EU Invests €1.3 Billion to Boost AI Adoption & Improve ‘Digital Competencies’

EU Leaders Double Down on AI to Secure Digital Future

The European Union (EU) is pouring €1.3 billion ($1.4 billion) over the next two years to accelerate the adoption of artificial intelligence technologies. The funding will support the development and testing of “immersive environments” to apply in healthcare for purposes like training and virtual patient assessments.

The investment will also support the implementation of the AI Act, which ensures all AI systems developed and used in the EU are done so safely and responsibly. Additionally, it will help build energy-efficient digital public digital infrastructure, including electric vehicle charging ports. Many of the generative AI models powering these initiatives will be created by the EU’s AI factories, specialized research centers using powerful supercomputers.

“Securing European tech sovereignty starts with investing in advanced technologies and in making it possible for people to improve their digital competences,” Henna Virkkunen, executive vice-president for Tech Sovereignty, Security and Democracy, said in a press release.

Funding Allocation

Funding will also be allocated towards:

• Supporting European Digital Innovation Hubs, which offer companies training and resources in technologies such as AI.
• Building the Destination Earth digital model, which simulates environmental changes to support policy-making and sustainability efforts.
• Improving the cyber security of critical infrastructure like hospitals and undersea cables.
• Building and promoting the EU Digital Wallet architecture, which will allow citizens to store official documents, like passports and driving licenses, in a smartphone app.
• Supporting EU education and training institutes in providing digital skills and recruiting for these courses.
• Developing other secure, interoperable digital public services.

The funding comes from DIGITAL, a program of €8.1 billion focused on increasing digitization for businesses and individuals in the region. Businesses and other EU entities will be invited to apply for DIGITAL funding or programs from next month.

SEE: UK Trails Behind Europe in Technical Skills Proficiency, Coursera Report Finds

Europe Desperately Wants to Shake Its Reputation of Being Technologically Behind

Europe has developed an unfortunate reputation for being behind other global superpowers when it comes to technology. According to a 2024 report from former European Central Bank President and economist Mario Draghi, Europe’s lack of innovation has led to the US outpacing the EU’s GDP by $9 trillion in 2023. Despite Europe’s top three R&I investors being in tech, “we are failing to translate innovation into commercialization,” he said, pushing entrepreneurs to relocate to the US.

A Google report published in October 2024 found that Europe spends only 2% of its GDP on tech research; by contrast, the U.S. spends 3%, and South Korea and Israel spend over 5%. The region specifically lags in AI innovation, having only filed 2% of global AI patents in 2022, while China and the U.S., the top two largest producers, filed 61% and 21%, respectively, according to Stanford University’s 2024 AI Index.

“Present gaps indicate that the EU risks falling behind the next wave of AI and needs to ramp up its efforts to remain competitive,” the Google researchers wrote. Among other recommendations, the report suggested that Europe invests in AI research to make it more accessible.

Conclusion

The EU’s investment in AI is a significant step towards securing its digital future. The funding will support the development of immersive environments, AI Act implementation, and energy-efficient digital public infrastructure. Additionally, it will help build a strong foundation for digital skills and innovation in the region.