AI Policy Day: Scaling AI in Europe – Strengths, Challenges and the Path to Scale  | EU-Startups

On 11 December 2025, EU-Startups participated in the AI Policy Day: Scaling AI in Europe hosted by the European Commission – a full-day high-level event organised with the support of the StepUp StartUps initiatives, Innovation Radar Bridge, and convened at the AI House, in Amsterdam. 

The event brought together policymakers, startup founders, corporate leaders, investors and researchers for constructive discussions on how Europe can accelerate adoption of AI while preserving its values of responsibility and trustworthiness. 

Throughout the day, discussions converged on a shared assessment: Europe’s position in AI is stronger than it is often perceived. Participants pointed to the continent’s solid research base, well-established industrial ecosystems and an expanding network of AI hubs as key assets for long-term competitiveness.

Discussions also reflected a broad consensus that regulation, including the EU AI Act, is not viewed as a barrier to innovation. Instead, many participants emphasised its role in fostering trust, providing legal certainty and enabling responsible AI deployment. Clear and coherent regulatory frameworks were widely seen as a factor that can support competitiveness, alongside ongoing efforts to ensure proportionate and efficient implementation that facilitates innovation and market uptake.

The discussions highlighted Europe’s structural strengths in AI, including its strong research base, established industrial ecosystems, specialised talent pipelines and access to sector-specific data.

Backed up by recent data, it appears that especially when it comes to AI talent, Europe is already in a leading position. The combination of these assets has the potential of enabling Europe to advance domain-focused and agentic AI solutions, particularly in complex and regulated sectors. 

At the same time, participants acknowledged persistent challenges in scaling AI companies, especially regarding late-stage investment.

While early-stage funding is relatively well-developed, securing financing rounds above €100 million remains difficult. Discussions therefore focused on improving access to growth capital, including through greater mobilisation of institutional investors and stronger alignment of public and private financing instruments.

The StepUp StartUps consortium, together with the Innovation Radar Bridge, played a central role in shaping the event’s content and analytical focus.

This EU-funded initiative brings together partners including Barrabes.biz, DEEP Ecosystems, Leibniz Institute for Research on Society and Space (IRS), Startup Europe Regions Network (SERN), and EU Startups, with the support of the European Startup Nations Alliance (ESNA).

Through a series of data-driven reports on key AI ecosystem dynamics – ranging from talent development to scale-up investment gaps – the consortium provided evidence-based insights that informed and structured the discussions throughout the day. 

The programme featured contributions from a wide range of stakeholders, including Marietje Schaake, International Policy Director at Stanford University; Eoghan O’Neill, Senior Policy Officer at the European Commission; Marc Zegveld, Managing Director, TNO as well as representatives from the research, investment and legal communities actively engaged in shaping Europe’s AI landscape. 

Overall, discussions on policy, talent and investment were marked by a constructive and forward-looking tone, reflecting a shared commitment to advancing AI adoption in ways that strengthen Europe’s competitiveness while upholding its values and delivering societal benefits.

The AI Policy Day reaffirmed the importance of continued dialogue between policymakers and ecosystem actors as Europe works to translate its AI strengths into scaled sustainable impact.