The EU stands at a critical crossroads in AI development. While U.S. companies dominate the generative AI (GenAI) market—capturing 80% of global private investment—China is advancing rapidly. To identify what is needed to ensure Europe remains competitive, the European Economic and Social Committee (EESC) has published a new study in collaboration with the Centre for European Policy Studies (CEPS).

Prepared under the umbrella of the EESC’s Section for the Single Market, Production and Consumption (INT) and regularly discussed at the EESC's Digital Single Market Observatory, the study explores the key opportunities, challenges and policy measures needed to augment Europe’s AI landscape.

Key Recommendations for the EU:

• Boost AI investment & computing power – Europe must increase investment in AI infrastructure to foster innovation.
• Focus on three high-potential sectors – AI can drive growth in the car industry, clean energy and education.
• Promote open-source AI – Encouraging open AI models will enhance accessibility and competition.
• Better integrate R&D efforts across the EU.

Empowering Civil Society in AI Governance
The study highlights the importance of civil society organisations (CSOs) in shaping AI policies and governance. To enhance inclusivity and ethical AI adoption, the report recommends:

• AI literacy programmes – Training and social dialogue initiatives to empower workers and the public.
• "Social by Design" approach – Ensuring AI development is human-centred and aligned with society's needs.
• Increased funding for CSOs – Supporting non-profits that bridge the gap between AI technology and public understanding.
• Ethical AI adoption – Prioritising trustworthy AI systems that align with European values.

Harnessing the EESC’s Potential in AI Policy
The EESC is well-positioned to facilitate structured CSO involvement in AI policy. The study recommends advocating open-source AI and promoting ethical innovation through public procurement and funding schemes, with the EESC serving as a central hub to collaborate with CSOs and open-source communities and raising awareness about AI´s impact on society.

The study also introduces a unified AI glossary to establish a common language, ensuring effective communication among policy-makers, developers and users—crucial for responsible development, governance and deployment of AI across sectors.

This study will be shared with key EU institutions and is expected to feed into future AI policies. Read the full report here. (vk)