From Principles to Power: Europe’s “AI Continent” Plan Signals a Strategic Turn
The European Commission has launched a new flagship strategy aimed at transforming the EU into a global leader in artificial intelligence. Titled the “AI Continent: Action Plan”, the initiative marks a clear evolution in the EU’s approach—moving from a primarily regulatory posture to one that prioritises deployment, investment, and infrastructure.
This shift comes on the heels of the formal adoption of the AI Act, the world’s first comprehensive legislation on artificial intelligence. But as other global players accelerate their AI ambitions, the Commission is acknowledging that rules alone won’t be enough. With this action plan, it is attempting to answer a growing chorus of voices asking whether Europe can not only regulate AI, but also lead in its design, development, and application.
A New Phase in Europe’s AI Strategy
The action plan focuses on four core areas that reflect Europe’s current shortcomings and potential strengths.
First, the Commission wants to accelerate AI deployment at scale, particularly in sectors where Europe already has strategic or technological advantages—such as healthcare, energy, manufacturing, agriculture, and public services. The emphasis here is on turning innovation into impact, with support for large-scale testing environments and real-world applications.
Second, the plan recognises the need to support AI startups and scaleups, particularly through improved access to finance. The European Investment Bank is expected to play a more active role in this space, helping to de-risk private investment through dedicated financial instruments and partnerships. Closing the funding gap between European AI firms and their U.S. or Chinese counterparts is a clear priority.
Third, the Commission is making a concerted push to address infrastructure gaps—from computing power to data access. The expansion of high-performance computing capabilities, together with new investments in common European data spaces, is aimed at providing the technical backbone needed to support AI development across the continent. A new initiative, referred to as “AI Factories,” will provide companies, especially SMEs, with access to compute resources, datasets, and technical expertise.
Fourth, the plan tackles the persistent issue of skills and talent. From vocational training to doctoral programmes, the Commission is proposing a range of measures to train, attract, and retain AI talent in Europe. A pan-European talent mobility programme will help ensure that expertise flows across borders and institutions, reinforcing the single market for AI.
More Than a Regulatory Union
This plan represents a broader strategic pivot. For the past several years, the EU has leaned heavily into its role as a global standard-setter—particularly around ethical AI. That work has been important, but it has also drawn criticism for prioritising rules over results. The “AI Continent” initiative acknowledges that credibility in the global AI space will depend not just on governance, but also on the EU’s capacity to innovate, invest, and scale. In other words, regulation must now be matched with a robust industrial and innovation policy.
Commissioner Thierry Breton was direct: “Europe’s AI future is not just about what we prohibit, but about what we build. We want European AI made in Europe and used globally.”
Implementation Will Be Key
The plan is ambitious, but the challenge now shifts to implementation. Member states will need to align national strategies with the Commission’s priorities. Funding mechanisms must reach the right actors—particularly startups, SMEs, and public sector institutions. And the newly established AI Excellence Board will need to maintain momentum and coordination across a fragmented policy landscape.
The Commission plans to issue a progress review in 2026, which will assess legislative follow-through and deployment milestones and investment impact.
Europe has laid the groundwork for trustworthy AI with a strong ethical and legal foundation. The “AI Continent” Action Plan is a statement of intent to now build on that foundation—to scale, compete, and lead. Whether Europe can deliver on this ambition will depend on political coordination, speed of execution, and the ability to translate policy into practice.
It is a significant step—and a necessary one—toward ensuring that European values are not just reflected in how AI is governed, but in how it is created and applied.
The recent StepUp Startups Policy Workshop: AI-Powered Innovation: Transforming Business Support Processes, marked the first event following the European Commission’s launch of the “AI Continent: Action Plan”, signaling a timely and meaningful start to the initiative’s implementation phase. As part of the consortium, SERN is proud to contribute to this strategic shift—helping ensure that startup voices and regional ecosystems are actively engaged in shaping Europe’s AI future.
