Summary Under the proposed Cloud and AI Development Act (CADA), Member States are legally required to embed support for Experience and Acceleration Centres for AI (β€˜Centres for AI’) directly into their national cloud and AI strategies. Article 7(2)(b) explicitly mandates that these strategies include measures to accelerate the adoption of cloud and AI at national, regional, and local levels, specifically by supporting the Centres for AI as "entry points to the European AI innovation ecosystem." This requirement ensures that high-level strategic planning translates into tangible operational support for public bodies, small and medium-sized enterprises (SMEs), and small mid-caps (SMCs), bridging the gap between policy and practical implementation.

Detail

The proposed Cloud and AI Development Act (CADA) establishes a dual-pillar architecture for strengthening Europe’s digital ecosystem: high-level strategic planning at the national level and operational execution through a decentralized network of local hubs. The legal mechanism binding these two elements is found in Title II of the proposal, which creates a direct dependency between the mandatory national strategies under Article 7 and the operational Centres for AI established under Article 5.

The Mandate for National Strategies (Article 7)

Article 7 imposes a binding obligation on all Member States to adopt a national cloud and AI strategy within one year of the Regulation’s entry into force. These strategies are not merely advisory documents; they are the primary vehicle for ensuring coherence with the Regulation’s broader objectives of technological sovereignty, market competitiveness, and the reduction of dependencies on third-country providers.

Crucially, Article 7(2) defines the minimum content requirements for these strategies. Point (b) of this article sets a specific, non-negotiable requirement:

β€œmeasures to accelerate the development and adoption of cloud and AI at national, regional and local level, particularly among public sector bodies, SMEs and SMCs, including by supporting the Centres for AI referred to in Article 5 as entry points to the European AI innovation ecosystem;”

This provision creates a direct legal link. A national strategy cannot be considered compliant under CADA if it fails to outline how it will support the Centres for AI. The strategy must define the specific financial, administrative, or operational measures that will enable these centres to function effectively as the primary interface for smaller entities and public administrations seeking to integrate AI. By explicitly naming SMEs and SMCs, the proposal acknowledges that these entities often lack the internal resources to navigate complex AI markets without dedicated support structures.

The Role of Centres for AI (Article 5)

To understand the scope of support required by national strategies, one must examine the mandate of the Centres for AI themselves, as set out in Article 5. These centres are required to build upon the existing network of European Digital Innovation Hubs (EDIHs), refocusing them specifically on AI and cloud capabilities.

The primary objectives of these centres, listed in Article 5(2), are to:

  1. Support the integration and scaling-up of AI use cases in strategic industrial and public sectors.
  2. Accelerate the broad adoption of cloud and AI technologies at regional and local levels, notably for SMEs, SMCs, and public sector bodies.
  3. Leverage relevant infrastructure to accelerate the development and fine-tuning of AI models and systems.

Article 5(3) further details the specific tasks that national strategies must facilitate. These tasks include helping organisations accelerate their digital transformation by connecting them with European providers, ensuring access to upskilling and reskilling schemes (in collaboration with the AI Skills Academy), facilitating the transfer of expertise across regions, and supporting the scaling-up of spin-offs and start-ups emerging from universities and incubators.

The Synergy: Strategy Meets Execution

The linkage between Article 7 and Article 5 ensures that the Centres for AI are not isolated pilot projects but are embedded within a coherent national policy framework. The national strategy acts as the roadmap, identifying specific gaps in AI adoption within a Member State, while the Centres for AI act as the delivery mechanism.

For example, if a national strategy identifies a lack of AI literacy among local public administrations or a shortage of AI talent in the SME sector, Article 7(2)(b) requires the strategy to include measures to address this. The most effective measure, as prescribed by the text, is supporting the local Centre for AI to deliver training, technical advice, and hands-on assistance. This creates a feedback loop where the Centre’s operational data can inform future updates to the national strategy. Under Article 7(5), Member States must assess their national strategies at least every three years based on key performance indicators, ensuring that the support provided to Centres for AI remains dynamic and responsive to emerging technological and market developments.

Furthermore, the strategy must ensure these measures are consistent with the Digital Decade Policy Programme targets. Recital 32 notes that national strategies should be aligned with the target of cloud and AI adoption by at least 75% of Union enterprises. By positioning Centres for AI as the entry point, CADA aims to democratize access to AI expertise, preventing a concentration of capability solely in large multinational corporations or central government IT departments.

What this means for you

For public-sector procurement officers, digital transformation leads, and SME owners, this framework clarifies your role and the resources available to you.

  1. Identify Your Entry Point: Your national government is required to designate and support Centres for AI. As a public body or an SME, you should identify your regional or national Centre for AI as the primary resource for AI-related procurement support, technical advice, and skills development. These centres are the designated "front door" to the European AI innovation ecosystem.
  2. Leverage Strategic Support: When drafting internal digital transformation plans, align them with the measures outlined in your national cloud and AI strategy. If your strategy includes funding or support mechanisms for Centres for AI, you may be eligible for grants, technical assistance, or co-investment opportunities to pilot AI projects. The strategy is the document that unlocks these resources.
  3. Procurement of Innovation: Article 33 of CADA encourages the procurement of innovation in cloud and AI. The Centres for AI are tasked with facilitating matchmaking between public buyers and innovative European SMEs and start-ups. Engaging with these centres can help you navigate complex procurement procedures for AI systems, ensuring compliance with both CADA and the EU AI Act.
  4. Skills Development: Use the Centre for AI to access upskilling schemes. Article 5(3)(b) tasks these centres with ensuring access to relevant training in collaboration with the AI Skills Academy. This is critical for building the internal competency needed to manage AI contracts, oversee AI deployers, and ensure that your organisation can effectively utilise the cloud and AI technologies it procures.

Common misconceptions

  • Misconception: Centres for AI are optional add-ons.
    • Reality: Under Article 5, Member States shall establish these centres. Under Article 7(2)(b), national strategies must include measures supporting them. They are mandatory components of the CADA framework, not voluntary initiatives that Member States can ignore.
  • Misconception: National strategies are static documents.
    • Reality: Article 7(5) requires Member States to assess their national strategies at least every three years based on key performance indicators. The support provided to Centres for AI must be dynamic and responsive to emerging technological and market developments, ensuring the ecosystem evolves alongside the technology.
  • Misconception: Centres for AI only serve the private sector.
    • Reality: Article 5(2)(b) explicitly lists "public sector bodies" alongside SMEs and SMCs as key beneficiaries. The mandate includes supporting the integration of AI in strategic public sectors, making them vital resources for government digitalisation and public service delivery.
  • Misconception: The Centres are just for training.
    • Reality: While training is a key component, Article 5(3) outlines a broader mandate including facilitating digital transformation, connecting organisations with providers, and supporting the scaling of spin-offs. They are comprehensive innovation hubs, not just training centres.

Official sources

Related

This is general information about a draft EU regulation, not legal advice.