Europe rolls out $1.1B plan to reduce reliance on U.S. and Chinese AI, defense tech

The European Commission (EC) has launched a $1.1 billion “Apply AI Strategy” to expand AI use across the bloc’s key industries. The plan will reduce Europe’s reliance on U.S. and Chinese technology and promote open-source AI innovation.

The EC introduced the plan in Brussels today as part of its broader goal to strengthen its industrial competitiveness. The Commission revealed that funding will be generated from existing programs such as Horizon Europe and Digital Europe, including member states and private partners who have been urged to match their contributions. 

The ‘Apply AI Strategy’ plan encourages AI adoption across EU industries

The European Union President, Ursula von der Leyen, revealed that the “Apply AI Strategy” initiative shows Europe’s commitment to leading artificial intelligence innovation. Leyen hopes the future of AI will be made in Europe, emphasizing that the plan will encourage widespread adoption across healthcare, energy, mobility, and manufacturing industries. 

The Commission had already launched another plan in April to reduce regulatory barriers for startups. The latest plan goes beyond regulations to direct deployment and focuses on practical applications of AI in areas considered necessary for European economic and security interests.

The European Commission identified some industry sectors that will benefit from the expansion, including healthcare, pharmaceuticals, energy, manufacturing, construction, agri-food, defense, communications, and culture.

The EC plans to establish a network of AI-powered screening and diagnostic centers in healthcare and develop agentic AI systems in climate, manufacturing, and pharmaceuticals. The revealed strategy also aims to support the creation of sovereign European AI models to reduce reliance on non-European technologies in sensitive defense systems.

According to a Financial Times recent review of the draft, the Commission intends to allocate €1 billion ($1.1 billion) from existing EC programs to support startup grants, incentives for open-source generative AI, and public procurement reforms designed to stimulate market demand.

European Commission warns against dependence on foreign providers

The European Commission has urged developers across the EU region to develop open-source AI systems that can be used across the EU member states. The Commission said that open-sourcing AI technologies will promote interoperability and reduce dependency on proprietary platforms controlled by foreign technology providers.

The EC’s revealed proposal also warned against Europe’s overdependence on foreign providers for cloud computing resources, semiconductor materials, and software technologies. The proposal highlighted that governments or non-governmental agencies may exploit such dependencies. 

The European Commission acknowledged that President Donald Trump’s recent tariff targeting of European countries and global partners sparked a reliability concern for the EU region as a long-term technology partner.

China has also emerged as a worldwide competitor with rapid improvements in generative AI and the export of low-cost models, which the Commission views as a risk. The EC has therefore launched the initiative to accelerate the development of AI tools for military applications, such as command and control and space defense. 

Currently, AI systems for military applications depend on U.S. technologies under the NATO frameworks. Brussels is considering reducing the reliance on foreign technology, saying it is essential for strategic autonomy.

The strategy also seeks to introduce AI across the entire structure of European governance and industry. It urges reforms in public procurement to ensure AI is embedded in administrative operations and service delivery. The EC initiative also supports modernizing production processes, boosting research collaboration, and increasing resilience against external technology shocks in the industrial sector.

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