Summary As proposed, the Cloud and AI Development Act (CADA) requires every EU Member State to adopt a national cloud and AI strategy within one year of the regulation's entry into force. For public-sector buyers, this strategy is not merely a high-level policy document; it serves as the mandatory roadmap for aligning procurement activities with EU sovereignty and innovation goals. Specifically, the strategy must outline concrete measures to accelerate AI adoption among public bodies, support the network of Centres for AI, and integrate procurement of innovation mechanisms to drive the uptake of sovereign cloud solutions.

Detail

Under the proposed CADA, Member States are legally bound to establish national cloud and AI strategies (referred to in the text as "national strategies") to ensure coherence with the regulation's broader objectives of strengthening the EU's technological sovereignty and industrial competitiveness. This obligation is codified in Article 7, which mandates that these strategies be established by the date of entry into force plus one year.

For public-sector procurement officers, the national strategy acts as the primary interface between high-level EU policy and local purchasing decisions. It translates the EU's ambition for a "sovereign cloud" into actionable national targets. The strategy is not optional guidance; it is a statutory requirement that dictates how Member States will monitor, fund, and prioritize cloud and AI investments.

Mandatory Content Relevant to Buyers

Article 7(2) specifies the minimum content of these national strategies. Several sub-provisions are directly relevant to public-sector buyers and their procurement processes, creating a direct link between national policy and tendering obligations:

  • Accelerating Adoption (Article 7(2)(b)): The strategy must 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." This explicitly tasks Member States with creating pathways for public bodies to move away from legacy or non-compliant systems toward approved sovereign alternatives. For buyers, this means their procurement plans will likely be evaluated against these national acceleration metrics.
  • Sector-Specific Deployment (Article 7(2)(c)): Strategies must detail "measures to support the broad deployment and uptake of AI in strategic industrial and public sectors, including in healthcare, energy and mobility." Procurement teams in these critical sectors will find that their requirements for AI systems are shaped by these national priorities, ensuring that purchased solutions align with broader industrial policy goals.
  • Procurement as a Policy Tool (Article 7(2)(f)): Crucially, the strategy must include "measures to support the development of cloud and AI capabilities and promote excellence and innovation, including through public procurement measures, and public procurement of innovation measures set out in Article 33." This links the national strategy directly to the CADA's specific procurement rules. It signals that public procurement will be used not just to buy services, but to stimulate the market for European cloud and AI technologies.

The Role of Procurement of Innovation

The reference to Article 33 in the national strategy requirements is significant. Article 33 mandates that Member States monitor their use of "procurement of innovation" in cloud and AI. It sets an objective for Member States to ensure that at least 25% of their procurement for cloud computing services and AI systems is awarded to innovative SMEs.

Therefore, the national strategy must include plans on how the Member State intends to achieve this 25% target. For procurement officers, this means:

  1. SME-Friendly Procedures: You will need to design tenders that lower barriers for small and medium-sized enterprises (SMEs) and small mid-caps (SMCs), such as dividing contracts into lots or simplifying administrative requirements.
  2. Monitoring and Reporting: You will be required to report on SME participation trends, the number of contracts awarded to SMEs, and the share of cross-border SME participation. This data feeds directly into the national strategy's monitoring framework.

Supporting the Network of Centres for AI

The national strategy is also the vehicle for supporting the Centres for AI (formerly European Digital Innovation Hubs). Article 7(2)(b) explicitly mentions supporting these Centres as "entry points to the European AI innovation ecosystem."

Procurement teams are expected to engage with these Centres for technical assistance, market consultations, and guidance on complex AI procurements. The national strategy will outline how funding and resources will be allocated to these Centres, ensuring they can provide the necessary support to public buyers who may lack in-house expertise in sovereign cloud criteria or AI risk assessments.

What this means for you

If you are a public-sector procurement officer or a legal advisor to a contracting authority, the introduction of mandatory national cloud and AI strategies changes your operational landscape in three key ways:

1. Alignment with National Targets

Your procurement plans can no longer be isolated from national policy. When drafting your annual procurement strategy for cloud or AI services, you must review your Member State's national cloud and AI strategy. You need to identify the specific measures outlined in Article 7(2)(b) and (c) that apply to your sector (e.g., healthcare or energy). Your procurement documents should demonstrate how they contribute to these national acceleration and deployment goals.

2. Active Use of Innovation Procurement

The requirement in Article 7(2)(f) to support innovation through procurement means you cannot default to standard, off-the-shelf purchases for advanced AI needs. You are expected to utilize the "procurement of innovation" mechanisms described in Article 33. This involves:

  • Conducting preliminary market consultations.
  • Using matchmaking platforms to connect with European SMEs and startups.
  • Developing public contract clauses that are favorable to innovative SMEs.
  • Tracking your performance against the 25% SME award target.

3. Leveraging Centres for AI for Compliance

Compliance with the CADA's sovereignty framework (Union Assurance Levels) can be technically complex. The national strategy's commitment to supporting Centres for AI means you have a designated resource for help. You should engage with your local Centre for AI early in the procurement process. They can assist with:

  • Understanding the technical requirements of Union Assurance Levels 1–4.
  • Identifying suitable European providers.
  • Providing templates for risk assessments required under Article 29.

Common misconceptions

Misconception 1: The national strategy is just a political document with no legal force. Reality: Under Article 7, the national strategy is a legal obligation. Member States must notify the Commission of their strategies and assess them at least every three years. Procurement officers are expected to align their activities with the measures detailed in these strategies, particularly regarding the adoption of sovereign cloud services and support for SMEs.

Misconception 2: Public buyers can ignore the strategy if they are procuring standard IT services. Reality: The CADA applies to "cloud computing services" and "AI systems." If your procurement falls within this scope, you are subject to the sovereignty framework. The national strategy dictates how your Member State implements this framework. Ignoring it may lead to procurement decisions that conflict with national sovereignty risk assessments, potentially requiring you to migrate to compliant providers within 12 months under Article 29(6).

Misconception 3: The 25% SME target is a soft guideline. Reality: Article 33(4) states that Member States "shall pursue as objective" the 25% target. While "pursue as objective" allows for some flexibility, it is a binding policy goal that must be included in the national strategy. Procurement officers will be monitored and reported on regarding their contribution to this target, making it a key performance indicator for public procurement departments.

Related

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