Policy experts question EU’s AI plan and Eurostack

Geopolitical uncertainties have inspired calls in the EU for more technological sovereignty with the economic bloc releasing a new AI strategy and mulling over building its own digital infrastructure in the form of a Eurostack. Analysts and researchers, however, are highlighting gaps and inefficiencies in the EU’s plans.

Eurostack as a wall against migrants

Among the solutions that have recently been floated among entrepreneurs, academics and policy experts is Eurostack –  a core technology infrastructure that would include everything from digital ID, AI and data platforms to semiconductors, networks and cloud computing.

The Eurostack concept carries many similarities with the IndiaStack, built on India’s Aadhaar digital ID system. But it also must look at issues such as digital borders and the place of migrants within the EU’s digital infrastructure, according to Rohan Pai, a research associate at the Aapti Institute in Bengaluru, India.

The institute has previously worked on similar problems, exploring how labor migrants from Nepal faced difficulties registering for India’s Aadhaar. While these issues were eventually solved through collaboration between these countries, Pai sees potential in Europe to use its digital infrastructure to exclude migrants.

The EU Digital Identity (EUDI) Wallet project, for instance, has a “severe lack of clarity” on how people from non-EU countries will be granted access. The EU could also weaponize its digital infrastructure as a tool for migration policy, perpetuating exclusionary practices that have been common in the EU’s border policies, Pai argues for Tech Policy Press.

“With the introduction of the EuroStack, there is a growing risk that state powers over digital borders will extend further,” he says. “While digital borders are a means to control the movement of people, the EuroStack will result in member states being able to escalate such restrictions into other domains, adding another layer to the digitally fortified state.”

Is the AI Continent Action Plan enough for EU?

While the Eurostack remains just an idea for now, the EU has been making concrete moves when it comes to AI. Earlier this month, the European Commission unveiled the AI Continent Action Plan, the continent’s biggest strategy yet for increasing tech competitiveness with China and the U.S.

The plan, however, organizes and amplifies existing initiatives but does not introduce fundamentally new strategies, according to Laura Caroli, a senior fellow of the Wadhwani AI Center at the Center for Strategic and International Studies (CSIS). Its real impact will depend on future budget allocations, which will be revealed at the Multiannual Financial Framework 2028–2034, expected in the fall of 2025.

The Action Plan targets five major goals: Increasing AI data and computing infrastructure through AI factories, boosting access to data, developing algorithms, fostering AI adoption, strengthening AI skills and talents, and finally, simplifying regulations such as the EU AI Act.

The heart of the plan is the AI factories and gigafactories. Earlier this year, the EU pledged to invest 200 billion euros (US$223.7 million) through the InvestAI initiative, including a new European fund of 20 billion euros ($22.3 million) to mobilize investment into five AI gigafactories. The initiative, however, will take months to be launched and even longer to be accomplished, says Caroli.

The simplification of the AI Act has also been toned down, with the EU planning only support services and consultations for now. There is also little concrete action on open-source AI, and the focus on massive infrastructure may overlook Europe’s emerging strength in efficient, smaller AI models, Caroli concludes.

Other policy experts have pointed out that the Action Plan’s broad scope may hinder effectiveness, while questions remain around the Commission’s regulatory role. The industry, however, seems to be greeting the initiative, with companies such as Telefónica embracing the call for companies to play a major role in Europe’s AI future.

Article Topics

AI  |  AI Continent Action Plan  |  cybersecurity  |  Europe  |  European Commission  |  EuroStack