The European Union is stepping up efforts to position itself as a global leader in artificial intelligence with its new “AI continent action plan,” but experts warn the bloc faces steep hurdles despite recent progress.
According to a September 2025 briefing from the European Parliamentary Research Service (EPRS), the EU’s ambitions go beyond the landmark AI Act adopted in 2024, which set the world’s first comprehensive regulatory framework for AI. The new plan, unveiled in April 2025, seeks to pair strong oversight with major investments in infrastructure, skills, and adoption across public and private sectors .
The action plan’s five priorities include building large-scale AI factories and gigafactories, improving access to data, accelerating adoption in key industries, strengthening skills, and simplifying compliance with EU rules. Already, 13 AI factories are being deployed across Europe, and Brussels has launched a €20 billion initiative to stimulate private investment in gigafactories. Proposals for a Cloud and AI Development Act and a Data Union strategy are also expected by early 2026 .
Still, Europe lags behind global competitors. U.S. private investment in AI between 2013 and 2024 topped $109 billion, more than 25 times Sweden’s—the EU’s top investor—while China poured in nearly $9.3 billion. The U.S. also dominates in AI model development and patents, while Europe relies heavily on foreign cloud services and semiconductors. Only three notable European AI models emerged in 2024, all from France’s Mistral AI .
Stakeholders remain divided. Industry groups welcome simplification and investment but want faster commercialization. Civil society, meanwhile, warns against weakening rights or overlooking environmental costs tied to energy-hungry data centers.
Analysts conclude that Europe’s ability to “become an AI continent” will depend not only on executing the action plan but also on building a stronger single market for capital, reducing reliance on foreign technology, and ensuring AI adoption spreads beyond large corporations into small businesses and public administrations.
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