European Commission launches AI Continent Action Plan to accelerate AI leadership

The European Commission’s AI Continent Action Plan is based on a five-pillar strategy. (Photo: Shutterstock)

The European Commission (EC) has launched its AI Continent Action Plan, outlining a multi-pillar strategy to advance AI development and adoption across the European Union (EU). The announcement builds on a commitment made by EC President Ursula von der Leyen during the AI Action Summit in Paris in February 2025.

A central feature of the AI Continent Action Plan is the expansion of computing infrastructure. Thirteen AI Factories are currently being deployed alongside Europe’s supercomputing capabilities. These facilities aim to support startups, researchers, and industry in building and training AI models. The EC is also advancing plans for AI Gigafactories, large-scale hubs designed to house around 100,000 state-of-the-art AI chips. These facilities will enable the training of complex AI models and will require coordinated public and private investment. A call for expressions of interest has also been launched in this regard.

“This Action Plan outlines key areas where efforts need to intensify to make Europe a leading AI Continent,” said EC Tech Sovereignty, Security and Democracy Executive Vice-President Henna Virkkunen. “We are working towards a future where tech innovation drives industry and public services forward, bringing concrete benefits to our citizens and businesses through trustworthy AI. This means a stronger economy, breakthroughs in healthcare, new jobs, increased productivity, better transport and education, stronger protection against cyber threats, and support in tackling climate change.”

Expanding AI infrastructure across the EU

To finance these developments, the InvestAI programme will mobilise up to €20bn, targeting up to five AI Gigafactories. The Commission will also propose a Cloud and AI Development Act to stimulate investment in sustainable data centres, aiming to triple the EU’s data capacity over the next five to seven years.

Data access forms another pillar of the plan. Data Labs will be created within AI Factories to curate large, high-quality datasets. These will support a Data Union Strategy, expected later this year, to build an integrated internal market for AI-relevant data.

According to the EC, adoption of AI remains limited, with only 13.5% of EU businesses currently implementing the technology. To address this, the upcoming Apply AI Strategy will promote the use of AI in priority sectors, using networks such as European Digital Innovation Hubs.

To meet workforce demands, the plan includes measures to recruit international AI talent and support European researchers through the Talent Pool, AI fellowships, and the AI Skills Academy.

Regarding regulation, the AI Act, which has been in force since August 2024, provides a legal framework for AI deployment. The Commission will launch an AI Act Service Desk to help businesses comply with the rules.

Public consultations on the Cloud and AI Development Act and Apply AI Strategy are open until 4 June 2025. A third consultation on the Data Union Strategy will follow in May.

Earlier this year, more than 60 European companies, including technology startups and large industrial firms, launched the EU AI Champions Initiative to support the scale-up of AI across the continent. As part of the initiative, over 20 international investors have pledged a combined €150bn in funding for AI-focused projects over the next five years.

Read more: European companies launch AI initiative backed by €150bn in investor commitments