EU ramps up AI investment while warning over regulatory overload

The European Union is launching new initiatives to boost its artificial‑intelligence sector and reduce dependence on non‑European cloud and AI providers. A Polish MEP warns that excessive AI regulations and high energy costs are driving investors toward the United States and China, undermining Europe’s competitiveness. In response, the European Commission has presented a package aimed at strengthening technological sovereignty, including funding for AI research, development of a European cloud ecosystem, and support for semiconductor production under the planned Chips Act 2.0. The proposal seeks to shorten regulatory timelines for AI sandboxes to August 2027 and to tighten transparency rules for AI‑generated content, while also encouraging open‑source solutions and digitalisation of the energy sector. The measures are still subject to debate in the European Parliament and Council and could reshape the EU’s digital market if adopted.