The European Union (EU) is struggling to compete in artificial intelligence (AI) investments, allocating only 4% of what the US spends. Regulatory challenges, underinvestment, and fragmented coordination hinder the EU’s ambition to become a technological leader. In 2024, the EU earmarked EUR 256 million for AI research, significantly less than the US’s USD 6 billion. The lack of large tech firms and substantial venture capital in Europe exacerbates the issue, prompting many companies to seek funding elsewhere. Former Italian Prime Minister Mario Draghi proposed increasing the R&D budget and investing in AI “factories” and semiconductor production to bridge this gap.