EU

AI use grows among EU enterprises in 2025

In 2025, one in five EU enterprises with at least ten employees reported using AI technologies, marking a significant rise from 13.5% in 2024. AI adoption has more than doubled since 2021, showing its increasing use in business across the EU.

Nordic countries led the way, with Denmark at 42%, Finland at 37.8%, and Sweden at 35%. In contrast, Romania, Poland, and Bulgaria had the lowest adoption rates, ranging from 5.2% to 8.5%.

Almost all EU member states recorded increases compared with the previous year, with Denmark, Finland, and Lithuania showing the most significant gains.

Enterprises mainly used AI to analyse text, generate multimedia, produce language, and convert speech into machine-readable formats. Analysing written language saw the most significant growth in 2025, followed by content generation, highlighting AI’s expanding role in communication and data processing.

Rising AI adoption is also linked to efficiency gains and innovation across EU businesses. Companies report using AI to streamline operations, support decision-making, and enhance customer engagement, signalling broader economic and technological impacts.

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EU supports Germany’s semiconductor expansion

The European Commission has approved €623 million in German support for two first-of-a-kind semiconductor factories in Dresden and Erfurt.

A funding that will help GlobalFoundries expand its site to create new wafer capacity and will assist X-FAB in building an open foundry designed for advanced micro-electromechanical systems.

Both projects aim to increase Europe’s strategic autonomy in chip production, rather than allowing dependence on non-European suppliers to deepen.

The facility planned by GlobalFoundries will adapt technologies developed under the IPCEI Microelectronics and Communication Technologies framework for dual-use needs in aerospace, defence and critical infrastructure.

The manufacturing process will take place entirely within the EU to meet strict security and reliability demands. X-FAB’s project will offer services that European firms, including start-ups and small companies, currently source from abroad.

A new plant that is expected to begin commercial operation by 2029 and will introduce manufacturing capabilities not yet available in Europe.

In return for public support, both companies will pursue innovation programmes, strengthen cross-border cooperation, and apply priority-rated orders during supply shortages, in line with the European Chips Act.

They will also develop training schemes to expand the pool of skilled workers, rather than relying on the limited existing capacity. Each company has committed to seeking recognition for its facilities as Open EU Foundries.

The Commission concluded that the aid packages comply with the EU State aid rules because they encourage essential economic activity, show apparent incentive effects and remain proportionate to funding gaps identified during assessment.

These measures form part of Europe’s broader shift toward a more resilient semiconductor ecosystem and follow earlier decisions supporting similar investments across member states.

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EU survey shows strong public backing for digital literacy in schools

A new Eurobarometer survey finds that Europeans want digital skills to hold the same status in schools as reading, mathematics and science.

Citizens view digital competence as essential for learning, future employment and informed participation in public life.

Nine in ten respondents believe that schools should guide pupils on how to handle the harmful effects of digital technologies on their mental health and well-being, rather than treating such issues as secondary concerns.

Most Europeans also support a more structured approach to online information. Eight in ten say digital literacy helps them avoid misinformation, while nearly nine in ten want teachers to be fully prepared to show students how to recognise false content.

A majority continues to favour restrictions on smartphones in schools, yet an even larger share supports the use of digital tools specifically designed for learning.

More than half find that AI brings both opportunities and risks for classrooms, which they believe should be examined in greater depth.

Almost half want the EU to shape standards for the use of educational technologies, including rules on AI and data protection.

The findings will inform the European Commission’s 2030 Roadmap on digital education and skills, scheduled for release next year as part of the Union of Skills initiative.

A survey carried out across all member states reflects a growing expectation that digital education should become a central pillar of Europe’s teaching systems, rather than an optional enhancement.

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Norges Bank says digital krone not required for now

Norway’s central bank has concluded that a central bank digital currency is not needed for now, ending several years of research and reaffirming that the country’s existing payment system remains secure, efficient, and widely used.

Norges Bank stated that it found no current requirement for a digital krone to maintain confidence in payments. Cash usage in Norway is among the lowest globally, but authorities argue the present system continues to serve consumers, merchants, and banks effectively.

The decision is not final. Governor Ida Wolden Bache said the assessment reflects timing rather than a rejection of CBDCs, noting the bank could introduce one if conditions change or if new risks emerge in the domestic payments landscape.

Norges Bank continues to examine both retail and wholesale models under the broader EU AI Act framework for digital resilience. It also sees potential in tokenisation, which could deliver efficiency gains and lower settlement risk even if a full CBDC is not introduced.

Experiments with tokenised platforms will continue in collaboration with industry partners. At the same time, the bank prepares a new report for early next year and monitors international work on shared digital currency infrastructure, including a possible digital €.

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EU advances ambitious gigafactory programme for AI leadership

The Council has agreed on a significant amendment to the EuroHPC Joint Undertaking regulation, aiming to establish AI gigafactories across Europe alongside a new quantum pillar.

The plan advances earlier efforts to build AI factories and redirects unused EU funds toward larger and more ambitious facilities. Up to five gigafactories are expected, supported through public and private partnerships that promise a stronger technological base for European research and industry.

AI gigafactories will combine high-performance computing, energy-efficient data centres and automated systems to give Europe world-class AI capacity. The regulation sets out firm rules for funding and procurement while protecting start-ups and scale-ups.

It also allows gigafactories to be spread across multiple countries, creating a flexible model that can strengthen European resilience, competitiveness and security instead of relying heavily on American or Chinese infrastructure.

An agreement that updates the governance of EuroHPC and introduces safeguards for participation from partners outside the EU. Quantum research and innovation activities will move from Horizon Europe to EuroHPC in order to consolidate work on critical technologies.

In a shift that aims to widen the impact of supercomputing and quantum infrastructure while supporting the development of essential skills for science and industry.

The next stage involves the European Parliament delivering its opinion on 17 December.

A final Council adoption will follow once legal and linguistic checks have been completed, marking a decisive step towards Europe’s new AI and quantum capability.

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China pushes global leadership on AI governance

Global discussions on artificial intelligence have multiplied, yet the world still lacks a coherent system to manage the technology’s risks. China is attempting to fill that gap by proposing a new World Artificial Intelligence Cooperation Organisation to coordinate regulation internationally.

Countries face mounting concerns over unsafe AI development, with the US relying on fragmented rules and voluntary commitments from tech firms. The EU has introduced binding obligations through its AI Act, although companies continue to push for weaker oversight.

China’s rapid rollout of safety requirements, including pre-deployment checks and watermarking of AI-generated content, is reshaping global standards as many firms overseas adopt Chinese open-weight models.

A coordinated international framework similar to the structure used for nuclear oversight could help governments verify compliance and stabilise the global AI landscape.

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EIB survey shows EU firms lead in investment, innovation and green transition

European firms continue to invest actively despite a volatile global environment, demonstrating resilience, innovation, and commitment to sustainability, according to the European Investment Bank (EIB) Group’s 2025 Investment Survey.

Across the EU, companies are expanding capacity, adopting advanced digital technologies, and pursuing green investment to strengthen competitiveness.

Spanish firms, for example, are optimistic about their sector, prioritising capacity growth, using generative AI, and investing in energy efficiency and climate risk insurance.

Digital transformation is accelerating across the continent. Austrian and Finnish firms stand out for their extensive adoption of generative AI and multiple advanced digital tools, while Belgian companies excel in integrating digital technologies alongside green initiatives.

Czech firms devote a larger share of investment to capacity expansion and innovation, with high engagement in international trade and strategic use of digital solutions. These trends are highlighted in country-level EIB reports and reflect broader European patterns.

The green transition remains central to corporate strategies. Many firms actively reduce emissions, improve energy efficiency, and view sustainability as a business opportunity rather than a regulatory burden.

In Belgium, investments in energy efficiency and waste reduction are among the highest in the EU, while nearly all Finnish companies report taking measures to reduce greenhouse gases.

Across Europe, firms increasingly combine environmental action with innovation to maintain competitiveness and resilience.

Challenges persist, including skills shortages, uncertainty, high energy costs, and regulatory complexity. Despite these obstacles, European businesses continue to innovate, expand, and embrace international trade.

EIB surveys show that firms are leveraging technology and green investments not only to navigate economic uncertainty but also to position themselves for long-term growth and strategic advantage in a changing global landscape.

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EU AI Act changes aim to ease high-risk compliance pressure

The European Commission has proposed a series of amendments to the EU AI Act to ensure a timely, smooth, and proportionate rollout of the bloc’s landmark AI rules.

Set out in the Digital Omnibus on AI published in November, the changes would delay some of the most demanding obligations of the AI Act, particularly for high-risk AI systems, linking compliance deadlines to the availability of supporting standards and guidance.

The proposal also introduces new grace periods for certain transparency requirements, especially for generative AI and deepfake systems, while leaving existing prohibitions on manipulative or exploitative uses of AI fully intact.

Other revisions include removing mandatory AI literacy requirements for providers and deployers and expanding the powers of the European AI Office, allowing it to directly supervise some general-purpose AI systems and AI embedded in large online platforms.

While the package includes simplification measures designed to ease burdens on smaller firms and encourage innovation, the amendments now face a complex legislative process, adding uncertainty for companies preparing to comply with the AI Act’s long-term obligations.

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Mitigated ads personalisation coming to Meta platforms in the EU

Meta has agreed to introduce a less personalised ads option for Facebook and Instagram users in the EU, as part of efforts to comply with the bloc’s Digital Markets Act and address concerns over data use and user consent.

Under the revised model, users will be able to access Meta’s social media platforms without agreeing to extensive personal data processing for fully personalised ads. Instead, they can opt for an alternative experience based on significantly reduced data inputs, resulting in more limited ad targeting.

The option is set to roll out across the EU from January 2026. It marks the first time Meta has offered users a clear choice between highly personalised advertising and a reduced-data model across its core platforms.

The change follows months of engagement between Meta and Brussels after the European Commission ruled in April that the company had breached the DMA. Regulators stated that Meta’s previous approach had failed to provide users with a genuine and effective choice over how their data was used for advertising.

Once implemented, the Commission said it will gather evidence and feedback from Meta, advertisers, publishers, and other stakeholders. The goal is to assess the extent to which the new option is adopted and whether it significantly reshapes competition and data practices in the EU digital advertising market.

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Google faces renewed EU scrutiny over AI competition

The European Commission has opened a formal antitrust investigation into whether AI features embedded in online search are being used to unfairly squeeze competitors in newly emerging digital markets shaped by generative AI.

The probe targets Alphabet-owned Google, focusing on allegations that the company imposes restrictive conditions on publishers and content creators while giving its own AI-driven services preferential placement over rival technologies and alternative search offerings.

Regulators are examining products such as AI Overviews and AI Mode, assessing how publisher content is reused within AI-generated summaries and whether media organisations are compensated in a clear, fair, and transparent manner.

EU competition chief Teresa Ribera said the European Commission’s action reflects a broader effort to protect online media and preserve competitive balance as artificial intelligence increasingly shapes how information is produced, discovered, and monetised.

The case adds to years of scrutiny by the European Commission over Google’s search and advertising businesses, even as the company proposes changes to its ad tech operations and continues to challenge earlier antitrust rulings.

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