EU AI Strategy: Enhancing Competitiveness and Tech Sovereignty

Published Date : 8/10/2025 

The EU's Apply AI Strategy aims to enhance the competitiveness of strategic sectors and strengthen the EU’s technological sovereignty by promoting AI adoption and innovation across Europe, particularly among Small and Medium-sized Enterprises (SMEs). 

The EU's Apply AI Strategy is a comprehensive plan designed to enhance the competitiveness of strategic sectors and strengthen the EU’s technological sovereignty. This strategy marks a significant step towards making the EU an AI Continent. It aims to boost AI adoption and innovation across Europe, particularly among Small and Medium-sized Enterprises (SMEs).

The Apply AI Strategy encourages an AI-first policy, where AI is considered as a potential solution whenever organizations make strategic or policy decisions. This approach carefully considers the benefits and risks of the technology. The strategy also promotes a 'buy European' approach, particularly for the public sector, with a focus on open-source AI solutions.

The Apply AI Strategy complements the AI Continent Action Plan, which includes concrete actions to harness AI's transformative potential. The strategy is divided into three main sections:

1. Sectoral Flagships : This section includes targeted measures to boost AI adoption across 10 key industry sectors and the public sector. These sectors include healthcare and pharmaceuticals, mobility, transport and automotive, robotics, manufacturing, engineering and construction, climate and environment, energy, agri-food, defense, security and space, electronic communications, and cultural, creative and media sectors.

2. Support Measures and Actions : This section focuses on increasing the EU’s technological sovereignty by tackling cross-cutting challenges to AI development and adoption. It reinforces the role of European Digital Innovation Hubs, which have been transformed into Experience Centres for AI to serve as access points to the EU AI innovation ecosystem. This includes AI Factories and AI Gigafactories, AI Testing and Experimentation Facilities, and AI regulatory sandboxes. Several measures to enable an AI-ready workforce are also planned.

3. Governance System : The Apply AI Alliance is the main coordination forum that brings together AI providers, industry leaders, academia, and the public sector to ensure policy actions are grounded in real-world needs. Closely connected to the Alliance, the AI Observatory will track AI trends and assess the impact of AI in specific sectors.

The Apply AI Strategy is designed to support industries and the public sector in better understanding what AI can do, where it is effective, and how it can bring competitive advantage. The strategy includes three annexes:

1. Summary table of the structured dialogues organized to inform the Strategy

2. The Commission’s own internal AI-related initiatives

3. Summary table of AI-related actions of the Commission

Complementary strategies include the AI in Science strategy, which supports and incentivizes the development and use of AI by the European scientific community. The Commission will launch a pilot for the Resource for AI Science in Europe (RAISE), which will pool strategic resources such as funding, compute, data, and talent. RAISE will operate along two main pillars:

1. Science for AI, supporting basic research to advance core AI capabilities, particularly safe and secure frontier AI

2. AI in Science, promoting the use of AI for progress in different scientific disciplines

The Apply AI will also be complemented by the Data Union Strategy, which is foreseen for late October. This initiative aims to ensure the availability of high-quality, large-scale datasets essential for training AI models. 

Frequently Asked Questions (FAQS): 

Q: What is the main goal of the Apply AI Strategy?

A: The main goal of the Apply AI Strategy is to enhance the competitiveness of strategic sectors and strengthen the EU’s technological sovereignty by promoting AI adoption and innovation across Europe, particularly among Small and Medium-sized Enterprises (SMEs).

Q: What sectors are targeted by the Apply AI Strategy?

A: The Apply AI Strategy targets 10 key industry sectors and the public sector, including healthcare and pharmaceuticals, mobility, transport and automotive, robotics, manufacturing, engineering and construction, climate and environment, energy, agri-food, defense, security and space, electronic communications, and cultural, creative and media sectors.

Q: What is the 'buy European' approach in the Apply AI Strategy?

A: The 'buy European' approach in the Apply AI Strategy encourages the public sector to prioritize open-source AI solutions and support European AI providers, fostering a stronger and more resilient AI ecosystem within the EU.

Q: What is the role of the Apply AI Alliance?

A: The Apply AI Alliance serves as the main coordination forum, bringing together AI providers, industry leaders, academia, and the public sector to ensure that policy actions are grounded in real-world needs and effectively address the challenges and opportunities of AI adoption.

Q: What is the Data Union Strategy and how does it complement the Apply AI Strategy?

A: The Data Union Strategy, foreseen for late October, aims to ensure the availability of high-quality, large-scale datasets essential for training AI models. It complements the Apply AI Strategy by providing the necessary data infrastructure to support AI development and innovation. 

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