The European Commission has unveiled its most ambitious roadmap yet for artificial intelligence with the release of the “AI Continent Action Plan,” a sweeping initiative designed to transform the European Union into a global leader in AI innovation, governance, infrastructure, and deployment. Backed by new funding streams and institutional support, the plan lays out how the EU intends to scale AI across sectors while reinforcing ethical standards and strategic sovereignty.

At the heart of the plan are five priority areas: boosting computing infrastructure, unlocking data access, accelerating AI adoption across strategic sectors, investing in education and talent, and ensuring trust and compliance with the AI Act. Each area features specific timelines, funding mechanisms, and collaboration opportunities between Member States, the private sector, and academia.

Supercomputers and Gigafactories: Scaling Europe’s AI Ambitions

A central pillar of the plan is the expansion of Europe’s computing capabilities through the creation of 13 “AI Factories” and the development of future “AI Gigafactories”—massive facilities with exascale computing power capable of supporting the development of frontier AI models. These efforts are supported by the EuroHPC Joint Undertaking and are expected to triple the EU’s AI computing capacity by 2026.

Each AI Factory, hosted by leading national supercomputing centers, is tailored to key industries ranging from healthcare and biotechnology to manufacturing, energy, and public services. Facilities in Finland, Germany, France, Spain, and elsewhere will offer AI-optimized infrastructure and serve as innovation hubs for startups, SMEs, and research institutions.

A call for proposals to establish the first Gigafactories has been launched, with up to €20 billion in public-private investment anticipated under the new InvestAI Facility.

Democratizing Data and Powering Innovation

Another key component is the proposed Data Union Strategy, which aims to break down silos across sectors and Member States to create interoperable, high-quality data ecosystems. The EU will also establish sector-specific Data Labs, enabling AI developers to securely access pooled datasets through the new AI Factories.

Simultaneously, the Cloud and AI Development Act, slated for Q4 2025, seeks to address Europe’s lag in cloud and edge computing capacity by reducing permitting delays and incentivizing data center construction.

Driving AI Adoption Across Industries and the Public Sector

To overcome Europe’s sluggish AI adoption rate—just 13.5% of companies had implemented AI as of 2024—the Apply AI Strategy will focus on supporting mid-sized companies and public institutions through targeted programs, including regulatory sandboxes and a refocused European Digital Innovation Hubs network.

Strategic sectors prioritized include health, advanced manufacturing, defense, energy, and mobility. The plan also calls for the integration of AI into public services, such as healthcare systems and administrative functions, through pilot programs and procurement incentives.

Education and the AI Skills Academy

The EU is also tackling the looming AI talent gap. The AI Skills Academy, launching in Q2 2025, will serve as a pan-European hub offering training, AI fellowships, and even a pilot degree program focused on generative AI. Additional efforts include scholarships, returnship programs for women, and a reinforced commitment to STEM education.

To attract global AI talent, the Commission will also streamline visas and launch the MSCA “Choose Europe” program for international researchers.

Ensuring Trust, Compliance, and European Values

Trust remains a central theme. With the recent adoption of the EU AI Act, the Action Plan emphasizes mechanisms to help SMEs comply with legal requirements and to build citizen confidence. This includes testing facilities, certification programs, and strong links between innovation and regulatory guidance.

By aligning technical excellence with ethical leadership, the Commission hopes to differentiate Europe’s “human-centric” AI model from those emerging in China and the United States.

A Cohesive, Competitive AI Continent

The AI Continent Action Plan is not just an economic strategy—it is a political vision. Through unified regulation, shared infrastructure, and massive public-private investment, the EU aims to close the AI gap with global competitors and shape a future in which artificial intelligence supports democratic values, scientific discovery, and inclusive growth.

Stakeholder consultations on key legislative components of the plan are underway, with most major initiatives—such as the Apply AI Strategy and the Data Union Strategy—expected to be adopted by late 2025.

Need Help?

If you’re wondering how the EU’s AI policy, or any other government’s bill or regulations could impact you, don’t hesitate to reach out to BABL AI. Their Audit Experts are ready to provide valuable assistance while answering your questions and concerns.