EU Commission cheers for new progress in AI as calls to bridge investment gaps intensify

The European Court of Auditors has called for more activism on aspects related to the regulatory and investment framework of Artificial Intelligence development. The EU plans on this disruptive technology are well aligned with international best practices and have shown progress since their inception, the member of the European Court of Auditors, Mihails Kozlovs, stated during a debate by the Internal Market Committee in the European Parliament on December 3rd, 2024.

The EU Auditors demand a new legislative initiative that addresses the key concerns that the recently approved legislation on AI did not tackle. He mentioned the insufficient governance tools for coordinating AI investments, delays in deploying AI enablers funded by the EU budget, and inadequate mechanisms for monitoring research and innovation outcomes. Over the past four years, over 6.7 billion euros has been allocated to AI through Digital and Horizon Europe funding.

A recent study from the European Parliament found that between 2018 and the third quarter of 2023, almost 32.5 billion euros were invested in EU AI companies, compared with more than 120 billion in AI companies operating in the US. Recent investments in US AI companies (e.g., OpenAI and Anthropic) have widened the gap between the EU’s and the US’s relative share of private investment in AI.

EU’s lagging position in AI leadership must first be charged to the investment gaps. The EPP is asking for estimates on required investment levels and a strong commitment to delivering frequent assessments of funding needs.

The Hungarian European People’s Party member Dora David advocated the need to enhance the commercialization of EU-funded AI projects. The Greens emphasized for the mouth of Alexandra Geese the need for performance criteria to ensure that AI technologies deliver scalable and market-ready solutions.

Thierry Boulangé, Deputy Head of the Unit for Artificial Intelligence Policy Development at the European Commission, ensured that the reassessment of investment targets is ongoing. The EU Executive is insisting on the need to create favorable conditions for investment and a more stable balance between administrative burdens and effective monitoring of performance criteria.

The key performance indicators (KPIs) that the European Commission is asked to develop are supposed to act as a good basis for developing a fertile ground for large EU companies in this sector.

The Commission has already awarded seven proposals in the context of the process of setting up the so-called “AI Factories,” the project aiming at creating the EU’s world-class network of European High-Performance Computing. While listing her priorities for her second mandate at the helm of the EU Commission, President Ursula von der Leyen also announced an Apply AI Strategy “to boost new industrial uses of AI” and the set up of a European AI Research Council.