Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
EU Court of Auditors Finds AI Investment Challenges
AI | Nov 5, 2024
Image: Court of Auditors Report (VC Investment in AI)
EU AI Investment Shortfalls Highlight Need for Urgent Action
The European Union (EU) wants to be a leader in artificial intelligence (AI) but a recent review by the EU Court of Auditors (68 page PDF report) found big challenges including low investment, varied progress between countries, and delays in helping small businesses are slowing things down. Here’s a quick look at what's happening with AI in the EU:
- By 2022, the EU's investment into AI was €20 billion compared with the United State's $50 billion investment to date. The report shows a big gap that needs to be addressed if the EU wants to keep pace. EU venture capital investments in AI are only about a third of those in the US and less than half of China’s.
See: ESMA Releases Statement on AI in Retail Investment Services
- While it can be expected to some degree, there's an uneven progress in AI between countries. Some countries are doing well leading AI investments such as France (investing €3 billion) and Germany (€5 billion) but others like Bulgaria, Croatia, Greece, and Romania don't yet have clear AI plans leading to inconsistencies across the EU.
- Although there's a formal budget of €1.5 billion for Testing and Experimentation Facilities only €110.8 million has been committed so far. This delayed funding is an important resource that's constrained for small businesses, so many European Digital Innovation Hubs that were planned are not fully up and running.
What's Causing the Challenges and Auditor Recommendations
Well the auditor pointed out a few reasons. First, the investment goals for AI weren’t clear or updated making it hard to track progress and accountability. Second, weak coordination between the EU Commission and member countries leading to fragmented efforts. Some countries still did not have a proper AI strategy as recent as 2023. Lastly, delays in building the required infrastructure (especially for small businesses) held things back further.
- The EU needs to create clear and specific targets for AI investment and follow-up with annual benchmarking to track progress and hold everyone accountable and committed to the AI strategy.
See: EU Grants Final Approval of AI Act, Effective 2026
- Better coordination is needed between the EU Commission and members so that all countries have solid AI plans and work together effectively.
- More funding support and faster deployment to get resources, programs, and hubs fully mobilized.
Outlook
As massive corporations and governments around the world invest heavily in AI, the EU must quickly work to close the investment gap to boost innovation and positioning itself as a global AI leader.
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