5 days ago
Europe's New AI Plan Is Ambitious—Now Comes The Hard Part
Frederik R. Pedersen, CEO and Co-Founder of EasyTranslate, driving innovation at the intersection of AI and human expertise.
It's no secret that the EU needs to solve its innovation problem. In 2024, only 13% of European companies used AI. Europe's slow adoption of technology has had serious consequences. According to a report by DigitalEurope, it's a key contributor to the 30% gross domestic product gap between the EU and the U.S. DigitalEurope also estimated Europe's regulatory burdens cost businesses €200 billion annually.
Regulations and reporting are just some of the hindrances holding Europe back. Infrastructure, labor pool, culture and access are also challenges.
In April, the European bloc announced the AI continent plan, following a pledge in February to mobilize €200 billion in AI investments. The public-private allocation includes €150 billion from investors for AI-related opportunities and a new €20 billion fund that the EU established to build five AI gigafactories.
The plan has five elements: additional computing infrastructure, greater access to data, increased adoption of AI, a wider and more skilled talent pool trained on AI and a single market unhampered by excessive regulatory policies.
As a founder of a European tech company, I welcome this shift. However, setting bold goals is only the beginning. The success of this plan will depend on execution and a willingness to embrace a different mindset, that of an entrepreneur rather than a bureaucrat.
Clarity Over Complexity
For too long, uncertainty has held back AI innovation in Europe. Regulation is important, but when it becomes overly complex or fragmented across member states, it slows everyone down. If the EU wants to compete globally, it needs to make sure companies can act on these rules while remaining agile.
One big step in the right direction is to consult with the tech industry to identify and minimize friction points. Just like any startup, gathering feedback from users is critical to building a better product or service. Another is the idea of a 28th legal regime, a framework that would allow AI companies to operate across Europe under one set of rules. This could be a game-changer, especially for smaller companies without the resources to navigate 27 different systems.
Building What's Missing
According to a POLITICO report, the commission has also proposed building five AI "gigafactories," and OpenAI has recommended that Europe increase its computing power by 300% by 2030. If done right, it could make a real impact. However, it's not just about building infrastructure; it's about ensuring that access to that infrastructure is affordable and widely available.
It will be important to avoid creating another layer of inequality where only the largest players benefit from public investment. The real opportunity lies in democratizing access to the computing power and data that drive AI progress.
Addressing The Skills Gap
Another part of the plan focuses on AI skills. In April 2025, OpenAI suggested that 100 million Europeans would need to be trained in AI by 2030. Whether or not that number is realistic, it reflects the scale of the challenge. Europe needs a serious, coordinated effort to upskill its workforce.
Right now, the EU lags behind when it comes to AI-readiness. In the U.S., upskilling is already becoming a priority across industries. In Europe, we're just getting started. Public funding, corporate training programs and accessible learning pathways all need to play a part if we want to see meaningful progress.
What Happens Next Matters Most
Europe is right to aim high. The global AI race is well underway, and the window to catch up is still open—but not for long. The AI continent plan shows that Europe is willing to step into a more ambitious role.
The next test is whether it can turn this ambition into something tangible. That will require coordination, trust and urgency from everyone involved.
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