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How European SMEs can ride the AI wave with EU funding


Let’s talk about something that’s shaping the future of business in Europe: digitalization and AI.

The European Commission is going all in on helping SMEs (Small and Medium Enterprises) boost their digital game through funding programs like Digital Europe Programme and Horizon Europe. If you’re running a tech startup, a manufacturing business, or you’re a digital consultant, this is something you definitely want to pay attention to.

Why is the EU pushing for digitalization?

SMEs are the backbone of Europe’s economy, but many are lagging behind in adopting AI, automation, and cybersecurity solutions. The EU sees digital transformation as a key driver of competitiveness, resilience, and growth. That’s why billions of euros are being poured into programs designed to help businesses go digital, scale up, and stay secure.

What funding is available for AI-powered innovation?

Digital Europe Programme (DEP) – This program focuses on practical AI adoption, supercomputing, cybersecurity, and advanced digital skills. If you’re an SME looking to integrate AI into your operations, this could be your ticket to funding. You can receive support for AI testing and experimentation facilities (TEFs), access to Digital Innovation Hubs (EDIHs) offering expert guidance and seek funding for cybersecurity and data-related projects.

But also Horizon Europe – More on the R&D side, Horizon Europe is for those developing cutting-edge AI solutions. If you have an innovative AI-driven product or service, this program offers grants for research and innovation in AI and automation, funding for collaborations between startups, universities, and corporation and specific calls focused on ethical and trustworthy AI!

But how can SMEs Tap into these opportunities?

1st rule: stay updated on calls for proposals, the EU regularly releases funding calls. Check the European Commission’s Funding & Tenders Portal and follow relevant Digital Innovation Hubs, then do a deep scouting into other sources (eg. as INTERREG portals)

Then, partner up, many grants favor consortiums—collaborating with universities, research centers, or other companies can increase your chances of success.

Don’t miss to leverage local support, EDIHs and national contact points (NCPs) can help guide you through the application process and provide technical assistance.

Finally, think beyond funding: many EU initiatives offer not just money but also training, networking, and access to cutting-edge tech infrastructures.

AI and digitalization aren’t just buzzwords—they’re the future of business. With EU funding available, there’s never been a better time for SMEs to innovate, automate, and secure their operations. Whether you’re a tech startup developing AI solutions or a traditional business looking to modernize, these programs can give you a serious competitive edge.

Ready to take your SME to the next level?