The European Union Coordinated Plan on Artificial Intelligence is a strategic initiative developed by the European Commission and EU Member States to promote development, deployment and use of AI technologies across the European Union. This chapter reflects on how the European Union needs to continue building and mobilising capacities to stay competitive in AI research and uptake. It looks at how EU Member States are fostering AI research and development, and increasingly consolidating AI expertise through dedicated research centres. The chapter then turns to how EU Member States are funding and scaling AI to enhance productivity and create new avenues for value creation. To that end, it examines support from European Digital Innovation Hubs, AI testing and experimentation facilities, initiatives to help domestic businesses adopt AI, and measures supporting innovative AI start-ups and scale-ups.
Progress in Implementing the European Union Coordinated Plan on Artificial Intelligence (Volume 1)
Abstract
The EU Coordinated Plan on AI is a strategic initiative to promote development, deployment and use of AI technologies across the European Union. It represents a joint commitment between the European Commission and EU Member States to maximise the impact of investments in AI, foster synergies and encourage co-operation across the European Union. The plan outlines a series of concrete actions to facilitate investment decisions, aligning AI policy in the European Union to remove fragmentation. It also aims to contribute to strengthening the global position of the European Union regarding the development and adoption of human centric, sustainable, secure, inclusive and trustworthy AI technologies and applications.
Within this framework, this chapter reflects on how the European Union needs to continue building and mobilising capacities to stay competitive in AI research and uptake. It looks at how most EU Member States are fostering AI research and development, and increasingly consolidating AI expertise through dedicated research centres. The chapter then turns to how EU Member States are funding and scaling AI to enhance productivity and create new avenues for value creation. To that end, it examines support from European Digital Innovation Hubs, AI testing and experimentation facilities, initiatives to help domestic businesses adopt AI, and measures supporting innovative AI start-ups and scale-ups.
The European Union is a leader in AI research but needs to continue building and mobilising capacities to stay competitive
Research and development (R&D) in Artificial Intelligence (AI) are critical drivers of technological progress, economic growth and geopolitical competitiveness. Over the past decades, the European Union has seen steady growth in the number of AI research publications. Meanwhile, AI research output has surged in the Republic of China (hereafter “China”). Since 2019, China has published more AI research than both the European Union and the United States. India has also made notable progress in recent years, more than doubling its number of AI research publications since 2015 (OECD.AI, 2025[1]). The EU-27 ranks second in terms of high-impact publications related to AI, slightly ahead of the United States but significantly behind China.
In this context, ensuring the European Union remains globally competitive requires sustained and increased investment in AI research capacities. Supporting Member States in building and expanding their national AI research infrastructures is critical, both through funding and establishment of national AI research excellence centres. Strengthening collaboration between these national centres at the EU level will further consolidate its AI research potential. This, in turn, will allow the European Union to compete more effectively with global leaders while maintaining a strong emphasis on trustworthy, ethical and human-centred AI development.
1. Note: Although by no means a perfect measure, citations are used to estimate the “quality” of a publication, with a decay factor to adjust for time. For each publication, the normalised quality score is: Quality score = # Citations / [(upcoming year) – (year of publication)]. Based on this score, publications are categorised into low, medium or high quality. To determine the appropriate category, the average number of citations per year in the field of AI are calculated and normalised using the same formula as above. The distribution of these normalised scores is used to assign categories: below the first quantile (low quality), between the first and third quantiles (medium quality) and above the third quantile (high quality).
Source: OECD.AI (2025[2]), AI Publications by Country (dataset group), https://oecd.ai/en/data?selectedArea=ai-research&selectedVisualization=ai-publications-time-series-by-country-2.
The EU Coordinated Plan on AI calls on Member States to take concrete actions to strengthen AI research at the national and regional levels:
Set up regional and national AI research excellence centres around AI, for example by using national funding instruments and RRF funds and create a research and technology transfer structure able to attract and retain talent while at the same time aiming to become a national reference point for AI research and development. The centres would ensure regional outreach and exchange, collaborate at the European level and, together with the EU-funded networks, build the distributed European AI lighthouse.
Strengthen investment in AI research, at national level, e.g. through the RRF.
Table 3.1 summarises key findings from the survey and complementary interviews.
Fostering AI R&D is a key pillar in the strategies and policies of the vast majority of EU Member States
Ensuring AI R&D initiatives remain well co‑ordinated and responsive to emerging needs will be essential to maintaining Europe’s competitive edge in AI research. In all, 23 EU Member States have reported 65 initiatives that centre mostly on two main areas: AI R&D funding (24 initiatives) and the creation or expansion of AI research centres (41 initiatives). The scope of these programmes varies considerably: while some governments adopt comprehensive, multi-year investment strategies, others focus on narrower or sector-specific projects. In parallel, many countries are establishing or reinforcing national AI centres and smaller university-led institutes, highlighting diverse pathways for fostering innovation.
EU Member States are strengthening national AI research through large-scale funding programmes
Several EU Member States have rolled out ambitious funding schemes, often spanning several years or strategic phases, to boost AI research and innovation.
In Belgium, three concurrent efforts anchor the country’s approach. The AI Fund, established under the Federal Public Service Policy and Support, allocates EUR 3 million per year for applied research in priority domains (e.g. health, cybersecurity). Meanwhile, the Flanders AI Research Program, launched in 2019, finances both foundational and industry-driven AI R&D (Flanders AI Research Program, 2024[3]). Additionally, the Research Foundation Flanders invests around EUR 20 million in fundamental AI research and EUR 73 million in AI innovation annually.
In 2017, Czechia launched the Operational Programme “Research, Development and Education”. It has allocated EUR 86.7 million (CZK 2.19 billion) to its AI R&D programme, which has so far funded 23 AI-related projects. The programme aims to enhance both educational resources and applied research capabilities, thus bridging university-led innovation and industry uptake.
Similarly, Ireland supports AI through Research Ireland challenge-based funding under its National Recovery and Resilience Plan (NRRP). With EUR 65 million committed, this multi-stream mechanism has financed 31 AI-related projects crossing eight broad research challenges. Moreover, the country’s Collaborative Alliances for Societal Challenges (COALESCE) programme fosters projects targeting societal challenges, including AI.
In Spain, the ENIA Chairs invest EUR 16 million (co-funded through the RRF) across 22 chairs. They are centred on topics such as responsible AI, ethics and “green algorithms”. In this way, they aim to connect academia, industry and multidisciplinary research teams (Spanish Government, 2024[4]).
France has allocated EUR 73 million over six years, starting in 2023, to its Priority Research Programme and Equipment (PEPR) on AI. It focuses on frugal AI, robust distributed systems and solid mathematical underpinnings (CNRS, 2025[5]).
Luxembourg positions AI at the heart of its National Research and Innovation Strategy. It aspires to serve as a “living laboratory” for AI, primarily in personalised healthcare and digital education (Government of Luxembourg, 2020[6]).
The Netherlands has launched ROBUST, a ten-year, EUR 45 million consortium to develop trustworthy AI systems, bringing together 54 partners from academia, industry and civil society (RVO, 2023[7]).
Poland uses the decade-long INFOSTRATEG programme to bolster advanced information, telecommunication and mechatronic technologies. Upcoming competitions aim to strengthen Polish AI potential (Government of Poland, 2025[8]).
Portugal provides targeted grants through its R&D Funds for Data Science and AI. It has committed EUR 10 million for public administration-academic collaborations and an additional EUR 2 million for joint work with Google.
Meanwhile, Sweden pursues a dual strategy. It hosts the continent-scale Wallenberg AI, Autonomous Systems and Software Program (EUR 560 million until 2031). In addition, through an AI-specific track under Vinnova, it has funnelled about EUR 173 million (SEK 2 billion) into more than 800 AI projects since 2009 (WASP, 2025[9]; Vinnova, 2025[10]).
Targeted, thematic AI research projects gain traction
Beyond broad-based funding programmes, several EU Member States have reported narrower or sector-specific initiatives. Language technologies have emerged as a key area, with countries launching initiatives aimed at strengthening AI capabilities in their respective languages.
In Bulgaria, the BgGPT initiative, launched by the Institute for Computer Science, Artificial Intelligence and Technology (INSAIT) in January 2024, is the first project to develop an open-source large language model (LLM) developed for the Bulgarian language (INSAIT, 2024[11]).
In Denmark, the Secure Platform for Developing Transparent Danish Language Models represents a EUR 2.78 million investment in advancing research-driven language model development (Digitaliseringsministeriet, 2024[12]). Complementing this, the Danish Text Data Must Be Freely Accessible initiative facilitates AI training by opening national archives and public records, embedding Danish language, culture and values into AI applications (Digitaliseringsministeriet, 2024[12]).
In France, the national AI strategy supports development of large test databases from national archives for the training of AI models. France also launched an initiative to establish large databases in the French language in October 2024 (Avrin, 2024[13]) and is involved in the European Digital Infrastructure Consortium for Language Technologies.
Greece is involved in EU LLM projects, including the LLMs4EU project and the LLM-Bridge project. In so doing, it aims to extend the capabilities of open LLMs to the Greek language (beyond the existing Meltemi and Llama-Krikri LLMs) and offer Greek companies, especially Greek small and medium-sized enterprises (SMEs), access to tools and resources to start becoming competitive regarding LLMs.
In Spain, the Project for Economic Recovery and Transformation on New Language Economy dedicates EUR 1.1 billion to linguistic corpora and generative AI tools for Spanish and co-official languages (Government of Spain, 2023[14]).
In Slovenia, CLARIN.SI supports research communities from humanities, social sciences and other language-related disciplines with language resources and technological solutions for language studies, with the emphasis on Slovene and other South Slavic languages. Several countries reported their participation in the Alliance for Language Technologies – European Digital Infrastructure Consortium (ALT-EDIC, 2025[15]).
Apart from language-based priorities, some countries have also focused on governance aspects; climate, health and manufacturing, and different aspects of technology:
In Austria, the Fostering Austria’s Innovative Strength and Research Excellence in Artificial Intelligence (FAIR-AI) project focuses on AI governance and regulatory challenges, addressing risks such as data shifts, cognitive bias and human oversight, in preparation for the EU AI Act (FAIR-AI, 2024[16]).
Research Ireland Frontiers for the Future Programme advances domain-specific AI research in Ireland through 16 active projects, covering climate adaptation, digital health and advanced manufacturing, with grants ranging from EUR 200 000 to EUR 1.5 million. Research Ireland also offers challenge-based funding across eight research challenge streams, with 31 AI-related projects under way at the time of writing.
Slovenia has implemented three AI-focused programmes addressing different technological areas. The Digital Transformation of Robotic Factories of the Future project applies AI and Industry 4.0 principles to optimise manufacturing automation (DIGITOP, 2024[17]). PoVejMo (2023‑2026) enhances natural language processing through AI‑driven models (ARIS, 2023[18]; CJVT, 2023[19]). The Gravity programme (2024‑2027) funds research in AI, semiconductors, language technologies and quantum computing, supporting early-stage technological development (ARIS, 2024[20]).
Member States increasingly consolidate AI expertise through dedicated research centres
Beyond research funding programmes, most EU Member States bolster their AI ecosystems by establishing centres of excellence and research hubs. More than half of Member States reported AI national-level centres to anchor policy and innovation efforts. A few also connect their national AI centres through national networks of excellence. However, cross-border collaboration appears limited. Meanwhile, a growing number of smaller, university-led entities concentrate on specific domains or niches.
More than half of Member States rely on national AI excellence centres to drive strategic AI innovation
More than half of EU Member States reported having established large, government-backed AI institutes as flagships in their national innovation agendas. In Bulgaria, INSAIT exemplifies this trend as the first AI research centre in Eastern Europe. It was created in collaboration with the Federal Institute of Technology Zurich) and Swiss Federal Institute of Technology in Lausanne. The centre focuses on generative pre-trained transformer models, deep technology (deep tech) ventures and quantum research, with a ten-year budget of about EUR 92 million (INSAIT, 2025[21]). Czechia maintains a comparable focus through its Czech Institute of Informatics, Robotics and Cybernetics, while Denmark anchors human-centric AI development at the Pioneer Centre for Artificial Intelligence (EUR 47 million from 2021 until 2034). Denmark also supports the transfer of research-based knowledge to industry via the Alexandra Institute (Alexandra Instituttet, 2024[22]). The country’s newly launched Centre for Artificial Intelligence in Society complements these efforts by offering interdisciplinary research and practical guidance on AI adoption (Digitaliseringsministeriet, 2024[12]).
Other notable examples include Spain Neurotech (EUR 200 million over 15 years), a centre bridging neuroscience and brain science with AI (Government of Spain, 2023[14]), and the Finnish Centre for Artificial Intelligence, which unites key academic and industrial players under the Research Council of Finland’s flagship programme. The Artificial Intelligence National Laboratory (MILAB) co‑ordinates multiple AI research initiatives in Hungary under a national framework (MILAB, 2024[23]). Ireland fosters market-driven AI solutions at the CeADAR technology centre, which also serves as an AI European Digital Innovation Hub. The Innovation Center for Artificial Intelligence in the Netherlands scales AI expertise across industries (ICAI, 2024[24]), while Poland bolsters cyber and administrative AI research at the Artificial Intelligence Security Research Centre and Artificial Intelligence and Data Analysis Centre (NASK, 2023[25]). Portugal is set to launch its own Centre of Excellence for AI R&D, aiming to boost overall research capacity. Sweden co‑ordinates at least 75 AI projects through its Research Institutes of Sweden and the Centre for Applied AI (RISE, 2025[26]; RISE, 2025[27]).
Italy has strengthened its AI research landscape through the Future Artificial Intelligence Research Foundation, a EUR 114.5 million initiative backed by the NRRP, uniting key academic and industry actors. Additionally, Italy has established several AI excellence centres, such as the Italian Institute of Artificial Intelligence for Industry in Turin, the European Laboratory for Learning and Intelligent Systems (ELLIS) in Milan and the Alma Mater Research Institute for Human-Centered Artificial Intelligence in Bologna.
Croatia has notably established the Centre for Artificial Intelligence, a leading institution focused on advancing theoretical AI foundations across multiple domains, including machine learning, deep learning, natural language processing, computer vision, financial analytics, robotics, Internet of Things (IoT), bioinformatics, cybersecurity and recommender systems. Latvia has formalised AI expertise consolidation with its National Artificial Intelligence Center, created under the AI Development Law to advance national AI adoption. Slovenia is similarly reinforcing AI expertise through its AI Competence Center, a long-term initiative with EUR 2 million in annual funding to support AI research, innovation and SME adoption. Completing this group, the Slovak Republic brings academia, business and government together via the Slovak Center for Artificial Intelligence Research (AIslovakIA), pushing forward collaborative AI innovation.
A few EU Member States connect their national AI centres through national networks of excellence
Some EU Member States opt for a network-driven model, pooling multiple institutes under a shared framework to increase synergies at the national level. Germany invests EUR 50 million annually in its Network of German Centres of Excellence for AI Research, comprising six institutes: i) the Berlin Institute for the Foundations of Learning and Data (BIFOLD); ii) the German Research Center for Artificial Intelligence (DFKI); iii) the Munich Center for Machine Learning; iv) the Lamarr Institute for Machine Learning and Artificial Intelligence North Rhine-Westphalia (LAMARR); v) the Center for Scalable Data Analytics and Artificial Intelligence Dresden/Leipzig (ScaDS.AI); and vi) the Tübingen AI Centre (TUE.AI) (DFKI, 2024[28]). Spain follows a similar approach with AI4ES, a consortium that unites four technology centres: the Technological Center for Research, Development and Innovation in Information and Communication Technologies, the Technological Center for Information and Communication Foundation, Eurecat and Tecnalia, mobilising around 300 researchers focused on data analytics, algorithmic breakthroughs and robotics (AI4ES, 2024[29]). Ireland channels public and private resources into the Research Ireland Centres, including Insight, Lero, CONNECT and ADAPT, which collectively receive EUR 230 million in government funding alongside significant industry co-investment.
Source: Data reported by EU Member States through the survey and interviews.
Nearly half of EU Member States strengthen their AI ecosystems through university-led and/or specialised research institutes
Smaller-scale initiatives, often embedded in universities or joint academic endeavours, propel AI research in specialised fields. In Austria, Clusters of Excellence “Bilateral AI”, hosted at Johannes Kepler University Linz and backed with EUR 19.8 million, integrates machine learning with symbolic AI methods (BilateralAI, 2024[30]). Belgium supports AI development through a number of prominent institutions. The FARI Institute, a collaboration between the Université libre de Bruxelles and Vrije Universiteit Brussel, engages 300 interdisciplinary researchers. Meanwhile, UGent.AI at Ghent University explores AI applications in public safety and ethical governance (FARI, 2024[31]; UGent.AI, 2024[32]).
Another flagship initiative in Belgium is TRAIL (TRusted AI Labs), launched in 2020 and now recognised as a strategic innovation initiative by the Walloon government. TRAIL brings together the five French-speaking universities (UCLouvain, UMONS, ULB, ULiège and UNamur), four accredited AI research centres (Cenaero, CETIC, Multitel and Sirris), the training consortium Numeria and a range of socio-economic and public actors, including the LIEU network, the Digital Agency, AI4Belgium, Pôle Mécatech, WSL and the Infopôle Cluster TIC. TRAIL fosters cross-sector collaboration to both apply and further develop AI expertise and tools, primarily through publicly and privately funded projects.
Greece has established two initiatives. The Archimedes Unit at the Athena Research Center fosters fundamental AI and data science research. For its part, AI Politeia Lab at the Institute of Informatics and Telecommunications Demokritos, an interdisciplinary research centre, focuses on responsible AI governance (Athena, 2024[33]; IIT Demokritos, 2024[34]).
In addition to the above-mentioned Centre for Artificial Intelligence, Croatia has invested in AI-driven research through the Centre for Artificial Intelligence and Cybersecurity at the University of Rijeka (EuroCC, 2025[35]), the Regional Center of Excellence for Robotics (CRTA, 2025[36]) and the Innovation Centre Nikola Tesla (ICENT, 2025[37]), all of which contribute to AI innovation across multiple industries.
In Finland, AI Hub Tampere takes an interdisciplinary approach to AI design and deployment, backed by a broad cohort of professors from Tampere University. Ireland has expanded its AI research within its Research Ireland Centres Insight, Lero, CONNECT and ADAPT. Latvia has further strengthened its AI research ecosystem through the IT Competence Centre project, which supports AI-driven innovations in software security, retail analytics and digital content classification.
In Malta, the AI Department and Institute of Digital Games at the University of Malta focus on augmented reality/virtual reality, creative computing and financial technology, leveraging game-based research to pioneer novel AI techniques. That university will also be setting up an AI Research Cluster to promote multidisciplinary AI research.
Poland showcases a cluster of specialised projects: the PLLuM (Polish Large Language Universal Model) consortium (PLLuM, 2025[38]), the ARTIQ-AI Center of Excellence in Artificial Intelligence at AGH University (NCN, 2021[39]) and a generative AI-focused lab at the University of Lodz CaMiNO centre (UL, 2024[40]), each reflecting Poland’s growing AI aspirations.
In Sweden, the AI Sweden Edge Learning Lab experiments with decentralised and edge-based AI approaches (AI Sweden, n.d.[41]), while the Slovak Republic fosters advanced intelligent technologies at KInIT, an independent, non-profit research institute.
Digital technologies, including AI, can contribute significantly to the competitiveness of the EU economy by enhancing productivity and opening new avenues for value creation. In this context, one key priority of the EU Digital Decade relates to reaching 75% of businesses using digital technologies, including cloud, data analytics and AI, by 2030. Capitalising on its research excellence in AI by enabling innovation and commercialisation on a large scale is a central priority of EU policies. In recent years, a range of initiatives has been launched to support economic actors.
Businesses in the European Union have started to adopt AI technologies, although at varying speeds
In 2024, approximately 13.5% of enterprises in the European Union reported using AI technologies, up from around 8% the previous year (Figure 3.2). Adoption rates vary significantly across countries and within countries. There remains a notable gap between EU “frontrunners” – such as Belgium, Denmark, Finland and Sweden – and other EU Member States, as well as between larger and smaller firms.
As a percentage of enterprises with ten or more employees
Source: OECD (2025[42]), Businesses using artificial intelligence (AI) (indicator), https://data-explorer.oecd.org/s/342.
Attracting investment in EU AI start-ups is crucial for accelerating deployment of advanced AI solutions Between 2013 and 2022, the number of specialised AI companies receiving financing in the United States was 2.5 times higher than in the European Union (French Government, 2023[43]). In 2024, more than 90% of global venture capital (VC) investment in AI, which amounted to approximately EUR 137 billion, was directed towards AI start-ups in the United States (Figure 3.3). In contrast, EU start-ups only attracted EUR 9.15 billion.
In 2024, there were approximately 6 300 AI start-ups in the European Union, of which about 10.6% can be classified as generative AI start-ups. Most of the latter are in Germany (19.9%), France (17.5%), the Netherlands (10.9%) and Sweden (8.2%), with public funding playing “only a minor role” in their development (AI Institute for Europe, 2024[44]). These start-ups primarily focus on developing downstream applications based on foundation models. A smaller proportion work on developing foundation models themselves, and building tools and infrastructure for generative AI models. Access to computational capacity for training their models was identified as a key need for EU start-ups (AI Institute for Europe, 2024[44]).
Source: OECD.AI (2025[45]), VC Investments in AI by Country (dataset group), https://oecd.ai/en/data?selectedArea=investments-in-ai-and-data&selectedVisualization=vc-investments-in-ai-by-country.
The EU Coordinated Plan on AI calls upon EU Member States to help develop an ecosystem of excellence in AI; help bring AI innovations into the commercialisation stage; and promote the broad uptake and deployment of AI technologies, notably through the following:
Commit an equal share of funding to testing and experimentation facility (TEF) projects selected by the Commission with the help of independent experts.
Define relevant new priorities for additional TEFs beyond the current sectors of agrifood, manufacturing, healthcare and smart communities. Possible new sectors could be mobility, public administration or green transition.
Take full advantage of the opportunities offered by the RRF, as well as by Cohesion Policy programmes, to fund more non-EU and European Digital Innovation Hubs ([E]DIHs) and TEFs to bring innovation closer to the market.
Support the creation of local, regional and/or national AI marketplaces for interaction and the exchange of best practice; and facilitate scale-up across borders through the EU AI-on-demand platform (central AI toolbox and marketplace), EDIHs and Startup Europe.
Support AI start-ups and scale-ups in accessing finance for their growth, as well as support SMEs in their digital transition in adopting AI technologies. Provided that the RRF objectives and conditions are met, Member States can make use of RRF funding to set up investment in the form of financial instruments (e.g. guarantees, loans, equity and venture capital instruments and the setting up of dedicated investment vehicles). Member States also have the possibility to contribute up to 4 % of their recovery and resilience plans’' total allocation to their compartment of InvestEU.
This section discusses the actions implemented by EU Member States to fund and scale innovative ideas and solutions for AI, in line with the EU Coordinated Plan on AI. Table 3.3 summarises key findings from the survey and complementary interviews.
EDIHs offer services to support AI adoption in SMEs
Co-funded under the Digital Europe Programme and national budgets, EDIHs (Box 3.1) serve as one‑stop-shops offering access to technical expertise, testbeds, training and support services for digital and AI transformation. Their role is particularly relevant in helping SMEs overcome barriers to technology adoption, including limited resources, skills shortages and lack of awareness about the potential of AI.
Many EDIHs deliver AI-specific services such as testing facilities for new solutions, guidance on regulatory and ethical considerations, and matchmaking with technology providers. In Austria, for example, the AI5Production hub provides AI-driven solutions for SMEs in manufacturing and healthcare, with services ranging from digital readiness assessments to support for project implementation. In Finland, the Finnish AI Region EDIH focuses exclusively on AI-powered services for regional SMEs.
In some countries, EDIHs are closely integrated with regional innovation ecosystems. Flanders AI EDIH in Belgium delivers an integrated service ecosystem to facilitate AI testing, upskilling, funding access and innovation matchmaking. In Wallonia, both EDIH WalHub (industry 4.0) and eDIH-CONNECT (construction) offer specific services to help companies see the benefits of AI and support them in its adoption. In Brussels, sustAIn.brussels supports AI-driven innovation in the Brussels-Capital Region, while Mittelstand-Digital Innovation Hubs in Germany offer tailored support for AI implementation, including in energy efficiency and resource management. The Green AI Hub Mittelstand specifically supports SMEs in using AI to improve energy and resource efficiency. These hubs are part of the dual approach in Germany that combines EDIH participation with a national infrastructure to support SME digitalisation and AI readiness.
Several countries have developed networks of EDIHs. Networks of EDIHs in Greece, Portugal and Romania have a clear focus on AI, often complemented by other facilities such as national test beds and regulatory sandboxes. The Netherlands hosts six EDIHs and seven regional AI hubs, supporting AI experimentation and adoption across diverse sectors. CROBOHUB++ and EDIH Adria in Croatia provide AI and high-performance computing (HPC) support for business processes, cybersecurity, health, tourism and sustainable development. Romania has developed a network of seven EDIHs, five of which (eDIH-DIZ, TDIH, DIH4Society, FIT EDIH, CiTyInnoHub) have an explicit AI focus, offering SMEs tools for AI adoption, testing and scaling. Greece similarly hosts seven EDIHs, with thematic focuses including AI applications in energy, environment, culture and tourism. In particular, the ahedd Digital Innovation Hub provides AI testbeds and sandboxes for SMEs and public entities.
In Hungary, the national AI EDIH fosters AI-driven innovation across SMEs, start-ups and public organisations and is complemented by technology vouchers to support uptake. In Portugal, the ATTRACT DIH supports AI and HPC adoption by SMEs. DIH Slovenia and the Smart, Resilient and Sustainable Communities EDIH both offer financing and testing services to AI-focused start-ups and SMEs. In Lithuania, EDIH4IAE.LT, EDIH VILNIUS and DI4 LITHUANIAN ID integrate AI capabilities across manufacturing and public services.
What are EDIHs?
EDIHs are regional support structures co-funded by the Digital Europe Programme and national governments. They function as one-stop-shops to help companies and public organisations harness digital technologies to enhance innovation, competitiveness and resilience. Many have a strong AI focus, either sectoral (e.g. manufacturing, health, energy) or thematic (e.g. trustworthy AI). EDIHs are distributed across Europe, ensuring broad territorial coverage. Their locations reflect strategic choices to leverage regional strengths and close digitalisation gaps. As of 2025, over 150 EDIHs are active across all EU Member States.
Key services offered
EDIHs tailor their support to regional needs, typically offering:
test-before-invest services (e.g. AI testbeds and demonstration environments)
skills development and training in AI, digitalisation and data use
support to find investments and navigate funding programmes
innovation ecosystem networking, matchmaking with technology providers, start-ups and research institutions
regulatory guidance (especially on trustworthy AI and data protection)
Sources: EC (2025[46]), “European Digital Innovation Hubs Network”, https://european-digital-innovation-hubs.ec.europa.eu/home; EC (2025[47]), “European Digital Innovation Hubs”, https://digital-strategy.ec.europa.eu/en/policies/edihs.
Nearly half of EU Member States reported initiatives related to AI testing and experimentation, with variations in focus and scope
Beyond EDIHs, several countries have specific TEFs to aid SMEs in evaluating and adopting AI technologies. By providing structured environments to develop, evaluate and refine AI systems, these facilities lower barriers to adoption, support innovation and facilitate compliance with emerging regulatory frameworks such as the EU AI Act. In most cases, initiatives reported by EU Member States focus on TEFs in the areas selected by the European Commission (agrifood, healthcare, manufacturing, smart cities and communities) (EC, 2024[48]); TEF initiatives in other sectors were seldom reported. However, there are several examples of cross-cutting AI testing and experimentation. While most countries report active experimentation initiatives, budget allocations for testing infrastructures are often difficult to isolate, especially where facilities are part of larger programmes or funded through mixed sources (e.g. RRF, Horizon Europe).
AI testing and experimentation
France has established one of the most comprehensive ecosystems, co‑ordinating two major EU-funded TEFs (AI‑MATTERS and PREVAIL). It is also launching a national evaluation laboratory at the National Metrology and Testing Laboratory. These efforts are part of a broader suite of activities under the Confiance.ai programme, with total funding exceeding EUR 100 million, including contributions from the RRF. Germany has launched the KIPITZ AI platform to support experimentation with LLMs in public administration. This will contribute to development of secure and scalable infrastructure for AI deployment. In Finland, Tampere City Lab (Tampere AI), which is part of the EU-wide CitCom.ai initiative, combines virtual and physical testbeds for smart city and AI‑powered solutions. It also supports development and testing of AI technologies in real-world urban environments. This is complemented by a call for projects focused on testing, experimentation and research to support SMEs and the country’s export sector (supported through EU funding). Portugal has built a dedicated National Test Beds Network to complement its Digital Innovation Hubs. This aims at scaling AI applications through hands‑on testing. Spain has adopted a networked approach through its RETECH IA initiative. This includes 13 flagship projects with a combined endowment of EUR 345.8 million, mobilising both RRF and regional funds. In Austria, the Automated Transport Innovation Labs provide testing environments for autonomous vehicle technologies. In Sweden, the Edge Learning Lab provides a testing environment enabling researchers to experiment with decentralised and edge learning (AI Sweden, n.d.[41]).
Testing infrastructures in the health sector
In the health sector, testing infrastructures are particularly prominent. Czechia hosts a national node of the TEF-Health facility at Masaryk University, enabling collaborative testing of health AI and robotics. The Slovak Republic has also joined the TEF-Health network with a focus on medical imaging, aligning national priorities with EU-level goals. Greece and Ireland have established AI testbeds and sandboxes, such as those within the ahedd Digital Innovation Hub.
Embedding testing within broader programmes
While some EU Member States have developed standalone infrastructures, others embed testing activities within broader programmes. For example, the Netherlands embeds AI projects in broader testing and experimentation settings (e.g. SURF). Slovenia facilitates SME access to testbeds as part of its service portfolio through the Smart, Resilient and Sustainable Communities EDIH, and Belgium promotes proof-of-concept development as part of its national AI strategy.
AI regulatory sandboxes
Some EU Member States have also started engaging in regulatory experimentation pertaining to AI. In December 2024, after established the regulatory foundation, Spain launched a call for expressions to participate in a pilot of the first AI regulatory sandbox. This initiative seeks to bring competent authorities close to companies that develop AI to define best practices and inform implementation of the EU AI Act (EC, 2022[49]). The pilot aims at selecting 12 high‑risk AI systems from different sectors and provide technical guidance and expert support to facilitate compliance with AI Act requirements. This call focuses on SME and start-ups, which are expected to encounter more difficulties regarding compliance.
As part of its digitalisation strategy, Denmark has opened a sandbox for testing AI solutions since 2024 to public and private organisations. It notably aims to provide guidance regarding General Data Protection Regulation compliance. Over time, it is expected to also address compliance with the AI Act.
The 2024 refresh of the national AI strategy in Ireland includes development of a national campaign to raise awareness among SMEs of the benefits of adopting AI and available support. It also foresees establishment of an AI regulatory sandbox to foster innovation and regulatory learning and provide legal certainty for investors.
EU Member States privilege broad digitalisation promotion programmes to encourage domestic businesses to adopt AI
Some countries offer financial support (grants and consulting) and voucher programmes for SMEs to explore and implement AI solutions. Other initiatives aim at facilitating access to resources through advice and “matchmaking” between research and firms, between start-ups and firms and among firms with potentially complementary needs and objectives. Approximately two of every three EU Member States reported at least one initiative to promote AI adoption by domestic businesses. However, in most cases these tend to go beyond AI proper and encompass digitalisation more broadly. These measures, combined with support from EDIHs and testing facilities, aim to lower the barriers for SMEs to integrate AI into their operations and enhance their competitiveness.
Lowering AI barriers for SMEs
Denmark provides grants to SMEs, mainly to buy private advice on identifying digitalisation potential (including through an AI-dedicated strand) or on implementation. Other support measures include subsidies for investments, skills and management development and guidance on digitalisation, although with a broader focus than AI. In addition, since May 2023, the Export and Investment Fund of Denmark helps smaller Danish companies access financing for digitalisation.
In Slovenia, the Ministry of the Economy, Tourism and Sport, in co‑operation with the Slovene Enterprise Fund, offers grants up to EUR 100 000 for digital transformation of SMEs. These include funds for use of advanced technologies, including AI.
In Greece, the Digital Transformation of SMEs initiative supports investments for development of new products and services in the information technology (IT) and communications sector. It covers costs related to purchasing software, training staff and integrating new digital solutions, including AI, through vouchers.
Latvia also provides funding for companies to buy digitisation and technology services through its Digital Vouchers to SMEs programme. Likewise, Hungary is also planning to launch a voucher programme. Grants will cover 60-80% of costs faced by up to 200 SMEs seeking to implement AI solutions. Hungary’s Modern Enterprises Program, which is implemented by the Hungarian Chamber of Commerce and Industry, assists SMEs in their digital transformation by providing resources and guidance on digital tools and technologies, including AI. It offers personalised IT audits, access to accredited IT suppliers, information on funding opportunities, thematic events and a digital knowledge repository (Modern Vállalkozások Programja, 2024[50]).
In Italy, the EUR 4.41 billion Transition Plan 5.0 provides financial incentives for SMEs and start-ups to integrate AI, IoT, collaborative robotics, automation, big data, blockchain and cloud technologies into their operations (MIMIT, 2024[51]). Spain has large digitalisation support programmes for companies, some of them specific to SMEs (Digital Kit, Kit Consulting) (red.es, 2025[52]).
Despite the general preference for broader digitalisation support programmes, EU Member States also reported AI-specific ones. In Belgium, Start IA provides 45 hours of support to companies by an AI expert. The goal of Start IA is to identify, based on the company’s activity and data, potential projects where AI technologies can add value (Digital Wallonia, 2024[53]). The Brussels-Capital Region offers “Start AI” innovation vouchers (up to EUR 10 000) to SMEs for AI experimentation with research centres, mirroring similar digital voucher programmes in other EU Member States.
Connecting entrepreneurs with experts
Other EU Member States connect entrepreneurs with expert consultants. In France, the AI Booster support helps entrepreneurs work with experts to discover appropriate AI solutions and initial operational deployment (Francenum, 2024[54]). In Germany, the AI for SMEs Grants (KI4KMU) support innovative AI projects led by SMEs in partnership with universities and start-ups. This programme encourages SMEs to explore advanced AI solutions in areas such as automated decision making, privacy-by-design and data engineering, with a focus on industry-specific applications like renewable energy, mobility and manufacturing (BMBF, 2020[55]). In 2024, Luxembourg enhanced Fit 4 Digital, a digitalisation support programme for SMEs, to focus on AI-specific measures. It enables businesses to collaborate with an experienced AI consultant who will help identify challenges, set objectives and prioritise development actions (LuxInnovation, 2024[56]).
Promoting knowledge transfer also features prominently in the set of measures adopted by EU Member States. In Denmark, DigitalLead serves as a hub for digital innovation by bringing together businesses, entrepreneurs and knowledge institutions. In Germany, the National Initiative for AI and Data Economy (Mission KI) connects AI start-ups and SMEs by identifying the specific innovation needs of SMEs. The initiative works with partners to match them with suitable AI developers. In Poland, AI4MSP, an online tool administered by the Polish Agency for Enterprise Development, connects firms looking for AI solutions with providers of AI solutions (Government of Poland, 2024[57]). Spain’s ENIA Chairs programme (Spanish Government, 2024[4]) aims at promoting multidisciplinary AI research leading to projects that can be transferred to industry. It also fosters knowledge transfer between universities and companies in areas including health, sustainability and the data economy.
Accelerating AI innovation in domestic firms
Several EU Member States have signalled an increasingly strong focus on generative AI in their emerging initiatives to support domestic AI firms. In Finland, Business Finland’s campaign on generative AI aims at accelerating generative AI-driven innovation for SMEs through research-based proof-of-concept projects. France launched calls for proposals to accelerate use of generative AI in the economy and on accessible digital commons across the generative AI value (BPI France, 2024[58]). In Germany, the Generative AI for SMEs programme aims to support the effective adoption of generative AI in businesses by showcasing practical use cases. It is designed to address the unique needs and opportunities of SMEs.
Enhancing the AI skills and regulatory preparedness of domestic firms are important features in the strategies of several EU Member States
Several EU Member States are working to enhance the AI skills and regulatory preparedness of domestic firms. In Austria, embrAIsme (2024) is an Interreg Europe project co-financed by the Federal Chancellery. It aims to encourage SMEs to take up AI through raising awareness of AI and the importance of related skills; facilitating access to funding; and building tools to support compliance of SMEs (aws, 2024[59]). Furthermore, the AI5Production EDIH focuses on AI. Comprising 16 partner institutions in Vienna and Upper Austria, it offers manufacturing companies comprehensive support with digitalisation. Companies with up to 2 999 employees can access its services free of charge. The initiative Fostering Austria’s Innovative Strength and Research Excellence in Artificial Intelligence (FAIR-AI) supports Austrian firms to implement the EU AI Act. These include technical issues like data shifts in dynamic environments; managerial obstacles such as high costs and the need for skilled staff; and socio-technical factors like raising risk awareness and mitigating cognitive biases in AI‑assisted decisions. The project aims to bridge the gap between regulatory requirements and practical application (FAIR-AI, 2024[16]). Similarly, Hubs for Tomorrow in Germany promotes skills and AI adoption among firms (Zukunftszentren, 2024[60]). In Spain, the Digital Generation SMEs programme aims to provide SME employees with the tools and knowledge for the digital transformation of their companies. In Croatia, the AI Center Lipik is a dedicated initiative promoting AI education and entrepreneurship. This includes through a start-up school, which combines theoretical training with hands-on mentoring to support business development in the AI sector.
Around two-thirds of EU Member States report initiatives to help start-ups and scale-ups access finance, although not exclusively for AI
Several EU Member States have a wide range of initiatives to support AI start-ups and scale‑ups. Many assist through EDIHs, which offer services such as mentoring, infrastructure access, training and guidance on securing investment. While some initiatives are AI-specific, most measures to support access to finance for start-ups are embedded in broader innovation and entrepreneurship programmes that include AI as one of several focus areas.
Venture capital initiatives
A significant number of countries facilitate access to finance through national VC initiatives or public funding instruments not limited to AI but inclusive of AI start-ups. In Greece, EquiFund and EquiFund II provide equity financing for start-ups, from seed to scale-up stages. EquiFund II manages a EUR 200 million fund-of-funds to stimulate innovation. In the Netherlands, Invest-NL provides equity and debt financing to companies advancing deep tech solutions, including AI, targeting SMEs. In Poland, PFR Ventures of the Polish Development Fund (PFR) channels VC investment into innovative and deep tech companies, including AI start-ups (PFR Ventures, 2025[61]). Spain supports high-potential digital and AI companies through large-scale initiatives including the Next Tech Fund (EUR 4 billion). In Italy, the Digital Transition Fund strengthens the national innovation ecosystem through direct and indirect VC investments. It focuses on emerging technologies, including AI. In Slovenia, the Early-Stage Innovation Fund offers equity financing for start-ups that contribute to the green and digital transitions. Sweden has a comprehensive innovation funding ecosystem, combining grants, soft loans and equity-based support.
Early-stage support to drive innovation
Many EU Member States also provide early-stage support to help launch innovation-driven businesses. Luxembourg supports AI and digital start-ups through the Digital Tech Fund, a seed fund launched as part of the Digital Luxembourg initiative. In Malta, the TAKEOFF Seed Fund Award provides grants ranging from EUR 2 500 to EUR 25 000 to help researchers and entrepreneurs develop their ideas, while the Start‑up Finance programme offers repayable advances to innovative small businesses and academic AI projects. In Slovenia, Start-up P2 subsidies – managed by the Ministry of the Economy, Tourism and Sport – help launch innovation-driven businesses with a focus on commercialisation. Meanwhile, the SID Bank offers additional equity financing for start-ups and scale-ups. The Innovative Starters Award in Belgium plays a similar role in scaling early-stage companies through strategic R&D funding.
Targeted programmes for AI or deep tech start-ups
Beyond general financial support to start-ups, many EU Member States have developed targeted programmes focused on AI or deep tech start-ups. In Austria, the Data Intelligence Offensive promotes innovative AI ideas and offers technical and financial support for start-ups and SMEs. In Belgium, Tremplin IA helps start-ups explore AI applications and develop proof-of-concept projects. Meanwhile, Innoviris offers funding for applied R&D, strategic AI initiatives and validation activities. The Innovative Starters Award, for example, grants up to EUR 500 000 over three years. The AI Cluster in Bulgaria runs specialised programmes offering technical guidance, professional development and access to AI infrastructure, linking AI companies with research institutions. In Czechia, the AI Hub, launched by CzechInvest in 2022, funds AI start‑ups in sectors like industry, healthcare and gaming. At the same time, the Technology Incubation project aims to support around 250 start-ups by 2025, earmarking a portion of its EUR 27 million budget for AI. In Germany, Mission KI supports PhD students and postdoctoral researchers in transforming their AI research into start-ups through the AI Founder Fellowship. It connects AI developers with SMEs in need of AI solutions. In Lithuania, the Startup Lithuania Accelerator provides start-up services, with 30% of participants working in AI. Meanwhile, additional RRF and EU Investment Framework funding targets AI innovation in regional start-ups and spin-offs. The AiNed programme in the Netherlands, funded by the National Growth Fund, promotes AI adoption by supporting research grants, innovation labs and start-up development.
Public-private and research-driven platforms
Public-private and research-driven platforms are also playing a crucial role in AI start-up development by fostering collaboration across academia, industry and government. In Finland, the 6G Bridge and Data Economy programmes collectively offer over EUR 260 million to support data-driven and AI-based business models, encouraging start-ups to commercialise emerging technologies. In Poland, Start in Poland acceleration programmes support accelerators, which are required to select at least 25% of start-ups working in areas like AI. The Startup hub portal in Portugal connects start-ups with investors, accelerators and incubators, serving as a gateway to national and EU support programmes (Startup Portugal, 2020[62]). In Bulgaria, Startup Ecosystem support provides entrepreneurs – particularly in the fields of innovation and technology – a strong emphasis on AI, focusing on improving access to VC and fostering a more effective policy framework for entrepreneurship.
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