The European Union is preparing to unveil a new artificial intelligence strategy designed to strengthen Europe's technological independence and reduce its reliance on foreign suppliers.
However, questions remain over whether Brussels' proposed €1 billion investment will be enough to compete with the vast resources of the United States and China.
European Commission President Ursula von der Leyen announced plans to accelerate the continent's adoption of AI through the Apply AI strategy, emphasising the need for Europe to stay competitive in the global technology race.
The initiative aims to position AI not only as a productivity tool but as an essential part of the EU's institutional, industrial and security frameworks.
Aiming for Digital Independence
According to a draft proposal reported by the Financial Times, the Commission's strategy seeks to promote the development and use of European-made AI systems to strengthen the bloc's resilience, enhance competitiveness and improve security.
The plan highlights the importance of expanding AI integration across manufacturing, healthcare and defence, while encouraging the deployment of scalable, generative AI solutions within public administrations.
The proposal, expected to be presented by EU tech chief Henna Virkkunen this week, warns that Europe's dependence on non-EU software and cloud infrastructure could leave it vulnerable to external disruption. Brussels fears that the so-called AI stack underpinning modern applications could be exploited or 'weaponised' by state or non-state actors, threatening both supply chains and strategic stability.
Defence is set to be one of the key areas of focus, as European governments increase spending in response to Russia's war in Ukraine and growing uncertainty about US engagement in regional security.
The plan includes measures to develop AI-enabled command and control systems and to build sovereign 'frontier models' for space and defence technologies currently dominated by American and Chinese firms.
Funding Questions
To turn these ambitions into reality, Brussels is allocating €1 billion from existing funding programmes to accelerate AI deployment across the bloc. However, analysts note that this figure pales in comparison to the hundreds of billions being invested by US and Chinese companies and state funds.
While the EU's approach aims for targeted innovation rather than large-scale spending, experts have warned that the financial gap could hinder Europe's goal of digital sovereignty. Many argue that the bloc must also address regulatory hurdles, slow venture funding and fragmented national policies that have held back its start-up ecosystem.
Competing in a Global Market
Europe has made notable progress in developing homegrown AI firms such as France's Mistral and Germany's Helsing, but both still rely heavily on US-based cloud infrastructure, chips and investment. As China continues to expand its state-backed AI industry and the US consolidates its lead through private innovation, the EU risks being sidelined unless it can scale its domestic capabilities more rapidly.
The European Commission's strategy underscores the role of public administrations in driving that growth. By prioritising open-source and locally developed AI systems, Brussels hopes to create a stable demand base that will help European start-ups expand and reduce dependency on non-EU technology providers.
Despite its ambitious vision, the question remains whether €1 billion and a renewed policy framework will be enough to give Europe a genuine foothold in the global AI race. For now, the continent's path to technological independence appears more aspirational than assured.
