Summary Under the proposed Cloud and AI Development Act (CADA), Latvia, like all EU Member States, would be required to establish Experience and Acceleration Centres for AI (Centres for AI). As set out in Article 5, these centres must build on existing European Digital Innovation Hubs (EDIHs) to support SMEs, small mid-caps (SMCs), and public sector bodies in adopting cloud and AI technologies. Their primary role is to help organisations integrate AI use cases, accelerate digital transformation, and connect users with European providers of cloud and AI technologies. These centres are a mandatory component of Latvia's national cloud and AI strategy, which must be adopted under Article 7, and they operate as part of a wider EU-wide network to share expertise and resources.

Detail

The Cloud and AI Development Act (CADA) is a legislative proposal by the European Commission designed to strengthen Europe's cloud and AI ecosystem. A central pillar of this proposal is the creation of a demand-side support mechanism to drive the adoption of these technologies across the Union. Article 5 of the CADA proposal specifically addresses the establishment of Experience and Acceleration Centres for AI, creating a specific legal obligation for Latvia to adapt its existing digital infrastructure to meet these new goals.

What are the Experience and Acceleration Centres for AI?

According to Article 5(1) of the CADA proposal, "Each Member State shall establish Experience and Acceleration Centres for AI ('Centres for AI')." Crucially, the regulation does not mandate the creation of entirely new, standalone entities from scratch. Instead, it requires that these centres "shall build on the European digital innovation hubs established under Article 16 of Regulation (EU) 2021/694."

For Latvia, this means the existing network of European Digital Innovation Hubs (EDIHs) would likely be upgraded, repurposed, or formally designated to serve this new mandate. The objective is to leverage existing regional and local infrastructure to ensure broad geographical coverage while reducing the administrative burden of establishing new bodies. These centres are designed to act as regional and local accelerators, bridging the gap between advanced AI research and its practical application in the real economy.

Core Objectives and Tasks

Article 5(2) outlines three primary objectives that the Centres for AI in Latvia must pursue:

  1. Support integration and scaling: They must support the integration and scaling-up of AI use cases in strategic industrial and public sectors.
  2. Accelerate adoption: They must accelerate the broad adoption of cloud and AI technologies at regional and local levels, notably for SMEs, SMCs, and public sector bodies. This aligns with the 'AI first' principle mentioned in the CADA recitals, urging organisations to reflect on how AI can transform their processes.
  3. Leverage infrastructure: They must leverage relevant infrastructure to accelerate the development and fine-tuning of AI models and systems.

To achieve these objectives, Article 5(3) assigns specific, actionable tasks to the centres. For Latvian public-sector officers, procurement teams, and business leaders, the following tasks are particularly relevant:

  • Connecting with European Providers: The centres are explicitly tasked with helping organisations accelerate their digital transformation "by connecting organisations with European providers of cloud and AI technologies." This is a direct operational mechanism to support CADA's broader strategic goal of reducing dependence on non-EU hyperscalers and fostering a competitive European market.
  • Upskilling and Reskilling: The centres must ensure or provide access to relevant upskilling and reskilling schemes, "in close collaboration with the AI Skills Academy." This is crucial for public bodies that need staff capable of managing, overseeing, and procuring AI systems in compliance with both CADA and the AI Act.
  • Expertise Transfer: They facilitate the transfer of expertise across regions, ensuring that knowledge gained in one part of Latvia or the EU can be shared effectively.
  • Support for Start-ups and Spin-offs: They support the scaling-up of spin-offs and start-ups emerging from universities and incubators by facilitating access to clients and organisations seeking specialised AI services.

Governance and the EU-Wide Network

Article 5(5) states that Centres for AI shall have "substantial overall autonomy as regards their organisation, composition and working methods," provided they comply with the regulation's objectives. This allows Latvia to tailor the governance structure to its national context while meeting EU requirements.

Furthermore, Article 5(6) mandates the establishment of a network of Centres for AI. This network is designed to support collaboration and the exchange of best practices among centres across the EU. It also aims to provide specialised services across regions where required skills or compute capacity are not available locally. For Latvia, this means that if a specific AI capability or high-performance compute resource is not available domestically, the network mechanism could facilitate access to resources from other Member States, ensuring that Latvian entities are not disadvantaged by local capacity gaps.

Link to the National Strategy

The establishment of these centres is inextricably linked to Article 7 of CADA, which requires Member States to adopt national cloud and AI strategies. Latvia's national strategy must include measures to accelerate the development and adoption of cloud and AI, particularly among public sector bodies, SMEs, and SMCs.

Specifically, Article 7(2)(b) mandates that national strategies include "measures to accelerate the development and adoption of cloud and AI at national, regional and local level... including by supporting the Centres for AI referred to in Article 5 as entry points to the European AI innovation ecosystem."

Therefore, the operational plans for Latvia's Centres for AI will not be isolated initiatives; they will be a key deliverable within the broader national strategy required by CADA. The strategy must be notified to the Commission within three months of adoption and assessed at least every three years.

What this means for you

For public-sector procurement officers, IT leaders, and business owners in Latvia, the Experience and Acceleration Centres for AI represent a critical resource for navigating the new CADA requirements.

  1. Sourcing European Providers: CADA encourages the use of sovereign cloud and AI services. The Centres for AI are explicitly tasked with connecting organisations with European providers. When planning procurement for cloud or AI services, you should engage with your local Centre for AI to identify vetted, EU-based vendors that meet the necessary assurance levels. This is particularly important for public bodies that may face procurement obligations under Article 30 to use specific assurance levels.
  2. Capacity Building: Adopting AI requires new skills. The centres will provide access to upskilling schemes in collaboration with the AI Skills Academy. You should utilise these resources to train your staff on AI literacy, risk management, and the specific requirements of high-risk AI systems under the AI Act and CADA.
  3. Pilot Projects and Scaling: If your public body or SME is developing an AI use case, the Centre for AI can support the integration and scaling-up process. They can help you access testing infrastructure, connect you with relevant expertise, and facilitate the transfer of knowledge from other regions.
  4. Strategic Alignment: As Latvia develops its national cloud and AI strategy under Article 7, ensure that your department's or company's needs are communicated to the Centre for AI. The centre's role as an "entry point to the European AI innovation ecosystem" means it will be a hub for information on funding, best practices, and regulatory compliance.

Common misconceptions

"The Centres for AI are only for large tech companies." No. Article 5(2)(b) explicitly states that the centres must accelerate adoption for SMEs, SMCs, and public sector bodies. They are designed to be accessible to organisations of all sizes, particularly those lacking in-house AI expertise.

"Latvia can choose not to establish these centres." No. Article 5(1) uses the mandatory language "Each Member State shall establish." While Latvia has autonomy in how it organises them (by building on existing EDIHs), the establishment of the centres is a legal obligation under the proposed regulation.

"The centres will provide the AI software directly." No. The centres do not necessarily develop or sell the AI systems themselves. Instead, they act as facilitators and connectors. Article 5(3)(a) specifies their role is to help organisations access technologies and connect with providers. They provide expertise, testing support, and market access, not necessarily the end-product software.

"This is separate from the AI Act." While CADA and the AI Act are distinct instruments, the Centres for AI will play a role in supporting compliance with the AI Act by providing guidance, skills, and access to compliant tools. The CADA proposal is designed to reinforce the objectives of the AI Act by ensuring the infrastructure and skills exist to support trustworthy AI deployment.

Official sources

Related

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