EU Advocates for 'Made-in-Europe' AI in Key Industries

Published: 10 Oct 2025

Author: Precedence Research

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The has urged businesses in critical sectors across Europe to increase their adoption of artificial intelligence (AI), encouraging them to leverage AI technologies developed within Europe. This move aims to reduce reliance on foreign providers of AI solutions. While the EU trails behind technological giants like the U.S. and China, it asserts that it can still compete effectively in the global AI race.

To achieve this, the European Commission is aiming to spend a huge amount of one billion euros to encourage key industries like energy & defense, pharmaceuticals, and others to promote tools that are European AI-powered and expects to develop AI models further. A major part of this investment will come from the EU's Horizon Research Program, which will be utilized for projects including the deployment of autonomous cars and advanced cancer screening centers with AI-powered facilities offered by European technology.

The EU is pouring billions of euros into developing Europe's AI infrastructure, such as establishing AI gigafactories and tripling data center capacity. According to the sources, only 13% of European enterprises have leveraged AI capacity, though the figure has since increased. The European Commission wants to improve its AI use to 75% by 2030. By emphasizing their target, EU chief Ursula Von der Leyen said, “I want the future of AI to be made in Europe. Because when AI is used, we can find smarter, faster, and more affordable solutions.”

According to the sources, external dependencies of the AI stack, including the tools required for building AI infrastructure, can be used against Europe by other countries and increase risks to supply chains by state and non-state actors.

Virukkunen told reporters, while addressing their AI development in the European Parliament, that companies should prefer European solutions where it's possible. Though she admitted that it is not always possible to favor European AI technology, they expects leading firms in Europe to do so, which will, in turn, strengthen their economy and reduce reliance on other countries for importing emerging technological solutions.