The BDVA Task Force etami just released a market analysis, as Europe’s AI Market finds itself at a crossroads as regulation meets global competition. The European AI market finds itself at a decisive moment, shaped by the intersection of ambitious regulation, rapid technological change and intensifying international competition. With the adoption of the AI Act, the European Union has become the first jurisdiction to implement a comprehensive, risk-based framework governing AI. Together with the Data Act and the Data Governance Act, this legislation positions the EU not merely as a regulator, but as a potential global standard-setter in the governance of artificial intelligence.

Key priorities include mobilising capital at scale to close the growth-stage funding gap, simplifying and supporting compliance for small and medium-sized enterprises, and making sustained investments in the computing and data infrastructure that underpins modern AI. High-performance computing, interoperable and unified data spaces, and accessible shared resources will be essential foundations for future innovation.

Equally important is the need to retain and attract AI talent through targeted research funding, competitive incentives and clear career pathways. Europe’s cultural and linguistic diversity also represents an underexploited asset, particularly in the design of AI models suited to multilingual and multicultural contexts. International cooperation will play a central role, with partnerships among like-minded global actors helping to advance shared standards, research agendas and innovation outcomes.

If these priorities are executed effectively, Europe has an opportunity to align its ethical values with industrial capability. In doing so, it could consolidate a distinctive position in the global AI landscape — not simply as the world’s most comprehensive regulator, but as the leading hub for trustworthy, competitive and values-based AI.

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