The European Commission has recently published its “AI Continent Action Plan”[1] and, doing so, set itself no less a task than winning the global race for AI leadership and making Europe the leading AI continent. This shall be achieved by, inter alia, investing over EUR 200 billion to boost AI development in Europe and to finance AI gigafactories.
But what’s the reason behind this action plan? On the one hand, EU’s AI scene is booming and counts more than 6,800 AI startups. But, on the other hand, and according to current statistics, only 13.5% of the companies based in the EU territory have adopted AI so far.[2] That said, the AI Continent Action Plan wants to achieve that each and any stakeholder in business, public sector, research and development has access to suitable and reliable AI solutions to be successful in its particular business in compliance with applicable laws.[3]
We have taken a deeper look at the AI Continent Action Plan and tried to pull together its key essentials in short and plain language as per below.
- General
The AI Continent Action Plan focuses on the following five key topics: (a.) building a European AI computing infrastructure, (b.) data to boost AI capabilities, (c.) promoting AI in strategic sectors, (d.) AI skills and talents and (e.) simplifying implementation of measures for AI Act compliance.
By bundling some new and familiar initiatives such as the InvestAI initiative[4] which mobilizes investments of over EUR 200 billion, the European Commission targets both private and public sectors and aims to facilitate use of AI in any and all sectors and branches.
- The AI Continent Action Plan at a Glance
- Building a European AI computing infrastructure
As a key component, the Commission’s plan shall pave the way for a robust cutting-edge European AI computing infrastructure. According to the so-called AI Factories Initiative,[5] a total number of 13 AI Factories shall be established in twelve EU countries. Besides, nine AI optimized supercomputers shall be deployed across the EU in 2025/2026, while one specific supercomputer already in place shall be upgraded with AI capabilities.[6] AI Factories shall represent dynamic ecosystems and foster innovation, collaboration, and development in AI. They shall interconnect with large national data repositories and EU Data Spaces, enhancing collaboration of supercomputing centres, universities, startups, industry and public sector as well as financial stakeholders.
Apart from that, the European Commission pursues to establish up to five AI Gigafactories. These large-scale facilities aim to develop and train complex AI models at an unprecedented scale. They also require significant investments by, inter alia, public-private partnerships.[7] According to the latest information available in public domain, their official call for establishment shall be published in the fourth quarter of 2025.
Beyond that, the European Commission wants to pave the way to bring Europe’s cloud infrastructure to the next level and make it more powerful and independent. Compared to the U.S. and China, data center capabilities in Europe are quite low and Europe has heavily relied on infrastructure located in and controlled by non-EU jurisdiction. As such third party infrastructure represents the EU’s tender spot for economic and political sovereignty and freedom, the European Commission wants to push EU’s private business sector to build own powerful and independent IT capacities within the European Union. This shall be incited by a new Cloud and AI Development Act.
- Data to boost AI capabilities
Alongside intended improvement and enhancement of physical digital infrastructure in the EU, the European Commission aims to enhance data availability and its interoperability across sectors. Therefore, the European Commission plans to announce a new Data Union Strategy in the second half of 2025.[8] It aims to optimize existing data legislation by reducing complexity and administrative burdens. Also, specific European Data Labs shall be installed alongside the AI Factories Initiative to gather data from different AI Factories and realize access to Common European Data Spaces.[9] This shall bring AI developers in the position to access high-quality data across sectors. Also, Data Labs may, as an example, help to enrich datasets, foster interoperability across sectors and borders and support data-pooling activities.[10] As a key component of the initiative, the European Commission also plans to introduce a shared cloud software called Simpl[11] in order to simplify data space management and connection.
- Promoting AI in strategic sectors
Another key element of the European Commission’s AI Continent Action Plan is to promote AI in strategic sectors. This so-called Apply AI Strategy focuses on certain key industrial sectors in which the EU ”has a strong leadership”. This particularly applies to aerospace, environment and climate, pharmaceutical, and science. Beyond that, use of AI shall also be boosted across other sectors, such as public services, healthcare, justice, education and public administration.[12]
For the purpose of pushing digital transformation activities, especially in SMEs, mid-caps and in the public sector, the European Commission supports the idea to install European Digital Innovation Hubs[13] in all EU Member States and beyond. The European Commission’s AI Innovation Package launched in January 2024[14] already strengthened efforts in Research & Innovation as well as AI-related measures, especially regarding robot autonomy, human-robot collaborations, or cyber defense “made in Europe”.
- AI skills and talents
The Commission is convinced that Europe’s greatest strength still is its well educated population.[15] As AI is likely to affect all kinds of professional activities, AI needs to become key in education with the clear goal to enhance EU’s AI specialists and experts pool, to keep AI talents in the EU and to attract them from outside of the EU. This should be reflected in suitable bachelor’s, master’s and PhD programs both in AI and key technologies in general in the course of intended launch of an AI Skills Academy in the second quarter of 2025. The AI Skills Academy shall develop a pilot degree focusing on generative AI.[16]
- Simplifying implementation of measures for AI Act compliance
At the heart of the European Commission’s action plan lies a successful implementation of AI Act requirements. This goal shall be reached by a combination of several measures: First of all, the European Commission plans to launch a so-called AI Service desk. It shall act as a central information hub for AI Act related measures where stakeholders can ask for help and for tailor-made responses.[17] AI regulatory sandboxes – i.e. controlled frameworks to be set up by competent authorities of each Member state which offer providers or prospective providers of AI systems the option to develop, train, validate and test, where appropriate in real-world conditions, an innovative AI system, pursuant to a sandbox plan for a limited time under regulatory supervision – shall be operational by August 2026. Also, stakeholders can already engage with the AI Office by participating in the AI Pact.[18]Furthermore, the European Commission has already published some and aims to publish further guidelines to support stakeholders which are bound by particular AI Act requirements to implement measures and processes as required. In this context, the European Commission already published both guidelines on prohibited AI practices[19] and AI system definitions in February 2025[20]. This supporting material shall be completed in the near future by way of templates, specific guidance material, webinars and training sessions.[21]
- Summary and Outlook
As a result, the AI Continent Action Plan represents a bold and ambitious step towards positioning the European Union as a global leader in AI. In days of economic uncertainty, technological innovation and political struggle, investments in key technologies such as AI are mandatory and important to strengthen EU’s position in challenging times and to steer the EU, its members states and population towards a stable and reliable future.
In this context, successful implementation of AI Act requirements takes on a crucial role to ensure that efforts translate into tangible benefits. Especially non-comprehensive administrative burdens have the potential to block innovation. From a legal perspective, implementation support is key and related initiatives, such as an AI Service Desk, are therefore highly welcome.
[1] Available at: https://commission.europa.eu/topics/eu-competitiveness/ai-continent_en (last accessed 8 May 2025)
[2] As of 2024, see https://ec.europa.eu/eurostat/databrowser/view/isoc_eb_ai/default/table?lang=en (last accessed 8 May 2025).
[3] AI Continent Action Plan, page 3.
[4] See the press release “EU launches InvestAI initiative to mobilise €200 billion”, available at https://ec.europa.eu/commission/presscorner/detail/en/ip_25_467 (last accessed 5 May 2025).
[5] For more information see https://digital-strategy.ec.europa.eu/en/policies/ai-factories (last accessed 8 May 2025).
[6] AI Continent Action Plan, page 4.
[7] AI Continent Action Plan, page 8.
[8] AI Continent Action Plan, page 11.
[9] https://digital-strategy.ec.europa.eu/en/policies/data-spaces (last accessed 8 May 2025).
[10] AI Continent Action Plan, page 11.
[11] See https://simpl-programme.ec.europa.eu/ (last accessed 8 May 2025).
[12] AI Continent Action Plan, page 13.
[13] For more information see https://digital-strategy.ec.europa.eu/en/policies/edihs (last accessed 8 May 2025).
[14] See https://digital-strategy.ec.europa.eu/en/factpages/ai-innovation-package (last accessed 8 May 2025).
[15] AI Continent Action Plan, page 18.
[16] AI Continent Action Plan, page 19.
[17] AI Continent Action Plan, page 21.
[18] For more information on the AI Pact see https://digital-strategy.ec.europa.eu/en/policies/ai-pact (last accessed 8 May 2025)
[19] Annex to the Communication of the Commission from 4 February 2025, C(2025) 884 final.
[20] Annex to the Communication of the Commission from 6 February 2025, C(2025) 924 final.
[21] AI Continent Action Plan, page 22.