Charting the Course: Scaling AI in Europe – Overcoming Challenges and Driving Growth

EU-Startups at AI Policy Day: Scaling AI in Europe Event

On the 11th of December 2025, EU-Startups took part in the AI Policy Day: Scaling AI in Europe event hosted by the European Commission. The full-day high-level event was organized in collaboration with the StepUp StartUps initiatives and the Innovation Radar Bridge at the AI House in Amsterdam.

The event brought together a diverse group of participants including policymakers, startup founders, corporate leaders, investors, and researchers. The focus was on constructive discussions aimed at accelerating the adoption of AI in Europe while maintaining values of responsibility and trustworthiness.

Throughout the event, there was a consensus that Europe’s position in AI is stronger than often perceived. Participants highlighted the continent’s robust research base, well-established industrial ecosystems, and a growing network of AI hubs as key assets for long-term competitiveness.

Regulation, including the EU AI Act, was viewed not as a barrier to innovation but as a means to foster trust, provide legal certainty, and enable responsible AI deployment. Clear and coherent regulatory frameworks were seen as supporting competitiveness, with efforts to ensure efficient implementation for innovation and market uptake.

The discussions emphasized Europe’s strengths in AI, including its research base, industrial ecosystems, talent pipelines, and access to sector-specific data. Recent data indicated that Europe is a leader in AI talent, positioning it well for domain-focused and agentic AI solutions.

Challenges in scaling AI companies, particularly in late-stage investment, were acknowledged. While early-stage funding is strong, securing financing rounds above €100 million remains a hurdle. Improving access to growth capital through institutional investors and aligning public and private financing instruments were key discussion points.

The StepUp StartUps consortium and the Innovation Radar Bridge played pivotal roles in shaping the event’s content and analytical focus. The EU-funded initiative, with partners such as Barrabes.biz, DEEP Ecosystems, and Startup Europe Regions Network, provided data-driven insights on AI ecosystem dynamics.

Insights from the newly launched Innovation Radar Bridge report were shared, highlighting AI startup and investment activity across 10 key industrial verticals. The event featured contributions from stakeholders like Marietje Schaake from Stanford University, European Commission’s Eoghan O’Neill, and TNO’s Marc Zegveld.

The discussions on policy, talent, and investment were forward-looking, reflecting a commitment to advancing AI adoption in Europe while upholding values and delivering societal benefits. Continued dialogue between policymakers and ecosystem actors was emphasized to translate AI strengths into sustainable impact.