5 days ago
Europe's AI ambitions soar on €200bn funding amid global tech slowdown
Artificial intelligence investment across Europe and the UK is accelerating, signalling the region's ambition to rival established leaders in the US and China.
Despite a broader global slowdown in technology funding, European AI startups recorded a 55% increase in investment during the first quarter of 2025, said an industry expert.
This momentum is supported by the European Commission's €200 billion ($224.5 million) InvestAI programme, a landmark initiative designed to cement Europe's position at the forefront of AI innovation, stated Louis Napoletani, the Founder & CEO of Mottli, a UK-based brand consulting and mobile application development company.
A significant portion of this funding, €20 billion, is allocated for AI gigafactories, he stated.
The European AI ecosystem is led by Germany, France and the UK, where AI represents the most prominent sector among the continent's fastest-growing startups.
Firms operate across a broad spectrum, from foundational model development to intelligent agents and middleware solutions, reflecting a sophisticated and well-established environment.
British companies such as Synthesia, ElevenLabs and Plumerai demonstrate the UK's strength in both AI research and commercial applications. Meanwhile, Paris-based Adaptive ML is advancing reinforcement learning techniques, exemplifying the continent's growing expertise in cutting-edge AI technologies.
In the UK, AI adoption is expanding rapidly across enterprises of all sizes. The market, currently valued at over £21 billion ($28 billion), is forecast to grow substantially.
The government has committed more than £2.3 billion to AI since 2014, with recent budgets allocating nearly £1 billion for research and development, including a £900 million supercomputing project, said Napoletani.
Greater London remains the focal point of AI activity, hosting over 1,300 specialist companies, he stated.
