Europe's AI Strategy: Trends and Impact on Global Business
Becoming a world leader in artificial intelligence is the goal of the AI Continent Action Plan launched by the European Commission. This initiative aims to transform Europe’s traditional industries into engines of AI innovation and acceleration. The AI landscape in the EU is dynamic, fueled by research, emerging technologies, and a thriving ecosystem of start-ups and scale-ups.
Thirteen AI Gigafactories
The Commission is enhancing Europe’s AI and supercomputer infrastructure with a network of AI factories. Thirteen of these factories are being rolled out around Europe’s leading supercomputers, supporting AI start-ups, industry, and researchers in developing AI models and applications. The EU is also involved in establishing AI gigafactories, which are large-scale facilities equipped with around 100,000 advanced AI chips—four times more than current AI factories. These facilities will integrate vast computing power and data centers to train and develop complex AI models on an unprecedented scale.
Tripling Data Center Capacity
Both public and private investments are essential for the gigafactories. The Commission's InvestAI initiative aims to mobilize twenty billion euros for a maximum of five AI gigafactories in the Union. Alongside this, a Cloud and AI Development Act is proposed to stimulate private sector investment in cloud capacity and data centers, with the goal of tripling the EU’s data center capacity in the next five to seven years, focusing on highly sustainable data centers.
Access to large volumes of high-quality data is crucial for stimulating AI innovation. An important component of the action plan is the establishment of Data Labs, which will aggregate large data sets from various sources. A comprehensive Data Union strategy is set to be launched in 2025 to create a true internal market for data, enabling large-scale AI solutions.
Stimulating AI Use by Companies
Currently, only 13.5 percent of companies in the EU utilize AI technology. The Commission will launch the Apply AI strategy to promote industrial use, leveraging the European AI innovation infrastructure, particularly AI factories and the European Digital Innovation Hubs. Efforts will be made to facilitate the international recruitment of AI experts and researchers to meet the growing demand for talent in the sector. Education and training programs will focus on AI and Generative AI to prepare the next generation of AI specialists.
The AI Act offers legal certainty for investors and entrepreneurs to scale up and apply AI in Europe. The Commission will establish the AI Act Service Desk as a central point of contact for guidelines and support concerning the AI Act. Public consultations will be held to refine the initiatives of the AI Continent Action Plan.
Dialogue with Industry and the Public Sector
The Commission will engage in dialogues with industry and public sector representatives to shape the Apply AI strategy. These discussions, along with public consultations, will identify examples of untapped potential in applying AI technologies across sectors, their current integration into business processes, and opportunities for scaling up.
Data with Destiny: European AI M&A Heats Up
Europe’s AI industry is gaining traction, but it still lags behind the US, which attracted US$110 billion in venture capital in 2024, claiming 74 percent of it. Europe’s share was US$12.8 billion, indicating steady progress but highlighting an investment gap. The AI market in Europe is expected to reach US$58.1 billion in 2025 and grow to US$235.5 billion by 2031, with a compound annual growth rate of nearly 26.3 percent.
Deal Surge
The competition for AI dominance is driving a dealmaking boom. In 2023, 49 AI deals totaled $480 million, while in 2024, 45 deals more than doubled that figure to US$1.1 billion. The first quarter of 2025 recorded ten deals worth US$160.8 million, doubling Q1 2024’s figures. Advanced Micro Devices led Europe’s largest AI deal to date, acquiring Finland’s Silo AI for US$665 million.
The second-largest deal was a US$100 million Series C round for Cognigy, aimed at accelerating international expansion. In February 2025, Luminance raised US$75 million in a Series C led by Point72, addressing efficiency needs in corporate legal departments through AI-driven automation.
Equipping to Compete
The burgeoning AI dealmaking market stems from businesses seeking productivity gains and growth opportunities. Companies are acquiring advanced technology to remain competitive, with generative AI being a hot target. The scarcity of AI talent is prompting "acqui-hiring," where big tech firms are acquiring European researchers to bolster their teams.
Europe has a notable edge in AI talent, boasting a higher per-capita concentration of AI experts compared to the US and China. However, retaining this talent is challenging, as many researchers are drawn to US tech giants. Initiatives like Germany’s AI Strategy aim to combat this brain drain.
Speed Bumps Ahead
The road forward is complicated by the EU AI Act, effective beginning in 2025, which introduces compliance costs and operational limits. Companies must conduct risk assessments for AI in various sectors, including healthcare and retail finance, potentially slowing down deal timelines. Additionally, ESG concerns regarding AI's energy consumption and ethical data use add pressure to compliance efforts.
How AI Will Shape Global Business Expansion in 2024: Top Trends
The translation and localization industry is set for transformative growth in 2024, driven by advancements in AI and large language models (LLMs). An independent survey of 2,000 business leaders revealed that 73 percent are excited about the potential of AI for business expansion.
AI-Driven Localization Will Power Personalized Customer Experiences
Currently, over half (61 percent) of businesses globally do not use AI for personalized customer engagement. However, as AI and LLMs evolve, organizations will increasingly leverage these technologies to enhance customer interaction and reach.
In 2024, businesses will prioritize real-time communication, with over half (52 percent) admitting they do not currently communicate in real time in their customers' languages. Moreover, 55 percent of business leaders report losing business due to inadequate translation and localization strategies.
Localization Will Take Center Stage
More than three-quarters (79 percent) of business leaders foresee the role of translation and localization evolving significantly in their business strategies within the next three years. This shift indicates that localization will be crucial for global expansion, representing a key factor in driving growth and connecting authentically with international customers.
AI’s Impact On Growth Marketing Organizations
AI is transforming marketing workflows by providing clarity and tools that enhance efficiency. This integration allows marketers to focus on creative tasks rather than administrative processes.
Where AI Is Creating Efficiencies
AI is increasingly being adopted within marketing teams but remains largely isolated within specific functions. For design teams, AI accelerates ideation and approval processes, optimizes creative assets for various channels, and taps into emerging visual trends.
For growth and product marketing teams, AI enhances competitive analysis, A/B testing, data collection, and helps establish clearer customer profiles through digital twins.
Future Marketing Organization Structures
As companies explore the best ways to leverage AI, marketing structures are evolving. Organizations are beginning to adopt more fluid designs that integrate human talent with AI to maximize impact.
In this evolving structure, teams can focus on market shaping, customer journey innovation, and brand evolution, all while leveraging AI to manage routine tasks efficiently. Emerging roles such as AI Solutions Directors are being developed to identify high-impact use cases and ensure value generation across portfolios.
Overall, the integration of AI into business strategies is becoming increasingly vital for success in the global marketplace.
