Summary Yes. Under the proposed Cloud and AI Development Act (CADA), Member States are legally required to align their national cloud and AI strategies with the "AI first" principle. Article 7(2)(a) explicitly mandates that these strategies must include "key objectives and priorities for cloud and AI adoption, in line with the 'AI first' principle," alongside a "governance and monitoring framework." This requirement ensures that AI is treated as a primary driver for process redesign rather than a secondary add-on. The principle is further reinforced in the objectives of the Centres for AI under Article 5(2)(b), creating a consistent mandate from national strategy down to regional implementation.

Detail

The proposed Cloud and AI Development Act (CADA), COM(2026) 502 final, establishes a comprehensive framework to strengthen Europe's cloud and AI ecosystem. A critical component of this framework is the obligation for Member States to adopt coordinated national strategies. These are not merely advisory documents; they are binding legislative requirements designed to harmonise national approaches with Union-level objectives and drive the digital transformation of both public and private sectors.

The Mandate for "AI First" in National Strategies

Article 7(1) of the proposal stipulates that Member States shall establish national cloud and AI strategies (the "national strategies") within one year of the Regulation's entry into force. These strategies must be consistent with the Regulation's objectives and contribute to the digital targets set under the Digital Decade Policy Programme.

The core requirement regarding the "AI first" principle is found in Article 7(2)(a). The text explicitly mandates that national strategies shall include:

"(a) key objectives and priorities for cloud and AI adoption, in line with the 'AI first' principle, as well as a governance and monitoring framework to achieve those objectives and priorities;"

This provision does more than suggest the use of AI; it embeds the "AI first" mindset into the structural planning of national digital policy. By requiring alignment with this principle, CADA ensures that Member States consider AI opportunities and needs as a primary factor when designing business processes, public services, and industrial strategies, rather than as a secondary technical add-on. The inclusion of a "governance and monitoring framework" in the same paragraph ensures that this principle is not just aspirational but is backed by institutional structures to track progress and ensure accountability.

What is the "AI First" Principle?

While CADA itself does not provide a standalone dictionary definition of "AI first," the principle is rooted in the European Commission's Apply AI Strategy, which the proposal explicitly references. The "AI first" principle urges organisations to reflect on their business processes by considering the needs and opportunities offered by AI, while simultaneously taking into account potential risks. It represents a shift from passive adoption to proactive integration, where AI is considered at the outset of process design to enhance efficiency, decision-making, and service delivery.

This principle is not limited to high-level strategy. It is a cross-cutting requirement that permeates the operational objectives of the Centres for AI (formerly European Digital Innovation Hubs). Article 5(2)(b) states that the objectives of these Centres shall include accelerating 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." This demonstrates that the mandate applies uniformly from the national strategic level down to local implementation and support mechanisms.

Governance, Monitoring, and Coordination

Article 7(2)(a) pairs the "AI first" objective with a mandatory "governance and monitoring framework." This means that Member States cannot simply declare an "AI first" ambition; they must establish the institutional structures necessary to track progress, ensure accountability, and adjust strategies as needed. This framework is essential for translating high-level principles into actionable outcomes, ensuring that public sector bodies are actually adopting AI solutions in their daily operations.

To ensure consistent implementation across the Union, Article 7(5) requires Member States to notify the Commission of their national strategies within three months of adoption. These strategies are subject to assessment at least every three years based on key performance indicators. Furthermore, Article 7(6) designates the European Artificial Intelligence Board (AI Board), established under the AI Act, to advise and assist Member States regarding the coordination of these national strategies. This coordination helps prevent fragmentation and ensures that the "AI first" principle is interpreted and applied uniformly across different Member States.

What this means for you

For public-sector procurement officers, digital transformation leaders, and national policymakers, the inclusion of the "AI first" principle in national strategies has direct implications for planning and execution.

  1. Proactive Process Redesign: You can no longer treat AI as a bolt-on technology for legacy systems. The "AI first" principle requires you to evaluate whether existing public service processes can be fundamentally improved or automated through AI before issuing a tender. Procurement specifications should reflect this by asking for AI-driven solutions that enhance decision-making or simplify administrative burdens, as outlined in Article 4(7) (operational objective 7).
  2. Alignment with National Strategy: Your procurement decisions and digital projects should align with the specific "AI first" objectives set out in your Member State's national strategy. If your national strategy prioritises AI in healthcare or mobility, your procurement plans should reflect these priorities. This alignment ensures that your spending contributes to the broader national and EU goals.
  3. Governance and Monitoring: Be prepared to demonstrate how your department is monitoring the impact of AI adoption. The governance framework required by Article 7(2)(a) means you may need to report on KPIs related to AI uptake, efficiency gains, or risk mitigation. Procurement officers should work with legal and data protection teams to ensure that "AI first" initiatives comply with the AI Act and GDPR, balancing innovation with fundamental rights.
  4. Leveraging Centres for AI: As Article 5 establishes a network of Experience and Acceleration Centres for AI, you should engage with these local hubs. They are tasked with supporting the integration of AI use cases in strategic sectors and public bodies, offering expertise that can help you implement "AI first" strategies effectively.

Common misconceptions

Misconception 1: "AI first" means AI must be used in every process. The "AI first" principle does not mandate that AI be applied universally. It requires that AI be considered as a primary option when designing or redesigning processes. If AI is not suitable for a specific task due to technical, ethical, or cost reasons, this should be documented as part of the decision-making process. The principle is about proactive consideration, not indiscriminate application.

Misconception 2: National strategies are optional guidelines. Under CADA, the adoption of a national cloud and AI strategy is a legal obligation for Member States (Article 7(1)). The inclusion of the "AI first" principle in Article 7(2)(a) is a mandatory component of these strategies. Non-compliance could lead to enforcement actions under EU law.

Misconception 3: "AI first" overrides other regulatory requirements. Adopting an "AI first" approach does not exempt public bodies from complying with the AI Act, GDPR, or other relevant EU laws. In fact, Article 7 requires strategies to include measures that ensure accessibility of high-quality data and prevent bottlenecks, implying a need for robust data governance. The "AI first" principle must be implemented within the bounds of existing legal frameworks, ensuring that AI adoption is both innovative and compliant.

Official sources

Related

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