An accelerated development and deployment of advanced and trustworthy AI in Europe is a pre-condition for Europe’s future competitiveness and prosperity. The package presented today is a milestone along the way to achieving this ambition, leveraging the opportunity provided by AI while addressing the associated risks.. Swift and decisive action by the European Union, the European Parliament and Member States will be necessary to turn ambition into reality.

Building on the EU’s economic and regulatory powers, joint actions, coordination and investments have an enormous potential to provide European industry with a competitive edge and to boost the internal market. Furthermore, EU action can facilitate the adoption of EU standards for trustworthy AI globally and ensure that the development, uptake and dissemination of AI is sustainable and based on the values, principles and rights protected in the EU to the benefit of all individuals and our environment.

Fourth, advance in building strategic leadership in high-impact sectors , including climate change and the environment, health, the public sector, robotics, mobility, security and home affairs, and agriculture.

Third, ensure that AI works for people and is a force for good in society. The Commission will continue to take actions to ensure that AI developed and put on the market in the EU is human-centric, sustainable, secure, inclusive, accessible and trustworthy. To achieve these goals, the regulatory framework to ensure trust in AI systems while promoting the EU’s value-based approach to AI on the global stage is key. Member States are also strongly encouraged to nurture talent and improve the supply of skills necessary to enable the development of trustworthy AI.

Second, make the EU the place where excellence thrives from the lab to the market. Hence, the Commission will focus on funding networks of AI excellence centres and set up a European Partnership on AI, Data and Robotics under Horizon Europe to facilitate excellence in research. To ensure testing and experimentation are available for innovation and rapid uptake, Member States, in collaboration with the Commission, will co-fund through the Digital Europe programme innovative AI testing and experimentation facilities, as well as a network of European Digital Innovation Hubs that will help SMEs and public administrations to take up AI.

First, set enabling conditions for AI’s development and uptake in the EU by focusing on a cooperation framework and data and computing infrastructure. The enabling conditions need to be designed in an SME-friendly way to enable small companies to play their role in developing and deploying AI on EU-wide scale. Member States, in collaboration with the EU, are encouraged to accelerate actions proposed in national AI strategies, making use of the RRF and Cohesion Funds when necessary. This includes investing in the enabling infrastructure, such as data spaces and computing resources.

The 2021 review of the coordinated plan is an opportunity to generate further European added value and strengthen the global role of the EU on AI. It puts forward four key sets of suggestions on how the European Commission, together with Member States and private actors, can accelerate, act and align to seize the opportunities AI technologies offer and to facilitate the European approach to AI. These four key sets of suggestions are described here below.

That is why in 2018 the European Commission and the Member States committed to work together and adopted the coordinated plan on AI as a first step. The coordinated plan laid the foundation for policy coordination on AI and encouraged Member States to develop national strategies. However, since the coordinated plan’s adoption at the end of 2018, the technological, economic and policy context on AI has considerably evolved. Accordingly, to remain agile and fit for the purpose, the Commission is here presenting the 2021 review of the coordinated plan .

AI is a set of technologies of strategic relevance and the European Union must act as one to harness the benefits of AI. To succeed, the coordination of AI policy and investments at the European level is essential. This will enable the latest technologies to be developed and adopted through Europe’s global competitiveness and leadership. Such coordination will allow Europe to seize the benefits of AI for the economy, society and the environment and help to promote European values worldwide.

Under the proposed regulation, other uses of AI systems are only subject to minimal transparency requirements, for example in the case of chatbots, emotion recognition systems or deep fakes. This will allow people to make informed choices or withdraw from a given situation. Finally, the proposed regulation will encourage the use of regulatory sandboxes establishing a controlled environment to test innovative technologies for a limited time, access to Digital Innovation Hubs and access to testing and experimentation facilities, which will help innovative companies, SMEs and start-ups to continue innovating in compliance with the new draft regulation. Further steps on extending the system of sandboxes may be considered as part of the review of the Regulation.

For the specific case of remote biometric identification systems (e.g. facial recognition tools to check passers-by in public spaces), the proposed regulation establishes a stricter approach. The real-time use for law enforcement purposes would in principle be prohibited in publicly accessible spaces, unless when exceptionally authorised by law. Any authorisation is subject to specific safeguards. In addition, all AI systems intended to be used for remote biometric identification of natural persons must undergo an ex ante conformity assessment procedure by a notified body to check compliance with the requirements for high-risk AI systems, and will be subject to stricter logging and human oversight requirements.

The proposed draft regulation lays down a ban on a limited set of uses of AI that contravene European Union values or violate fundamental rights. The prohibition covers AI systems that distort a person’s behaviour through subliminal techniques or by exploiting specific vulnerabilities in ways that cause or are likely to cause physical or psychological harm. It also covers general purpose social scoring of AI systems by public authorities.

Thirdly, the proposal provides that high-risk AI systems need to respect a set of specifically designed requirements, which include the use of high-quality datasets, the establishment of appropriate documentation to enhance traceability, the sharing of adequate information with the user, the design and implementation of appropriate human oversight measures, and the achievement of the highest standards in terms of robustness, safety, cybersecurity and accuracy. High-risk AI systems must be assessed for conformity with these requirements before being placed on the market or put into service. To smoothly integrate with existing legal frameworks the proposal takes account, where relevant, of the sectorial rules for safety, ensuring coherence between the legal acts and simplification for economic operators.

Secondly, to avoid regulatory overreach, the proposal focuses on so–called ‘high-risk’ AI use cases, i.e. where the risks that the AI systems pose are particularly high. Whether an AI system is classified as high-risk depends on its intended purpose of the system and on the severity of the possible harm and the probability of its occurrence. High-risk systems include, for example, AI systems intended to be used to recruit people or evaluate their creditworthiness or for judicial decision making. To ensure that the rules are future-proof and can be adjusted to emerging uses and applications of high-risk AI systems, the possibility exists to classify new AI systems as high-risk within certain predefined areas of use.

The proposed AI regulation puts forward rules to enhance transparency and minimise risks to safety and fundamental rights before AI systems can be used in the European Union. Its architecture is based on a number of core components which, as a whole, build a proportionate and risk-based European regulatory approach. Firstly, it provides for a technology-neutral definition of AI systems that is future-proof, to the extent that it can cover techniques and approaches which are not yet known or developed.

By earning people’s trust, the envisaged risk-based legislation should foster the uptake of AI across Europe and boost Europe’s competitiveness. The Commission’s proposal therefore pursues the twin objectives of addressing the risks associated with specific AI applications in a proportionate manner and of promoting the uptake of AI. To be future-proof and innovation-friendly, the proposed legal framework is designed to intervene only where this is strictly needed and in a way that minimises the burden for economic operators, with a light governance structure.

As set out in the White Paper on AI, and largely confirmed by the public consultation that followed, the use of AI creates a number of specific high risks for which existing legislation is insufficient. While there is already a solid framework of legislation in place at EU and national level to protect fundamental rights and ensure safety and consumer rights, including in particular the General Data Protection Regulation and the ‘Law Enforcement Directive’, certain specific features of AI technologies (e.g. opacity) can make the application and enforcement of such legislation more challenging and generate high risks for which a tailored regulatory response is needed. Therefore, the proposal introduces a set of harmonised rules applicable to the design, development and use of certain high-risk AI systems, as well as restrictions on certain uses of remote biometric identification systems.

Combining the two work strands, the Commission’s White Paper on AI was published together with a report on the safety and liability aspects of AI, the Internet of Things (IoT) and robotics . The White Paper proposes a number of measures to foster an ecosystem of excellence, leading up to today’s revision of the coordinated plan. Likewise, the White paper also set out policy options for a future EU regulatory framework to safeguard an ecosystem of trust in Europe, setting the scene for today’s proposal for a regulatory framework for AI. The public consultation on the White Paper on AI , which ran from February to June 2020, received widespread participation, enabling European citizens, Member States and stakeholders to provide their inputs and help to shape the EU’s approach and policy options for AI.

The package published today is the outcome of 3 years of intense policymaking on AI at European level. Following the publication by the European Commission of the European strategy on AI in April 2018 and after extensive stakeholder consultation, the High-Level Expert Group on Artificial Intelligence (HLEG) developed Guidelines for Trustworthy AI in April 2019, and an Assessment List for Trustworthy AI (ALTAI) in July 2020. In addition, the AI Alliance was formed as a platform for approximately 4 000 stakeholders to debate the technological and societal implications of AI, culminating in a yearly AI Assembly. In parallel, the first coordinated plan on AI published in December 2018 represents a joint commitment with Member States to foster the development and use of AI in Europe and to coordinate European and national efforts on AI.

The coordinated plan and the proposal for a regulatory framework are part of the European Union’s efforts to bean active player in international and multilateral fora in the field of digital technologies and a global leader in the promotion of trustworthy AI, and to ensure consistency between the EU’s external actions and its internal policies. On the global stage, AI has become an area of strategic importance at the crossroads of geopolitics, commercial stakes and security concerns. Countries around the world are choosing to use AI as a means of technical advancement due to its utility and potential. AI regulation is in its infancy and the stakes are high for the EU to spearhead the development of new ambitious global norms, AI-related international standardisation initiatives and cooperation frameworks, in line with the rules-based multilateral system and the values it upholds. In line with the Joint Communication on strengthening the EU’s contribution to rules-based multilateralism, the EU intends to deepen partnerships, coalitions and alliances with third countries – notably likeminded partners – as well as multilateral and regional organisations. It also intends to engage in issue-based cooperation with other countries, and to push back where those values are threatened.

Reacting to these challenges in AI, the European Parliament and the European Council have repeatedly called for legislative action to ensure a well-functioning internal market for AI systems where both the benefits and the risks of AI are appropriately addressed in a manner that will stand the test of time. The Commission’s proposal for a regulatory framework on AI represents a key juncture in the journey towards protecting safety and fundamental rights and hence ensuring trust in the development and uptake of AI.

At the same time, the use of AI also creates risks that need to be addressed. Certain characteristics of AI, such as the opacity of many algorithms that makes investigating causal relationships difficult, pose specific and potentially high risks to the safety and fundamental rights that existing legislation is unable to address or in view of which it is challenging to enforce existing legislation. For example, it is often not possible to determine why an AI system has arrived at a specific result. As a consequence, it may become difficult to assess and prove whether someone has been unfairly disadvantaged by the use of AI systems, for example in a recruitment or promotion decision or an application for a public benefit scheme . The use of AI systems may leave affected people with significant difficulties to correct erroneous decisions. Facial recognition in public spaces can have a very intrusive effect on privacy unless properly regulated. In addition, poor training and design of AI systems can result in significant errors that may undermine privacy and non-discrimination . AI-enabled robots and intelligent systems must be engineered and designed to meet the same high standards of safety and protection of fundamental rights for traditional technologies provided for by European law.

To harness the benefits of AI, Europe can build upon its existing strengths. Europe has a world-leading position in robotics and competitive industrial ecosystems. These assets, together with an increasingly performant computing infrastructure (e.g. high-performance computers) and large volumes of public and industrial data, put Europe in a position of being able to create world-leading AI capabilities on the back of its excellent research centres and an increasing number of innovative start-ups. To leverage these strengths with available funding, EU Member States and the Commission will pool expertise, coordinate actions and jointly mobilise additional resources. For this purpose, building on the cooperation it has developed with the Member States since 2018, the Commission is today presenting a revised coordinated plan on AI.

AI can significantly contribute to the objectives of the EU Security Union strategy. It can be a strategic tool to counter current threats and to anticipate both future risks – including hybrid threats – and opportunities. AI can help to fight crime and terrorism, and enable law enforcement to keep pace with the fast developing technologies used by criminals and their cross-border activities..

Strengthening capabilities in AI will help build up greater resilience to future shocks, since European companies will dispose of sufficient expertise to rapidly apply AI to new challenges. Moreover, AI can significantly contribute to the European Green Deal objectives, helping industry, companies, public authorities and citizens make more sustainable choices to integrate renewables in the energy system through smarter grid management, or to reduce greenhouse gas emissions through smart mobility, an optimised use of resources, precision farming, to name but a few.

AI and other digital technologies can contribute to a sustained post COVID-19 recovery due to their potential for increasing productivity across all economic sectors, creating new markets and bringing tremendous opportunities for Europe’s economic growth. AI technologies help optimise industrial processes, make them more resilient, efficient and greener, and enable innovative self-learning and real-time solutions, from predictive maintenance to collaborative robots, from digital twins to augmented reality. New business opportunities and increased economic dynamism are expected to create new employment opportunities and outweigh the potential job losses. AI can contributute to enhance opportunities for persons with disabilities and older persons to live independently by providing assistive and supportive solutions. In addition, AI has the potential to play a major role in informing citizens and enhancing citizens’ engagement initiatives.

The RRF can be used to expected to boost Member States’investments in AI and support leading research, innovation and testing capacities, so that the accelerated development and use of AI can contribute to economic and social recovery and improve competitiveness in the longer term. The opportunity is all the greater, since the RRF funding comes on top of the Digital Europe and Horizon Europe programmes, as well as substantial innovation funding under the Cohesion Policy programmes.

The newly adopted Recovery and Resilience Facility (RRF) will enable Europe to raise its ambitions and become a first mover in adopting AI. The RRF, which will be the centerpiece of the EU recovery plan, will make an unprecedented EUR 672.5 billion in loans and grants available to support reforms and investments by Member States for the crucial first years of the recovery. At least 20% of the available funding will be allocated to measures fostering the digital transition, amounting to up to EUR 134 billion in the life cycle of the RRF .

Strengthening Europe’s AI capabilities is a key element of the wider strategy of making Europe fit for the digital age and turning the next 10 years into the Digital Decade, as set out in the Digital Compass . In particular, the promotion of AI-driven innovation is closely linked to implementation of the European Data Strategy, including the recent proposal for a the Data Governance Act , since AI can only thrive when there is smooth access to data. Especially small and medium-sized enterprises will need fair access to data to make a broad uptake of AI in the EU economy possible. The proposed regulatory framework on AI will also work in tandem with applicable product safety legislation and in particular the revision of the Machinery Directive , which addresses - among others – the safety risks of new technologies, including the risks emerging from human-robot collaboration, cyber risks with safety implications, and autonomous machines. Equally, the framework is an addition to the EU Security Union strategy, the new cybersecurity strategy , the digital education action plan 2021-2027 and the recently proposed Digital Services Act and Digital Markets Act as well as the European Democracy Action Plan. Finally, the proposed framework will be complemented by legislation to adapt the EU liability framework, such as revising the Product Liability Directive, in order to address liability issues related to new technologies, including AI, and by a revision of the General Product Safety Directive.

Given AI’s potential, the European Union is promoting its development and deployment. Through the Digital Europe and Horizon Europe programmes, the Commission plans to invest EUR 1 billion per year in AI and mobilise additional investments from the private sector and the Member States to reach EUR 20 billion investment per year over the course of this decade.

Today’s AI package represents a key milestone in both policy dimensions. To promote the development of AI and address the potential high risks it poses to safety and fundamental rights equally, the Commission is presenting both a proposal for a regulatory framework on AI and a revised coordinated plan on AI.

Faced with the rapid technological development of AI and a global policy context where more and more countries are investing heavily in AI, the EU must act as one to harness the many opportunities and address challenges of AI in a future-proof manner. Starting with the launch of the European AI strategy in April 2018 , the Commission’s two-pronged policy has been to make the EU a world-class hub for AI, while ensuring that AI is human-centric and trustworthy. Published in February 2020, the Commission’s White Paper on AI set out a clear vision for AI in Europe: an ecosystem of excellence and an ecosystem of trust for AI.

Artificial intelligence (AI) will have an enormous impact on the way people live and work in the coming decades. This reasoning is the basis of the European strategy on AI, which was launched in April 2018 and has been confirmed since. The potential benefits of AI for our societies are manifold, from less pollution to fewer traffic deaths, from improved medical care and enhanced opportunities for persons with disabilities and older persons to better education and more ways to engage citizens in democratic processes, from swifter adjudication to a more effective fight against terrorism and crime, online and offline, as well as enhancing cybersecurity. AI has demonstrated its potential by contributing to the fight against COVID-19, helping to predict the geographical spread of the disease, diagnose the infection through computed tomography scans and develop the first vaccines and drugs against the virus. Above all, AI has displayed a versatility few other technologies can match. At the same time, the use of AI also carries certain risks, such as potentially exposing people including children, to significant mistakes that may undermine fundamental rights and safety, as well as to our democratic processes.

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS EMPTY

EUROPEAN COMMISSION Brussels, 21.4.2021 COM(2021) 205 final ANNEXES

to the Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions Fostering a European approach to Artificial Intelligence



Contents Coordinated Plan on Artificial Intelligence 2021 Review Introduction: creating EU global leadership in human-centric AI with Member States I.Set enabling conditions for AI development and uptake in the EU 1.Acquire, pool and share policy insights 2.Tap into the potential of data 3.Foster critical computing capacity II.Make the EU the place where excellence thrives from the lab to the market 4.Collaborate with stakeholders through, e.g. the European Partnership on AI, Data and Robotics and expert groups 5.Build and mobilise research capacities 6.Provide tools through an AI-on-demand platform and an environment for developers to test and experiment (TEFs), and for SMEs and public administrations to take up AI (EDIH) 7.Fund and scale innovative ideas and solutions for AI III.ensure that AI works for people and is a force for good in society 8.Nurture talent and improve the supply of skills necessary to enable a thriving AI eco-system 9.Develop a policy framework to ensure trust in AI systems 10.Promote the EU vision on sustainable and trustworthy AI in the world IV.Build strategic leadership in high-impact sectors 11.Bring AI into play for climate and environment 12.Use the next generation of AI to improve health

13.Maintain Europe’s lead: Strategy for Robotics in the world of AI 14.Make the public sector a trailblazer for using AI 15.Apply AI to law enforcement, migration and asylum 16.Make mobility smarter, safer and more sustainable through AI 17.Support AI for sustainable agriculture Conclusions: Appendix 1 Timeline – key actions Appendix 2 Analysis of national strategies and investments in AI 1.Overview of the national strategies 2.Outlook – forthcoming national actions 3.Member States’ investments in AI



Coordinated Plan on Artificial Intelligence 2021 Review Introduction: creating EU global leadership in human-centric AI with Member States The global leadership of Europe in adopting the latest technologies, seizing the benefits and promoting the development of human-centric, sustainable, secure, inclusive and trustworthy artificial intelligence (AI) depends on the ability of the European Union (EU) to accelerate, act and align AI policy priorities and investments. This is the key message and a vision of this 2021 review of the Coordinated Plan. The 2018 Coordinated Plan on AI represents a joint commitment by the European Commission and Member States to work together to maximise Europe’s potential to compete globally . It laid the ground for cooperation, defined areas for investments and encouraged Member States to develop national strategic visions on AI. The processes and the public debates, in Member States, the EU and globally, triggered by the 2018 Coordinated Plan, indicate that it was an essential first step to define a common direction and objectives for a European policy on AI. As a result of the actions agreed and facilitated by the 2018 Coordinated Plan, most Member States have adopted national AI strategies and started to implement them; investments in AI have increased and the EU was able to mobilise a critical resources pool to support those processes . The 2021 review of the Coordinated Plan is the next step – it puts forward a concrete set of joint actions for the European Commission and Member States on how to create EU global leadership on trustworthy AI. The proposed key actions reflect the vision that to succeed, the European Commission together with Member States and private actors need to:

-accelerate investments in AI technologies to drive resilient economic and social recovery facilitated by the uptake of new digital solutions; -act on AI strategies and programmes by implementing them fully and in a timely manner to ensure that the EU reaps the full benefits of first-mover adopter advantages; and -align AI policy to remove fragmentation and address global challenges. Accelerate private and public investments leveraging EU funding available, for example, through Digital Europe (DEP), Horizon Europe (HE) programmes and the Recovery and Resilience Facility (RRF). The Commission proposed that the Union invest in AI at least EUR 1 billion per year from Horizon Europe and the Digital Europe programmes under the programming period 2021-2027. This EU-level funding should attract and pool investment to foster collaboration among Member States and maximise impact by joining forces, achieving much more together than with uncoordinated, individual efforts. The objective is to gradually increase public and private investment in AI to a total of EUR 20 billion per year over the course of this decade. In addition, the RRF provides an unprecedented opportunity to modernise and invest in AI to lead globally in the development and uptake of human-centric, trustworthy, secure and sustainable AI technologies . The EU should not miss this opportunity. This Coordinated Plan puts forward how EU funding, including, DEP, HE and RRF can support joint actions among Member States. Act on AI strategies and programmes by taking timely and concrete steps supported by funding: from intention to action. The 2018 Coordinated Plan showed that coordination and joint efforts between Member States and the European Commission engaging industry and involving the general public in the development and uptake of AI technologies, can bring significant added value to the EU’s economy, environment and societies. This means that strategies, initiatives and programmes yield highest value if ideas for collaboration are well designed, targeted and funded. The EU’s experience with digital innovation hubs (DIHs) is one example of this. Both technology and public policies on AI have matured and are ready for wide-scale adoption. Globally, the number of businesses using AI technologies tripled in the last year . Developments in related fields, e.g. robotics and the ‘internet of things’ (IoT), create new technological frontiers and potential for AI systems. The costs of non-action could be significant . Therefore, to move from intention to action, the 2021 review proposes a set of specific actions with a clearly indicated timeline and possible cooperation and funding mechanisms. Align AI policy to address global challenges and remove fragmentation: Fragmentation between various EU actions as well as fragmentation between national and EU actions could slow progress in the take-up of AI and fumble the achievement of benefits. For this reason, to align joint actions on AI more closely with the 2020 White Paper on AI , the European Green Deal and the EU measures in response to the COVID-19 pandemic, the review strengthens its proposed actions on environment and health. Among other things, the national strategies underlined the importance of building on and promoting the human-centric, trustworthy, secure, sustainable and inclusive approach to AI. National strategies also underlined the need to develop sector-specific joint actions . Accordingly, the 2021 review takes account of changing technological and policy environments and incorporates insights from the two years of implementation of the Coordinated Plan and the strategies adopted by Member States. This alignment is reflected in the proposed new structure of the Coordinated Plan . In order to accelerate, act and align to seize opportunities of AI technologies and to facilitate the European approach to AI, that is human-centric, trustworthy, secure, sustainable and inclusive AI, in full respect of our core European values, this review of the Coordinated Plan puts forward four key sets of proposals for the European Union and the Member States: Set enabling conditions for AI development and uptake in the EU -Acquire, pool and share policy insights (Chapter 1) -Tap into the potential of data (Chapter 2) -Foster critical computing capacity (Chapter 3) Make the EU the place where excellence thrives from the lab to the market -Collaborate with stakeholders through, e.g. the European Partnership on AI, Data and Robotics and expert groups (Chapter 4) -Build and mobilise research capacities (Chapter 5) -Provide an environment for developers to test and experiment (TEFs), and for SMEs and public administrations to take up AI (EDIH) (Chapter 6) -Support the funding and scaling of innovative AI ideas and solutions (Chapter 7) Ensure that AI works for people and is a force for good in society -Nurture talent and improve the supply of skills necessary to enable a thriving AI eco-system (Chapter 8) -Develop a policy framework to ensure trust in AI systems (Chapter 9)

-Promote the EU vision on sustainable and trustworthy AI in the world (Chapter 7) Build strategic leadership in high-impact sectors -Bring AI into play for climate and environment (Chapter 11) -Use the next generation of AI to improve health (Chapter 12) -Maintain Europe’s lead: Strategy for Robotics in the world of AI (Chapter 13) -Make the public sector a trailblazer for using AI (Chapter 14) -Apply AI to law enforcement, migration and asylum (Chapter 15) -Make mobility safer and less polluting through AI (Chapter 16) -Support AI for sustainable agriculture (Chapter 17) In line with the above, the 2021 review of the Coordinated Plan provides an overview of actions taken since the adoption of the 2018 Coordinated Plan and sets out an outlook with concrete proposals and recommendations for further action, identifying areas where the partnership between the EU and the Member States is particularly effective in making Europe a hub for the development and use of cutting-edge, human-centric AI. The 2021 review aims to advance the objectives above and proposes 14 interrelated, joint action areas for collaboration between the European Commission and the Member States (seven horizontal and seven sectoral areas). As in the EU 2020 White Paper and the 2018 Coordinated Plan, the 2021 review of the Coordinated Plan does not address the development and use of AI for military purposes. I.Set enabling conditions for AI development and uptake in the EU In order to support the development and take-up of AI and to achieve the objectives of this Coordinated Plan, a number of enabling conditions are necessary. The first one is an appropriate governance and coordination framework. An efficient and functioning governance and coordination framework can help to build economies of scale, minimise information and transaction costs and facilitate synergies among Member States. The second enabling condition is data. The development of AI technologies often requires large, high-quality, secure and robust datasets. It is therefore important to ensure that data can ‘flow’ within the EU, with our trading partners and across sectors, in line with the EU acquis, including the General Data Protection Regulation for personal data and the Union’s international commitments. Third is a computation infrastructure. This infrastructure is necessary for storing, analysing and processing the increasingly large volumes of data. In turn, this requires new developments and approaches to increase computing capabilities, e.g. through semiconductors that enable AI algorithms to store, run, and test data. Together, these three factors create broad enabling conditions for AI technologies to succeed in the EU. Accordingly, to set enabling conditions for AI development and take-up and enhance cooperation among Member States and among Member States and the European Commission, the review proposes to focus on three key actions: to build a governance framework to effectively acquire, accumulate and share policy insights on AI; to tap into the potential of data to unleash its full potential; to foster critical computation infrastructure to support capacity building and enhance the development of AI. OUR KEY PROPOSALS TO SET ENABLING CONDITIONS Foster critical computing capacity Tap into the potential of data Acquire, pool and share policy insights 1.Acquire, pool and share policy insights Knowledge is key. Sharing knowledge and policy insights, and coordinating policy actions and investments in a rapidly developing area such as AI can add an important competitive advantage. For this reason, in the 2018 Coordinated Plan the Member States and the Commission agreed on a governance mechanism for joint work and proposed two sets of actions to build policy insights and develop synergies. Member States were encouraged to put into place national AI strategies or programmes (or add an AI dimension to other relevant national strategies and programmes) and share these with each other and the Commission; and the Commission pledged to monitor developments and mobilise expertise. 1.1. Maximise the advantages from national strategies and accelerate the proposed actions Overview of actions taken All Member States made substantial efforts to develop national strategies on AI or to include an AI dimension in their existing strategies and programmes . The adoption of national strategies facilitated structured reflection on the priorities and objectives for the development and uptake of AI, and triggered wider public debate in many Member States. The exchange of information on the national strategies also fed into a structured dialogue between the Member States and the Commission.

As the analysis of national strategies indicates, the adoption of national strategies was an important first step to facilitate and streamline European effort on AI. This process helped to identify the priority sectors for joint actions, provided a solid mapping of the main investment priorities planned by the Member States and indicated possible steps forward for common multi-country projects and joint activities. Outlook The next step is to ensure that the efforts invested by Member States in developing the national strategies bring concrete results and lead to synergies at EU level. In order to support Member States in their work to develop and implement national strategies on AI, the Commission will continue to: -facilitate the uptake of and synergies between national actions identified in the national AI strategies and joint actions under the Coordinated Plan. This may include measures to strengthen coordination mechanisms and provide analysis and studies, for example through AI Watch; -enhance the provision of information to Member States on the practical means, including funding, to support the development and uptake of AI. For example, in 2021 the Commission will continue to inform Member States on the EU funding available for AI. Member States are strongly encouraged to: -make best use of relevant EU funding possibilities, including RRF, to support and reinforce development and uptake of AI technologies at both national and local levels, on the basis of the national strategies, including by crowding in private investment; -review and update national AI strategies as necessary to ensure that identified actions and investments are fully realised in practice and inform the Commission about the progress accordingly; -develop and promote instruments that allow regular monitoring, coordination, evaluation and exchange of experience and best practice across a broad spectrum of stakeholders; -reinforce support for and investment in joint actions identified in the Coordinated Plan; and -share, develop and implement actions on national/regional level that proved to be successful in other Member States, for example, successful national initiatives to develop and promote a virtual warehouse of data. 1.2.Reap the full benefit of the technical expertise of expert groups on AI facilitated by the European Commission Technological and socioeconomic developments relating to AI are very dynamic and often require specialised expertise. Accordingly, to monitor the advancement and uptake of AI technologies and facilitate evidence-based policy on AI, the Commission has put considerable effort into mobilising expertise, collecting data, monitoring developments and collecting and analysing stakeholder opinions related to AI. Overview of actions taken In order to mobilise expertise related to AI technologies, the Commission established three horizontal expert groups: -High-Level Expert Group on Artificial Intelligence – this group extensively analysed the ethical implications of AI for policymaking and produced three deliverables during its mandate: -ethics guidelines for trustworthy AI ; -policy and investment recommendations for trustworthy AI ; and -an assessment list for trustworthy AI (ALTAI) . -High-Level Expert Group on the Impact of the Digital Transformation on EU Labour Markets – in 2019, this group issued a report with recommendations, including short-, medium- and long-term policy actions for the EU, Member States, businesses and other stakeholders to shape the digital transformation of the world of work and make it smooth, inclusive and human-centric .

-Expert Group on Liability and New Technologies – in 2019, this group published a report on Liability for artificial intelligence and other emerging digital technologies. In addition to horizontal groups, sectoral expert groups focused on specific policy areas affected by the application of AI technologies including autonomous vehicles , aviation, mobility and transport, home affairs and emerging security risks . This work provided valuable expertise and contributed to ongoing EU-level policy discussions on AI issues, including the challenges and opportunities that AI technologies bring and the public policy responses needed. In 2018, the Commission (in coordination with the Member States) developed and launched AI Watch in order to monitor developments relating to AI technologies. AI Watch monitors industrial, technological and research capacity, AI policy initiatives in the Member States, investments, AI skills, AI developments and uptake and their impact on the economy, society and public services. In the first two years, it published studies to support evidence-based policymaking and to inform the public debate on AI . Also in 2018, to monitor the adoption and use across Europe of emerging and disruptive technologies for the provision of public services, including AI technologies, the Commission created an innovative public services (IPSO) platform. Similarly, to monitor the uptake of emerging digital and key enabling technologies (including AI) in industrial development, in 2020, it launched an advanced technologies for industry (ATI) project. It also commissioned a survey on EU firms’ use of AI-based technologies . In 2020, Eurostat started to collect data on AI uptake in the EU. The first data set was collected through four proxy indicators related to AI with focus on chatbots, big data analysis with machine learning, big data analysis with natural language processing and service robots. The major initiative to collect stakeholders’ opinions on the EU’s AI strategy was an open public consultation which followed the publication of the 2020 White Paper on AI and gathered views in three broad areas: actions to build an ecosystem of excellence; options for a regulatory framework for AI; and actions relating to the safety and liability aspects of AI . In addition to their responses to the public consultation, Member States provided feedback on possible changes to the Coordinated Plan and joint action through discussions in the Group on AI and Digitising European Industry , and bilateral consultations with the Commission. To engage more broadly with stakeholders on AI-related topics, the Commission has established an online forum, the AI Alliance , which provides a platform for around 4 000 stakeholders from all around the world to exchange information, and discuss the technological and societal implications of AI . The Commission organised AI Alliance assemblies in June 2019 and in October 2020 . Outlook In order to mobilise expertise, monitor ongoing developments and collect data on AI the Commission will continue to -enhance data collection on AI uptake, – in 2021, Eurostat will launch a full module on AI covering the uptake of seven AI technologies, uses of AI technologies, sourcing and barriers to use. AI Watch will continue to monitor and collect data on uptake of AI technologies, including in the public sector; -support the work of the AI Alliance, by running the Alliance Platform and organising annual AI Assemblies with a broad spectrum of stakeholders to provide a framework for input into EU policymaking on AI; and -evaluate developments and gather necessary knowledge on AI technologies. This may include, if necessary, for example, new expert groups or sectoral initiatives on AI that would provide input to feed into EU policymaking on AI or assist the Commission in evaluating the actions necessary to support Member States’ implementation of EU policy and proposed legislation on AI technologies. In consultation with Member States, the Commission will -analyse and by 2022 propose how to reinforce monitoring of the development, uptake and impact of AI technologies in the EU in the private and public sectors. This will build on the lessons learned from the work of AI Watch and the national AI observatory initiatives. The analysis will also consider how to further reinforce and build synergies and links with existing monitoring mechanisms or forthcoming EU governance structures on AI or international monitoring activities; and -regularly monitor the implementation of the Coordinated Plan to ensure it remains up to date. On the basis of feedback from Member States on the 2021 review and in consultation with other EU institutions and bodies, the Commission will propose in 2022 a timeline, a matrix and a methodology for the next review of the Coordinated Plan. 1.3.Strengthen exchanges and collaboration through the Member States’ Group on AI and Digitising European Industry The action to facilitate cooperation among Member States and between Member States and the Commission is further supported by governance mechanisms that facilitate the exchange of information and help to set the strategic direction for collaboration on AI policy. Overview of actions taken The Member States’ Group on Artificial Intelligence and Digitising European Industry (MS Group on AI and DEI), assisted on technical matters by a Sherpa group, steered the discussions between Member States and the Commission. It played a key role in developing and revising the Coordinated Plan. The group met regularly and ensured coordination across national ministries and other stakeholders, e.g. in industry, academia and civil society. During the years following the adoption of the 2018 Coordinated Plan, the group has addressed all the main areas it covers, including AI excellence centres, testing and experimentation facilities (TEFs), the legal framework, regulatory sandboxes, data, skills, AI for the Green Deal, AI for health, DIHs and AI in security. Outlook

In order to facilitate governance mechanisms for cooperation: the Member States’ Group on AI and Digitising European Industry, facilitated by the Commission, will continue to: -steer discussions between Member States and the Commission – the group will engage in thematic or sectoral deep dives on topics including, for example, standardisation activities, the socioeconomic impact of AI, financing opportunities, measures to support start-ups, support for public-sector AI uptake and procurement, AI and cybersecurity, and AI and mobile connectivity; The Commission, with the support of Member States, will continue to: -evaluate the need to establish cooperation and networks at EU level to build EU capabilities; and -in collaboration with the future co-programmed partnership on AI, Data and Robotics, exchange best practices from Member States on the development, deployment and uptake of AI systems; Member States are encouraged to: -facilitate cooperation and create a system of regional AI networks; and -facilitate discussions on setting up national coalitions and facilitate best practice exchange among Member States and stakeholders on existing national AI coalitions by bringing together public- and private-sector stakeholders, e.g. in joint workshops on thematic areas of common interest. In cooperation with the co-programmed partnership on AI, Data and Robotics, this action will assist cross-border cooperation and draw in more stakeholders. 2.Tap into the potential of data The availability of high-quality data, among other things, in respect of diversity, non-discrimination, and the possibility to use, combine and re-use data from various sources in a GDPR compliant way are essential prerequisites and a precondition for the development and deployment of certain AI systems. However, data-sharing, especially between companies, has not taken off at sufficient scale, due to a lack of economic incentives, a lack of trust and a lack of legal clarity. Therefore, the 2018 Coordinated Plan suggested the creation of common European data spaces for seamless data-sharing across borders. It also stressed the importance of developing a pan-European computing infrastructure and cloud services, especially given the international competition for access to data. Overview of actions taken On 19 February 2020 the Commission adopted a European strategy for data , which aims at creating a single market for data to ensure Europe’s global competitiveness. This entails creating the right incentives for data-sharing, establishing practical, fair, non-discriminatory and clear rules on data access and use, in line with European values and rights such as personal data protection, consumer protection and competition rules. It also means making public sector data more widely available by opening up high-value data sets and allowing their re-use for innovation. In June 2020, the Commission published a report on business-to-government (B2G) data-sharing from a high-level expert group and containing a set of policy, legal and funding recommendations in order to make B2G data-sharing in the public interest a scalable, responsible and sustainable practice in the EU. The European strategy on data also promotes data-sharing, for example, business-to-business (B2B) practices. Following up on the data strategy, on 25 November 2020, the Commission proposed a new Data Governance Act. The proposed regulation includes a number of measures to increase trust in data-sharing, including in B2B practices, and in this way aims at making more quality data available for AI applications. It creates new EU rules on neutrality to allow novel data intermediaries to function as trustworthy organisers of data-sharing. It includes measures to facilitate the reuse of certain data held by the public sector. It provides means to make it easier and safer for companies and individuals to voluntarily make their data available for the wider common good under clear conditions. It calls for the creation of a ‘European Data Innovation Board’ in order to support and advise on cross-sectoral standardisation and interoperability as an essential element to assure availability of high quality data. The Data Governance act may be complemented by sectoral legislation where needed. Outlook To support actions on data, the Commission will: -adopt a proposal for a Data Act, in order to stimulate the use of privately-held data by government (B2G), address issues related to data access and use in business-to-business settings, in particular non-personal data resulting from objects connected to the internet of things (Q3 2021) ; and -propose an implementing act on making public sector high-value data sets in a machine-readable format freely available for reuse (Q2 2021) . Together with the Member States, the Commission will: -launch a European Alliance for industrial data, edge and cloud in order to mobilise private and public actors to join forces and to strengthen Europe’s industrial position in the global cloud and edge computing market. Its primary role will be to stimulate the coordination of public and private investments in research, development and deployment of next-generation cloud capacities at local, national and EU levels. The Alliance will be connected with the European data spaces and thus foster innovative data-sharing environments based on open, interoperable, secure and resource-efficient cloud and edge solutions. It will also foster synergies between the work on European cloud federation and Member States’ initiatives ;

-invest in European data spaces and the European cloud federation, through the Digital Europe programme, Connecting Europe Facility (CEF2) funding instruments, and other instruments, such as EU4Health for the European Health Data Space. Specifically, with first calls under Digital Europe and CEF2 to be launched in Q2 2021 the Commission will: -launch sector-specific actions, as announced in the European strategy for data , to build European data spaces for industrial manufacturing, the green deal, mobility, health, finance, energy, agriculture, public administration, and skills. -co-invest in the actions focusing on the development of innovative and energy-efficient cloud-to-edge services and infrastructures, middleware platforms, the interconnection of existing data-processing capacities in Member States; -continue to support under Horizon Europe Cluster 4 ‘Digital, Industry and Space’, the research, development and uptake of next-generation computing and data technologies and infrastructures, with a view of enabling the creation of a European single market for data with the corresponding data spaces and a trustworthy and secure AI ecosystem. The first calls will take place in April 2021; and -accompany all interested Member States in the set-up of a possible Important Project of Common European interest (IPCEI) focusing on next-generation cloud infrastructure and related services. The Member States are encouraged to: -invest in strengthening Europe’s position in next-generation cloud and edge technologies and foster cloud uptake through their national recovery and resilience plans and in line with the example component for the RRF ‘Scale-up’ flagship and including through multi-country projects. 3.Foster critical computing capacity Without computing infrastructure, the availability of data will not generate added value . Therefore, the Commission takes measures to support the development of the technological systems and the next-generation of data processing infrastructures as a key for enabling the use of data for AI . Overview of actions taken To support the development of High Performance Computing (HPC) capabilities in Europe, the EuroHPC Joint Undertaking coordinates efforts and pools resources among 32 participating countries to develop and deploy a world-class supercomputing infrastructure that will be easily and securely accessible from anywhere in Europe. The main trends for AI hardware can be summarised as follows: (1) next-generation AI solutions will need to be more powerful and more energy-efficient to meet the needs of increasingly sophisticated training models, and (2) computing will increasingly move to ‘the edge’, on devices that are closer to the users and able to implement real-time AI applications. Those trends require adaptation of the infrastructure and the Commission is taking steps, as outlined below, to enable the next-generation computing infrastructures. Accordingly, the EU focuses on actions to support the development of AI hardware. AI models are increasingly demanding in terms of computing power, so fast access to data from memory, i.e. high-performance and efficient processors, are of paramount importance for AI infrastructures. In addition, AI models are highly demanding in terms of energy and, as AI technologies penetrate more into our daily lives, such energy demand is not sustainable. Therefore, AI uptake requires access to dedicated low-power AI processors that provide the necessary processing power and are more efficient, by several orders of magnitude, than general-purpose processors. In this area of research, for example, novel brain-inspired technologies, such as neuromorphic computing, have a potential to deliver ground-breaking energy efficiency. In this context, the Commission has supported pioneering work in low-power AI technologies under Horizon 2020 and is supporting initiatives for the further development and exploitation of such competences under Horizon Europe and with research actions on novel architectures for ultra-low power processors, and through the institutionalised European Partnership on Key Digital Technologies (KDT), with a particular focus on edge AI applications. The ‘scale-up’ flagship of the 2021 annual sustainable growth strategy targets, among other things, investments in cutting-edge microelectronics, with a particular focus on processors such as AI chips. In December 2020, to consolidate the EU’s position in the design and production capabilities of advanced chips, 18 Member States signed a declaration on processors and semiconductor technologies. Also, in 2019-2020, the AI4DI, TEMPO, and ANDANTE projects under the Electronic Components and Systems for European Leadership Joint Undertaking (ECSEL JU) addressed infrastructure for AI. Another area of development and funding supported by the Commission is photonics. Mixing electronics with optical elements can bring AI integration in image sensing and decrease power consumption and latency in neural networks. Outlook In order to bolster Europe’s processor and semiconductor design and production system and expand industrial presence across the supply chain, the Commission with the support of the Member States will: -launch an Industrial Alliance on Microelectronics in order to establish strategic roadmaps, research and investment plans for processor design, deployment and fabrication for AI, data processing and communication, taking into account the full semiconductor ecosystem and related components.This will contribute to reinforcing the electronics design ecosystem and establishing the manufacturing capacity in very advanced nodes; -facilitate preparatory work during 2021 with all interested Member States towards a possible Important Project of Common European interest (IPCEI), focusing on the next generation of advanced processors for AI, data processing and communication; -dedicate a Testing and Experimentation Facility, supported by the Digital Europe programme, on edge AI components and systems, with a call to be launched in Q2 2021, for a world-class infrastructure for testing and validation of advanced AI computing technologies in a wide range of applications; -invest in research and innovation for the computing needs of low-power edge AI through the institutionalised European Partnership on KDT under Horizon Europe (Q3 2021). This partnership, built on the current ECSEL JU, will enhance Europe’s potential to innovate in electronic components and systems, and related software technologies. One of the primary strategic objectives will be to develop AI processing solutions, particularly for edge and embedded applications. Through joint actions, KDT will provide trusted, secure and low-power solutions to enable a computing ecosystem of excellence and trust.

Member States are encouraged to: -continue the development of national integrated large-scale data management and HPC infrastructure to support research, innovation and skills development in AI through regional, national and European DIHs; -ensure that academic, industry and public sector organisations can leverage national HPC and data-management infrastructure and expertise to optimise and scale up their AI innovation and applications; and -invest in strengthening Europe’s position in processors and semiconductor technologies for AI through their national recovery and resilience plans, in line with the example component for the RRF ‘Scale-up’ flagship area and through multi-country projects. II.Make the EU the place where excellence thrives from the lab to the market The development and deployment of AI technologies, in addition to data and computational infrastructure, also require targeted actions and sufficient resources, focusing on excellence in research and innovation (R&I), availability of the requisite talent and skills, a supporting policy framework and international coordination. These actions are ‘horizontal’, i.e. cutting across all policy areas and help to make the European Union the place where excellence thrives from the lab to the market. The proposed ‘horizontal’ joint actions cover a whole AI life cycle. This includes actions to facilitate an ecosystem of excellence, including world-class foundational and application-oriented research, development, deployment and commercialisation/uptake of AI as well as measures to support trust in AI technologies, nurture talent and skills and enhance the EU’s global outreach. OUR KEY PROPOSALS FOR EXCELLENCE Fund and scale innovative ideas and solutions for AI Provide an environment for developers to test and experiment (TEFs), and for SMEs and public administrations to take up AI (EDIH) Build and mobilise research capacities Collaborate with stakeholders through e.g. PPP on AI, Data and Robotics and expert groups 4.Collaborate with stakeholders through, e.g. the European Partnership on AI, Data and Robotics and expert groups This section focuses on actions that are essential to define, and engage collectively in supporting a roadmap for excellence and for wider diffusion of AI. Overview of actions taken European Partnerships bring the Commission, Member States and private and/or public partners together to address and deliver on some of Europe’s most pressing challenges and to modernise industry through concerted research and innovation initiatives. The Partnerships provide, among other things, a legal structure to pool resources and to gather critical mass and make research and innovation funding across the EU more efficient by sharing financial, human and infrastructure resources. Partnerships also facilitate the creation of an internal market for innovative products and services, enable innovative technologies to reach the market quickly, and facilitate the scale of research and innovation effort needed to address critical societal challenges and major EU policy objectives. Several Horizon 2020 Partnerships were specifically relevant to AI technologies. The Big Data Value Public Private Partnership (PPP) between the European Commission and the Big Data Value Association (BDVA), aims to cooperate on data-related research and innovation, enhance community building around data, and lays the ground for a thriving data-driven economy in Europe. The Robotics PPP (SPARC) brings together the European robotics industry, academia and the European Commission in order to strengthen the competitive position of the European robotics industry and foster the excellence of its science base. The High-Performance Computing (HPC) contractual Public Private Partnership was launched in 2014 to develop the next generation of HPC technologies, applications and systems towards exascale, and to achieve excellence in the delivery and use of HPC applications . As of December 2018, with the creation of the European High Performance Computing Joint Undertaking (EuroHPC JU), this partnership ceased to exist, and the private side joined the EuroHPC JU. The EuroHPC JU allows the EU and EuroHPC participating countries to coordinate their efforts and pool their resources to deploy world-class exascale supercomputers and make Europe a world leader in HPC, providing computing solutions and improved cooperation in advanced scientific research. The Electronic Components and Systems for European Leadership Joint Undertaking (ECSEL JU) is the first Joint Undertaking to have based its governance on a tripartite model (Commission, Participating States, and Industry). It aims to secure world-class expertise in key enabling technologies and Europe’s competitive leadership in hardware and embedded software essential for the development and deployment of AI-based digital systems. The Photonics PPP (Photonics21) aims to establish Europe as a leader in the development and deployment of photonics technologies in various fields of application, such as ICT, lighting, industrial manufacturing, life science, safety. The Factories of the Future PPP for advanced manufacturing aims to realise the next industrial revolution (Factories 4.0).

Outlook The Commission will continue to support European partnerships in the context of Horizon Europe and enhance the strategic approach to research and innovation (R&I) in AI technologies. The Commission will, in 2021: -establish among others the following European partnerships of relevance to AI, including: -a co-programmed European partnership on AI, Data and Robotics – the main objective is to drive innovation, uptake and acceptance of AI, data and robotics technologies. The partnership will build bridges between stakeholders that enable a human-centric and trustworthy European vision of AI to flourish . It will establish links to Member States and provide an overview of major national policies and initiatives by appointing national and/or regional ambassadors; -follow up its September 2020 proposal for a new regulation to replace the 2018 Council Regulation establishing the EuroHPC JU – this sets out an ambitious mission and a substantially larger budget for 2021-2033 to provide Europe with a world-leading hyper-connected supercomputing and quantum-computing infrastructure; -propose through the Single Basic Act an institutionalised European Partnership on Key Digital Technologies (KDT). Building on the achievements of the ECSEL JU, its main objective is to advance developments to reinforce Europe’s processors and semiconductor technologies’ ecosystem, addressing key technological, security, societal and environmental challenges; -the co-programmed European Partnership on Photonics will secure Europe’s technological sovereignty through photonic innovations and their transfer into applications, improving Europe’s competitiveness and ensuring long-term jobs and prosperity; and -the co-programmed European Partnership ‘Made in Europe’ will be the driving force for sustainable manufacturing in Europe, including through AI, contributing to a competitive and resilient manufacturing industry in Europe and reinforcing added value in supply chains across sectors; and -support and facilitate synergies (including the organisation of joint calls) between European partnerships (co-programmed and institutionalised) around AI technologies, such as AI, Data and Robotics, Photonics, Made in Europe, EuroHPC , and KDT. 5.Build and mobilise research capacities This section focuses on measures to boost AI research and innovation excellence and to improve European competitiveness. Overview of actions taken In addition to the strategic research agendas of the Public-Private Partnerships, the EU also takes action to strengthen excellence in basic and applied research and to foster talent in Europe. Through Horizon 2020, the Commission invested EUR 50 million over 4 years to create a research community of closely networked AI excellence centres . The aim is to increase cooperation among the best research teams in Europe, so that they can join forces to tackle major scientific and technological challenges in AI, and to facilitate closer cooperation, integration and synergies between research teams and industry. Five projects have been selected to form the network, to bring together world-class researchers and establish a common approach, vision and identity for the European AI system; these include four networks of AI excellence centres and one coordination and support action. In order to ensure that EU support for research keeps up with AI technological developments, the Commission has assessed its cross-sector investments in AI under Horizon 2020 against current research trends and needs, and identified future investment opportunities for AI, primarily under Horizon Europe. It has also used input from the public consultation on the AI White Paper and targeted consultation from the AI community, in particular the AI, Data and Robotics PPP, to plan new topics in AI research and additional networks of excellence centres. Outlook To drive excellence in research, the Commission will: -set up, starting in 2021, and in close dialogue with the Member States and the wider AI community, an AI lighthouse for Europe, as announced in the White Paper. The AI lighthouse will build on the existing and future Networks of AI excellence centres, with the aim to build an alliance of strong European research organisations that will share a common roadmap to support excellence in basic and applied research, to align national AI efforts, to foster innovation and investments, to attract and retain AI talent in Europe, and to create synergies and economies of scale. This initiative will bring together leading players from research, universities and industry in Europe to work on commonly agreed ambitious challenges, with the overarching aim of becoming a world reference of excellence in AI. As a result, Europe’s diversity will stimulate healthy competition, rather than the fragmentation of the AI community; -fund under Horizon Europe, in 2021 and 2022, additional networks of AI excellence centres addressing complementary research areas that are not yet covered by the existing networks of AI excellence centres and reinforcing research efforts that address critical AI research topics. This will drive forward the development of safer, more secure and more trustworthy AI, support foundational and application-oriented research on next-generation AI, aiming to keep Europe at the cutting edge in AI; -under Horizon Europe, starting in 2021, advance the state of the art in various areas of AI research, including, research towards the next level of intelligence and autonomy of AI-based systems, transparency in AI, greener AI, AI for complex systems, advances in edge AI networks, unbiased AI systems, empowering humans with advanced AI support;

-in addition to developing enabling technologies, the Horizon Europe programme will also demonstrate how AI helps transform major economic sectors in production and services, including implications on labour, and address major societal challenges in areas such as healthcare, civil security, climate change, energy, mobility, media (e.g. addressing disinformation) and agri-food; -in the context of the co-programmed European Partnership on AI, Data and Robotics, mobilise stakeholders via the strategic research, innovation and deployment agenda to develop and implement the research, innovation and deployment strategy for Europe, with a focus on the responsible development and use of AI; and -have the aim that AI-related projects that receive R&I funding under the Horizon Europe adhere, as appropriate, to the ‘ethics by design’ principle, including for trustworthy AI. Furthermore, in order to achieve a diverse AI research community, the Commission advocates diversity and inclusiveness in project consortia. Member States are encouraged to: -set up regional and national research excellence centres around AI, for example by using national funding instruments and RRF funds, and create a research and technology transfer structure able to attract and retain talent while at the same time aiming to become a national reference point for AI research and development. The centres would ensure regional outreach and exchange, collaborate at the European level and, together with the EU-funded networks, build the distributed European AI lighthouse; and -strengthen investment in AI research at national level, e.g. through the RRF. 6.Provide tools through an AI-on-demand platform and an environment for developers to test and experiment (TEFs), and for SMEs and public administrations to take up AI (EDIH) This section focuses on measures that help bring innovation from the lab to the market to ensure the broad uptake and deployment of AI technologies. Overview of actions taken Facilities for testing and experimenting with innovative AI systems are essential for deployment and uptake of AI technologies. This is especially important for small and medium-sized enterprises (SMEs), which face difficulties in taking full advantage of the fast developments in digital technologies to become competitive and innovative. In collaboration with Member States, the EU has proposed two sets of measures: -Testing and Experimentation Facilities (TEFs) – i.e. technology infrastructures with specific expertise and experience in testing mature technology in a given sector, in real or close-to-real conditions. The aim is to provide developers with an infrastructure for testing AI technology before bringing it to the market; and -Digital Innovation Hubs (DIHs) – ‘one-stop shops’ that help all companies interested to use AI to become more competitive with regard to their business/production processes, products or services by using AI technologies. European Digital Innovation Hubs provide companies with a possibility to test AI technologies before investing as well as related services, such as financing advice and advice on training and skills development that are needed for a successful digital transformation. Testing and experimentation facilities (TEFs) The 2018 Coordinated Plan stated that to optimise investment and avoid duplication or competing efforts, a limited number of specialised large-scale reference sites should be developed and opened to all actors across Europe. Following the adoption of the Coordinated Plan and in preparation for the Digital Europe programme, the Commission took preparatory steps to develop this concept and to prepare AI Testing and Experimentation Facilities (TEFs). Specifically, starting from 2019 the Commission has worked intensively with Member States to refine the concept of TEFs and to prioritise relevant sectors. In January 2020, the Commission organised five workshops, involving stakeholders from industry, academia and Member States, to discuss TEFs for specific sectors (agri-food, manufacturing, healthcare and smart cities) and technologies (edge AI). The results of the preparatory work and exchanges with the stakeholders suggest that experimenting and testing state-of-the-art technology in real-world environments is an essential element in bringing technology to the market and is a part of the innovation chain where Europe’s AI system needs significant support to remain globally competitive. The edge AI TEF plays a special role for the AI ecosystem of excellence. Edge AI offers clear benefits as a hardware technology: it provides real-time operations, as well as advantages in terms of security and privacy of data and energy consumption. The edge AI TEF aims, as a European platform, to enable companies of any size to test and experiment innovative edge AI components based on advanced low-power computing technologies, such as neuromorphic computing. Given EU’s current dependency on computing technologies, the high costs of the necessary semiconductor equipment and need for long-term investments, the edge AI TEF is necessary to close the funding gap so that European companies get access to low-powered AI computing hardware. In other words, the edge AI TEF will endow Europe with an ecosystem of excellence that will serve as an essential instrument to achieve technological leadership in AI. In order for TEFs to play a central role in the AI system, they should be easy to use, work under real conditions, closely involve end users and be used by developers across the private and public sector, especially SMEs. Furthermore, efficient interplay between TEFs and data spaces is fundamental in creating a level playing field and ensuring non-discriminatory market access. This could be achieved, for example, by teaming up the data spaces and TEFs in mutual areas of interest. TEFs have an important role in testing robustness, reliability and safety of AI technologies through testing their ability to comply with obligations that are set to be defined in AI regulation. Finally, TEF projects should interact with parallel initiatives on the European AI-on-demand platform. Digital Innovation Hubs

In order to help European companies (especially SMEs) make the most of new technologies, the Commission launched the ‘Digitising European Industry’ initiative in 2016. One of the pillars of this initiative is to establish and support Digital Innovation Hubs (DIHs), which provide access to technical expertise and experimentation possibilities, so that companies can test before they invest. DIHs also provide innovation services, such as financing advice and the training and skills development that businesses need for a successful digital transformation. Member States and regions have been investing in Digital Innovation Hubs, and the Commission (through Horizon 2020 projects in 2019 and 2020) has made available over EUR 200 million for networking the DIH. Around half of this funding was related to innovations in AI-relevant areas, including robotics and big data, and special activities were implemented for regions with few DIHs. The Horizon 2020 projects typically cascade funding through open calls to SMEs to allow them to participate in innovative experiments with DIHs in a cross-border context. The European Court of Auditors (ECA) assessed this dimension of the Digitising European Industry initiative and recommended that the Commission, in coordination with Member States, should take further action on the funding and monitoring of DIHs. Support under the Digital Europe programme will address the observations of the ECA. The label European Digital Innovation Hubs (EDIHs) is introduced to mark the difference with the previous approach funded under Horizon 2020. The EU and the Member States will invest EUR 1,5 billion to set up a network of around 200 hubs across European regions. The grants should be used to improve the capacity of the selected EDIHs to deliver services to SMEs and the public sector. Selection and funding of these EDIHs is a joint action of the Member States and the Commission. The EDIHs will stimulate the broad uptake of AI, HPC, cybersecurity and other digital technologies by industry (in particular SMEs) and by public-sector organisations in Europe. They will also support them in the use of digital technology, to improve the sustainability of their processes and products, in particular with regard to energy consumption and reducing greenhouse gas emissions. They will ensure a broad geographical coverage and have both local and European functions. The EDIHs will use the tools and resources made available by the AI-on-demand platform, and will be a multiplier for the TEFs: EDIH will help companies in need to make use of the relevant TEF to innovate their new products and services and make them market ready. AI-on-demand platform The European AI-on-demand platform and system initiative started in 2019 and is funded under Horizon 2020. It brings together AI stakeholders and resources, thus overcoming fragmentation and accelerating AI-based innovation (research, products, solutions). The platform under development is set to function as a European AI market driver, offering a critical mass of resources, community networking effects and rapid development and growth. Activities to consolidate the system started in January 2021 to bring in larger user communities, especially from the non-tech sector, and to facilitate the use and uptake of the platform resources. Outlook In order to help to bring innovation from the ‘lab to the market’ – to ensure the broad uptake and deployment of AI technologies, the Commission together with Member States will: -co-fund Testing and Experimentation Facilities under the Digital Europe programme in order to provide a common, highly specialised resource to be shared at the European level and foster the speedy deployment and greater uptake of trustworthy AI across Europe. In this context: -the first calls (in 2021-2022) will focus on the following identified sectors: manufacturing, health, agri-food, smart communities and edge AI. The estimated budget per sector will be around EUR 20-75 million; -select, during 2021-2022, the network of up to 210 EDIHs covering all regions of Europe. Regarding AI, the following specific activities are foreseen: -at least one EDIH in every Member State with AI expertise. The network of EDIHs will share best practices and effectively collaborate with each other (using the recommendations coming out of the AI DIH Network) to offer the best support to SMEs and public sector organisations everywhere in Europe; and -the network of EDIHs will work closely with the AI-on-demand platform, the TEFs, and the data spaces, and they will promote the use of these infrastructures to SMEs located everywhere in Europe. This will boost the dissemination of the resources and let companies experiment with AI; -consolidate in 2021 and onwards, the AI-on-demand platform as a central European toolbox of AI resources needed for industry and public sector uses so that it can: -become the main European marketplace for AI resources; it will provide easy and simple access to AI tools, which will then be distributed locally by the EDIHs or used directly by the user industry (especially SMEs) or the public sector; and -collaborate with relevant national and European initiatives to become the central AI toolbox in Europe for anyone looking for AI expertise, technology, services and software. The Commission encourages Member States to: -commit an equal share of funding to TEF projects selected by the Commission with the help of independent experts; -define relevant new priorities for additional TEFs beyond the current sectors of agri-food, manufacturing, healthcare and smart communities. Possible new sectors could be, for example, mobility, public administration or green transition; -take full advantage of the opportunities offered by RRF, as well as by Cohesion Policy programmes, to fund more (E)DIHs and TEFs in order to bring innovation closer to the market; and -support the creation of local, regional and/or national AI marketplaces for interaction and the exchange of best practice; and facilitate scale-up across borders through the European AI-on-demand platform (central AI toolbox and marketplace), EDIHs, and Startup Europe.

7.Fund and scale innovative ideas and solutions for AI This section focuses on support measures, with specific focus on start-ups, scale-ups, and other small and medium sized enterprises, that develop AI technologies. InvestEU and the RRF offer crucial resources to strengthen the use of financial instruments. Overview of actions taken To support start-ups and SMEs both in their early stages and in the scale-up phase the Commission has put forward the AI/Blockchain Investment Scheme and its Support Programme . The pilot scheme aims to enhance the access to equity finance for innovative and higher risk AI and blockchain start-ups and SMEs with a broad geographic coverage in the EU, including less developed markets. It provides resources for investments to venture capital funds and co-investments to National Promotional Banks in Member States. Through an initial allocation of EUR 100 million from the Horizon 2020 programme, it is estimated, that the total investment volume of the fund is reaching EUR 700 million . The dedicated support programme runs from 2020 to 2022. In December 2020, the European Investment Bank Group (EIB Group) also launched a new co-investment facility of up to EUR 150 million to invest alongside funds backed by the European Investment Fund (EIF) and to support the growth of AI companies across Europe. The European Innovation Council (EIC) supports AI start-ups, in development and scaling-up AI breakthrough technologies and game-changing innovations. Since the launch of the pilot phase , the EIC supported numerous innovations in the field of AI in a wide range of scientific domains, from life sciences, food and agriculture to energy and environment-friendly technologies. For development of innovation from research projects the EIC Pathfinder pilot offers grants to promote collaborative, inter-disciplinary innovation on science-inspired and radically new future technologies. The EIC Accelerator supports scaling up of start-ups and their market entry with funding opportunities and acceleration services. The support from EIC is available to all SMEs with radically new ideas underpinned by a business plan for rolling out marketable innovation solutions and with ambitions to scale up. During its pilot phase (2018-2020), EIC provided EUR 160 million via grants and EUR 91 million through direct equity investments to AI innovative start-ups and projects involving direct or collateral research on AI technologies. In 2021, the EIC is providing over EUR 1 billion in grants and equity for start-ups and SMEs with a focus on deep tech. The European Institute of Innovation and Technology (EIT) supports a number of initiatives to drive AI innovation forward, prepare our societies for the changes caused by AI, and educate a new generation of AI innovators. In 2019 and 2020, it allocated over EUR 22 million in its AI activities. EIT Digital and EIT Health implement the vast majority of projects related to AI. The EIT Community currently supports 120 early-to-mid stage European start-ups working in the field of AI and already invested over EUR 3 million into these companies. In January 2021 the EIT and the EIC joined forces to fast track support to highly innovative start-ups, as well as to coordinate efforts to support women innovators and innovators from less represented regions . The EIC and EIT also aim to share data and intelligence on the innovative start-ups and SMEs they support, including measurements of impacts achieved. Outlook The Commission with the support of Member States will: -aim to strengthen the support and funding for the AI/Blockchain Investment pilot and support programme. Following the success and attractiveness of the pilot, the InvestEU programme 2021-2027 will continue to provide support investments in AI/blockchain through the EIB Group and national promotional banks in order to mobilise private investments; -fully implement the EIC under Horizon Europe and support disruptive innovation, with a focus on human-centric AI. This will be done through a mix of open and challenge-driven calls for funding. The 2021 EIC Pathfinder Challenge will focus on AI awareness research while the EIC Accelerator Challenge will foster strategic digital and health technologies, including medical AI. In addition, the Women TechEU initiative to be launched to support deep-tech start-ups founded and led by women; -through Startup Europe and the Innovation Radar, mobilise AI start-ups in national hubs and Horizon Europe that are eager to scale up, and to meet the demand of AI expertise of SMEs embarking on digital transformation. The EDIHs funded under Digital Europe will be used to create a marketplace and organise matchmaking events for technology supply and partnerships; -facilitate exchange of information, expertise and best practice between local, regional and national AI start-ups at European level (involving SMEs and start-ups and other relevant stakeholders) via the AI, Data and Robotics PPP, the EDIHs, the AI-on-demand platform (central AI toolbox and marketplace) and Startup Europe; and -take measures to facilitate the availability of open data and access to data for SMEs. Member States are encouraged to: -support AI start-ups and scale-ups in accessing finance for their growth, as well as to support SMEs in their digital transition in adopting AI technologies. Provided that the RRF objectives and conditions are met, Member States can make use of RRF funding to set up investment in the form of financial instruments (e.g. guarantees, loans, equity and venture capital instruments and the setting up of dedicated investment vehicles). Member States also have the possibility to contribute up to 4 % of their recovery and resilience plans’' total allocation to their compartment of InvestEU. III.ensure that AI works for people and is a force for good in society

The AI systems increasingly being taken up in healthcare, farming, education, employment, infrastructure management, energy, transport and logistics, space, public services, security, climate change mitigation and adaptation, can help to solve complex problems for the public good. The successful development and uptake of AI contribute to EU’s economic growth and global competitiveness and bring enormous benefits to our society and the environment. However, some uses of AI can also challenge rights protected by EU law and trigger new safety and security concerns , and affect labour markets. In the 2020 White Paper on AI , the Commission put forward the European approach on AI that builds on an ecosystem of excellence and an ecosystem of trust for AI . OUR KEY PROPOSALS TO ENSURE THAT AI WORKS FOR PEOPLE Promote the EU vision on sustainable and trustworthy AI in the world (Chapter 10) Develop a policy framework to ensure trust in AI systems (Chapter 9) Nurture talent and improve the supply of skills necessary to enable a thriving AI eco-system (Chapter 8) 8.Nurture talent and improve the supply of skills necessary to enable a thriving AI eco-system Overview of actions taken The 2018 Coordinated Plan identified the significant and persistent ICT skills gap as a key challenge to the development of AI in Europe. With the development of the AI market and the uptake of AI technologies, it is necessary to ensure the accessibility and uptake of AI products and services. To this end, the EU should facilitate the acquisition of broad computing skills and further the understanding of AI for all citizens. In order to remain globally competitive, the EU also needs professionals from diverse backgrounds with specialised AI skills, such as data modelling, architecture and semantics to maintain a strong position in AI research and contribute to the development and roll out of AI systems. Non-technical AI skills are equally important. Improvement in computing and AI skills for all is also needed to avoid job market polarisation and a possible rise in inequality within and between countries. The results of the 2020 survey of European enterprises suggest that one of the key barriers European companies face when adopting AI technologies is the availability of employees with adequate AI skills. Similarly, the analysis by the Joint Research Centre of the Commission suggests that the development of digital skills, the awareness of AI technologies through all levels of education, lifelong-learning programmes and specialised AI skills are necessary in order to equip everyone for AI-driven transformations, to maintain the EU’s strong position in AI research and to contribute to the development and roll out of AI systems. All Member States that have adopted national AI strategies have integrated the skills dimension into their strategies, as suggested in the 2018 Coordinated Plan. Measures proposed in the national strategies include, for example, reforms of the formal education systems to introduce or strengthen the teaching of computational thinking, computing and AI foundations at primary or secondary school, as well as initiatives to adapt lifelong learning and reskilling policies . In this context, the RRF also offers the unprecedented opportunity to support digital skills development, including in AI, at all levels of education (formal and informal) and training, as an important element to reach the 20 % digital target. As part of the objectives for the Recovery and Resilience Facility, developing digital skills at all levels is a condition to ensure that all Europeans can participate in society and take advantage of the digital transformation. Hence, in the Annual Sustainable Growth Strategy 2021, the Commission proposes a Reskill and Upskill flagship to encourage investments and reforms that Member States can undertake to improve digital skills, including AI and educational as well as vocational training for all ages. In September 2020, the Commission adopted a new Digital Education Action plan for the period 2021-2027. This action plan integrates specific actions for the improvement of AI skills into the larger context of promoting digital skills. The Commission has also supported EU Code Week , a volunteer-led movement that brings computational thinking, coding, robotics, tinkering with hardware, computer science, AI and digital skills to as many people as possible . At the end of 2020, in order to support Member States in their effort to increase the specialised education offer in AI, the Commission awarded grants to four university networks, SMEs and AI excellence centres to deliver excellent master’s programmes in AI, for a total of EUR 6,5 million. The selected networks should, with the support of the EU funding, jointly design and deliver high-quality and hands-on master’s programmes in different Member States, with a specific focus on human-centric AI, AI application for the public administration and AI for healthcare. All the programmes should also include AI ethics courses and part of the content should be made available online through the Digital skills and jobs platform translated into all EU languages . Outlook The Commission will: -As a part of the actions planned in the Digital Education Action Plan 2021-2027: -support traineeships in digital areas, extending the possibility of participating to vocational education students and teaching staff, in addition to university students, with an increased focus on AI skills and with particular attention to the principle of non-discrimination and gender equality; and -develop ethical guidelines on AI and data usage in teaching and learning for educators as well as the support of related research and innovation activities through Horizon Europe. This Action will build on the work of the High-Level Expert Group on AI on ethical guidelines. The guidelines will be accompanied by a training programme for researchers and students on the ethical aspects of AI and include a target of 45 % of female participation in the training activities; -support the development of new skills intelligence, under the Skills Agenda of July 2020, including at regional and sectoral level. Specifically, building on the work by Cedefop (Skills-OVATE project) and using AI technology to carry out big data analysis based on scraping job adverts to obtain real time information on current and emerging skills demand. In this context, a permanent online tool is to be created where real-time information will be published which all interested stakeholders can use; -support initiatives that facilitate the mutual recognition of AI specialised higher education programmes in the EU; -under the Digital Europe programme, support measures including design and implementation of specialised education programmes, modules and short-term training courses in key capacity areas, also for professionals in different sectors to become proficient in the use of digital technologies. The call for the specialised programmes will be launched in Q1/2 2021 and the short-term training courses in Q1 2022. All available opportunities and tools for digital skills development will be showcased on the Digital Skills and Jobs Platform;

-under the Horizon Europe programme, support Networks of AI excellence centres (as part of the AI lighthouse). Among other tasks, the centres would: -explore options to retain talent through closer collaboration with industry and public authorities; and -develop PhD programmes and AI modules that could be integrated in non-ICT education master programmes; -fund doctoral networks, postdoctoral fellowships and collaborative staff-exchange projects in AI under the Marie Skłodowska-Curie actions. The calls for Individual Fellowships and Innovative Training Networks (renamed Postdoctoral Fellowships and Doctoral Networks) are planned for Q2 2021. The calls for Research and Innovation Staff Exchanges (renamed Staff Exchanges) and COFUND are planned in Q4 2022; and -promote gender equality through Horizon Europe, including in the projects related to AI. The integration of the gender dimension into research and innovation content becomes a requirement by default across the whole programme. Starting in 2022, a new eligibility criterion to get access to Horizon Europe funding will be introduced. Public bodies, research organisations and higher education establishments will be required to have a gender equality plan for all Horizon Europe funded projects. Member States are encouraged to: -refine and implement the skills dimension in their national AI strategies, in collaboration with social partners, e.g. to: -promote the development of computational thinking of pupils, students and educators in formal, informal and non-formal education at all levels and support dedicated initiatives that encourage young people to choose AI subjects and related fields, such as robotics, as a career; -create outreach programmes for teachers on including AI in school, both in ICT skills and from a broader perspective; -increase the availability of training in AI, also by financing AI modules in humanities and social science master programmes, lifelong learning activities, training of judges, lawyers and public officials, as well as reskilling people from non-technical backgrounds in the basics of AI and the implications of it for their field of work; and -test, assess and, if successful, support the implementation of educational AI technologies in primary and secondary education to facilitate individual learning requirements (e.g. cognitive, AI-based tutoring); -exchange best practices on how to integrate AI into general education and other specialised programmes (such as healthcare, law, social sciences, business), and on promoting both broad and specialised knowledge on AI in lifelong learning; -take measures and exchange best practices to increase inclusion and diversity, i.e. to facilitate balanced AI teams and attract talent in AI education, especially postgraduate studies, and training, as well as development of AI technologies; and -make the best of the unique opportunity provided by the RRF to finance ambitious upskilling and reskilling initiatives as mentioned above. 9.Develop a policy framework to ensure trust in AI systems Trust is essential to facilitate the uptake of AI technologies. The European approach on AI, as proposed in the 2020 White Paper on AI, ‘aims to promote Europe’s innovation capacity in the area of AI while supporting the development and uptake of ethical and trustworthy AI across the EU economy. AI should work for people and be a force for good in society’ . Given the major social and environmental impacts of AI technologies, a human-centric approach to their development and use, the protection of EU values and fundamental rights such as non-discrimination, privacy and data protection, and the sustainable and efficient use of resources are among the key principles that guide the European approach. Overview of actions taken The Commission has put considerable effort into mobilising expertise, consulting with a wide spectrum of stakeholders (including social partners, non-governmental organisations, industry, academic community, regional authorities and Member States) and developing policy actions to facilitate trust in AI. Specifically, actions to facilitate trust have focused on issues relating to ethics, safety, fundamental rights, including the right not to be discriminated against, liability, the regulatory framework, innovation, competition, and intellectual property (IP). Focusing on fundamental questions of ethics and AI technologies, the Commission has established and facilitated work of the High Level Expert Group on AI (AI HLEG). The group has produced two main deliverables: Ethics Guidelines for Trustworthy Artificial Intelligence and an Assessment List for Trustworthy AI (ALTAI) . The Ethics Guidelines identified key principles and requirements for Trustworthy AI and the Assessment List provided an operational framework to support application of ethical guidelines by AI developers and users. The AI HLEG’s work has triggered important debates on the European vision and approach to AI policy, and provided input to the development of a regulatory framework on AI.

In February 2020, the Commission published a White Paper on AI and a Report on the safety and liability implications of AI, the internet of things and robotics. The White Paper and the report have outlined