European Commission Earmarks €1.3bn for Cybersecurity & AI

The European Commission has adopted a €1.3bn work programme to cover cybersecurity, AI and digital skills for businesses and public organisations in the EU. 

The programme, to be delivered between 2025 and 2027 under the Digital Europe Programme (DIGITAL), is designed to boost access to key technologies critical for the continent’s tech sovereignty and improve security posture.

It aims to enhance cyber resilience through solutions like the EU Cybersecurity Reserve, which will improve the security of critical infrastructure such as healthcare institutions and submarine cables. 

The programme targets the deployment and uptake of digital technologies across the public and private sectors and will focus on areas such as AI, cloud computing, cyber resilience and advanced digital skills. 

It will also support public services and education providers through targeted digital upgrades. All initiatives are set to align with existing EU legislation, such as the Artificial Intelligence Act.

“Securing European tech sovereignty starts with investing in advanced technologies and in making it possible for people to improve their digital competences,” says Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy.

Cybersecurity and maintaining resilience

DIGITAL will contribute towards building cyber resilience across Europe. The EU Cybersecurity Reserve—designed to support critical infrastructure including hospitals and undersea data cables—will be expanded through new investment. 

This reserve acts as a shared toolset of security solutions that EU Member States can draw on during digital emergencies.

Under the European Commission, the cybersecurity of hospital and healthcare providers is a critical objective, particularly with greater digitalisation and the adoption of new technologies such as AI. 

The Cybersecurity Reserve will be delivered as part of the EU Cyber Solidarity Act, designed to improve preparedness, detection and response to cybersecurity instances across the EU.

The Solidarity Act is designed to protect the EU, its people and businesses from significant and large-scale cybersecurity threats and attacks. 

It includes a European Cybersecurity Alert System consisting of several security operation centres (SOCs) connected across the EU. 

These use advanced technology including AI and data analytics to monitor, detect and respond to threats and malicious actors. 

In addition, the Solidarity Act includes a Cyber Emergency Mechanism designed to improve preparedness and response in three areas:

• Preparedness actions: testing crucial industry sectors such as finance, energy and healthcare for potential weaknesses. 
• The EU Cybersecurity Reserve: consisting of incident response services from private providers that can be deployed Member States. 
• Mutual collaboration and assistance: driving better collaboration for improved cyber response. 

AI deployment, data spaces and virtual environments

Aside from cybersecurity, AI remains a central priority for DIGITAL. 

Funding will back the development and wider use of Gen AI models, including in health and social care. 

A major share of the investment will support immersive environments, often referred to as ‘virtual worlds’, to test how Gen AI applications perform in practical, sector-specific settings.

The Commission will also fund deployment of energy-efficient common data spaces, which are shared environments for storing and processing data. 

These data spaces are important for the EU’s AI Factories initiative, a plan to build Gen AI models tailored to public services and business needs.

Implementation of the AI Act, a legal framework that regulates the development and use of artificial intelligence in the EU, is another key objective. Funding will help ensure compliance and promote the responsible use of AI in line with EU values.

Further support will be provided through the European Digital Innovation Hubs. These offer companies and public sector organisations access to testing facilities, technical advice and skills training, enabling them to adopt and use AI solutions efficiently.

STEP Seal to connect projects with future funding

DIGITAL will also back innovation through the Strategic Technologies for Europe Platform (STEP). 

This platform issues a quality label—the STEP Seal—to promising technology projects that helps projects improve their visibility and increases their chances of attracting both public and private investment.

DIGITAL is the first EU programme dedicated entirely to deploying digital technology for businesses and citizens.

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