Summary As proposed, the Cloud and AI Development Act (CADA) accelerates AI uptake at regional and local levels primarily by establishing a network of Experience and Acceleration Centres for AI. These centres, built on existing European Digital Innovation Hubs, provide SMEs, small mid-caps, and local public authorities with the expertise, testing infrastructure, and skills training needed to adopt AI technologies. The framework mandates that Member States include measures for regional and local AI acceleration in their national strategies, ensuring a coordinated push for adoption across all tiers of government. Crucially, the proposal links this adoption to the uptake of European cloud services, aiming to reduce strategic dependencies while fostering local innovation.

Detail

The Cloud and AI Development Act (CADA) addresses the challenge of fragmented AI adoption by creating a structured, EU-wide support system focused on regional and local implementation. The proposal recognises that while large enterprises may have the resources to adopt AI independently, regional and local public authorities, as well as smaller businesses, often lack the technical expertise, infrastructure, and confidence to integrate these technologies effectively. To bridge this gap, CADA introduces specific operational objectives and institutional mechanisms designed to drive adoption at the grassroots level, ensuring that the benefits of the AI revolution are distributed evenly across the Union.

Operational Objective 8: Regional and Local Adoption

The core mechanism for driving local uptake is embedded in the Cloud and AI Leadership Initiatives. Under Article 4(8), the proposal establishes "operational objective 8," which explicitly aims to:

  • Promote the broad adoption of AI by private and public sector organisations, including SMEs and small mid-caps (SMCs), through the network of Experience and Acceleration Centres for AI (referred to as "Centres for AI").
  • Develop a common cloud and AI curriculum, drawing on the network of Centres for AI and other relevant European initiatives.
  • Promote the sharing of public sector data centre services and cloud computing services by supporting a European public sector cloud federation.
  • Support the procurement of data centre services and cloud computing services for Union entities and public sector bodies.

This objective ensures that regional and local adoption is not left to chance but is actively supported through targeted initiatives. By focusing on SMEs and SMCs, the regulation acknowledges that these entities form the backbone of the local economy and are critical for the widespread diffusion of AI technologies. The objective also explicitly ties AI adoption to the uptake of cloud services provided by European providers, reinforcing the dual goal of technological advancement and strategic autonomy.

The Network of Centres for AI

To deliver on these objectives, Article 5 mandates the establishment of Experience and Acceleration Centres for AI in each Member State. These centres are not new, standalone entities but are built upon the existing network of European Digital Innovation Hubs (EDIHs). This leverages existing infrastructure and expertise, ensuring a faster rollout and deeper local penetration.

Article 5(2)(b) specifies that one of the key objectives of these Centres for AI is to "accelerate the broad adoption of cloud and AI technologies at regional and local levels, notably for SMEs, SMCs and public sector bodies, in line with the 'AI first' principle."

The "AI first" principle, referenced in the national strategies (see below), encourages organisations to proactively consider how AI can improve their business processes and public services. The Centres for AI act as the physical and operational hubs where this principle is put into practice. They provide:

  • Expertise and Testing: Access to AI technologies and expert guidance to help local authorities and businesses integrate AI into their operations.
  • Skills Development: Collaboration with the AI Skills Academy to ensure upskilling and reskilling schemes are available locally.
  • Innovation Support: Assistance in scaling up spin-offs and start-ups emerging from universities and incubators, fostering a local ecosystem of AI innovation.

By decentralising support, CADA ensures that a local municipality in a peripheral region has access to the same level of AI expertise as a capital city, reducing the digital divide between regions. Furthermore, Article 5(3)(a) tasks these centres with helping organisations accelerate their digital transformation by connecting them with European providers of cloud and AI technologies, directly supporting the uptake of sovereign solutions.

National Strategies with a Local Focus

While the Centres for AI provide the operational support, Article 7 ensures strategic alignment. Member States are required to adopt national cloud and AI strategies within one year of the regulation's entry into force. Crucially, these strategies must not be high-level abstractions; they must include concrete measures for local implementation.

Article 7(2)(b) requires that national strategies include "measures 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 binds national governments to the success of local adoption. It ensures that funding, policy support, and regulatory clarity flow down to the regional and local levels. The national strategies must also align with the Digital Decade targets, including the goal of at least 75% of enterprises adopting cloud computing services, big data, and AI. By integrating the Centres for AI as key entry points, the regulation creates a cohesive funnel where national strategy informs local action, and local feedback informs national policy.

Uptake of European Cloud Services

A significant barrier to local AI adoption is the reliance on non-European cloud providers, which raises sovereignty and security concerns. CADA addresses this by linking AI uptake with the adoption of European cloud services. The Centres for AI are tasked with connecting organisations with European providers of cloud and AI technologies (Article 5(3)(a)). This dual focus ensures that as local authorities and SMEs adopt AI, they also contribute to the growth of the European cloud ecosystem, reducing strategic dependencies on third-country providers. The proposal envisions that the "AI first" principle, when applied through these local centres, will naturally steer public procurement and private investment towards European solutions, thereby strengthening the Union's technological sovereignty from the ground up.

What this means for you

For public-sector procurement officers, local government administrators, and SME leaders, CADA offers a clear roadmap and a new set of resources for digital transformation.

  1. Access to Local Expertise: You no longer need to seek out international consultancies or large tech vendors for initial AI guidance. The Centres for AI in your region will serve as a first point of contact for advice, testing, and skills training. They can help you identify appropriate AI use cases and connect you with European providers.
  2. Strategic Alignment: Your local digital transformation plans should align with your Member State's national cloud and AI strategy. Ensure that your procurement processes and digital roadmaps reflect the "AI first" principle and leverage the support available through the Centres for AI.
  3. Procurement Opportunities: The regulation encourages the procurement of innovation and the use of European cloud services. As a public buyer, you will have access to common procurement frameworks and the EuroCloud Federation, which can simplify the process of acquiring secure, sovereign cloud and AI services.
  4. Skills Development: Utilise the Centres for AI to upskill your staff. The common cloud and AI curriculum developed under the regulation will provide structured training materials, helping your team build the competencies needed to manage and oversee AI systems effectively.

Common misconceptions

  • "CADA only applies to large enterprises." Incorrect. The regulation explicitly targets SMEs, small mid-caps, and public sector bodies at the regional and local level. The Centres for AI are specifically designed to support these smaller entities that may lack in-house AI expertise.
  • "The Centres for AI are new, expensive bureaucracies." Incorrect. They are built on the existing network of European Digital Innovation Hubs. This means they leverage existing infrastructure, staff, and relationships, ensuring efficiency and reducing administrative overhead.
  • "National strategies are separate from local action." Incorrect. Article 7 explicitly requires national strategies to include measures for regional and local adoption. National and local levels are interconnected, with the Centres for AI acting as the bridge between high-level strategy and on-the-ground implementation.
  • "CADA is only about AI software." Incorrect. The proposal explicitly links AI adoption to the uptake of cloud infrastructure. The Centres for AI are mandated to promote European cloud services, ensuring that the underlying infrastructure is also sovereign and resilient.

Official sources

Related

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