Written by Maria Niestadt.
As the global race to harness the power of artificial intelligence (AI) accelerates, the European Union has set the objective of becoming a leading AI continent. The adoption of the Artificial Intelligence Act in 2024 was a milestone in establishing a comprehensive regulatory framework for AI in the EU, but regulation alone cannot make the EU a technological leader. In April 2025, the European Commission published an AI continent action plan, a communication that attempts to look beyond rules and combine regulatory oversight with investment, infrastructure and skills development. It also aims to increase the use of AI in both the private and public sector. The plan illustrates the Commission’s growing attention to competitiveness, moving away from its previous focus on setting usage rules
Despite progress in some areas, the EU is still far from being a global leader in AI, in terms of scale, investment, and uptake of AI. Structural weaknesses such as a fragmented single market, limited private investment, and reliance on foreign cloud and semiconductor technology continue to hinder progress. Stakeholders are divided on the road to follow. While industry representatives call for simplifying regulation to boost innovation, civil society warns against sacrificing democratic safeguards.
The EU’s prospects of becoming an AI continent depend not only on its ability to implement the AI continent action plan but also on its decisiveness in acting on other fronts such as making progress on the Savings and Investments Union, and its progress in reducing reliance on foreign technologies. The European Parliament will play a central role in scrutinising the Commission’s activities and shaping legislation such as the forthcoming Cloud and AI Development Act.
Read the complete briefing on ‘Making Europe an AI continent‘ in the Think Tank pages of the European Parliament.
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