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EU rolls out $1.1 billion plan to ramp up AI in key industries amid sovereignty drive

Published by Global Banking & Finance Review

Posted on October 8, 2025

2 min read

· Last updated: January 21, 2026

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EU rolls out $1.1 billion plan to ramp up AI in key industries amid sovereignty drive
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By Foo Yun Chee and Inti Landauro BRUSSELS (Reuters) -The European Commission on Wednesday announced a 1-billion-euro ($1.1 billion) plan to ramp up the use of artificial intelligence in key

EU Unveils $1.1 Billion Initiative to Boost AI in Key Industries

By Foo Yun Chee and Inti Landauro

BRUSSELS (Reuters) -The European Commission on Wednesday announced a 1-billion-euro ($1.1 billion) plan to ramp up the use of artificial intelligence in key industries amid a push to cut the European Union's reliance on U.S. and Chinese technologies.

The EU executive's Apply AI strategy followed an action plan unveiled in April which seeks to lighten the regulatory burden and costs for startups struggling to comply with landmark AI rules which entered into force in August last year.

The move also underscores Europe's goal of achieving strategic autonomy in key sectors amid trade tensions with the United States and China and the dominance of U.S. Big Tech.

"I want the future of AI to be made in Europe," Commission President Ursula von der Leyen said in a statement.

"AI adoption needs to be widespread, and with these strategies, we will help speed up the process. We will drive this 'AI first' mindset across all our key sectors, from robotics to healthcare, energy and automotive," she said.

The Commission singled out healthcare, pharmaceuticals, energy, mobility, manufacturing, construction, agri-food, defence, communications and culture as critical sectors that should use more AI.

Sector-specific measures under the Apply AI strategy include setting up a network of AI-powered advanced screening centres in healthcare and developing agentic AI in manufacturing, climate and pharmaceutical industries.

The 1 billion euros will come from EU research projects such as Horizon Europe and the Digital Europe programme, which may encourage EU countries and the private sector to provide matching funds, the Commission said.

($1 = 0.8569 euros)

(Reporting by Foo Yun Chee, Editing by Jan Strupczewski, Charlotte Van Campenhout)

Key Takeaways

  • The EU plans a $1.1 billion AI initiative.
  • Focus on reducing reliance on US and Chinese tech.
  • Targeted sectors include healthcare and automotive.
  • Funding from Horizon Europe and Digital Europe.
  • Aims for strategic autonomy in key industries.

Frequently Asked Questions

What is artificial intelligence?
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn. AI can perform tasks such as speech recognition, decision-making, and problem-solving.
What is the European Commission?
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
What is strategic autonomy?
Strategic autonomy refers to the ability of a region or country to make independent decisions and pursue its interests without relying heavily on external powers.

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