Generative AI and foundation models in the EU: uptake, opportunities, challenges, and a way forward

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<title>Generative AI and foundation models in the EU: uptake, opportunities, challenges, and a way forward</title>
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<namePart>Balland, Pierre-Alexandre </namePart>
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<namePart>European Economic and Social Committee</namePart>
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<publisher>The European Economic and Social Committee (EESC)</publisher>
<dateIssued>2025</dateIssued>
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<abstract displayLabel="Summary">This report examines the burgeoning generative artificial intelligence (GenAI) and foundation models landscape within the European Union, and analyses its impact, technological advancements, and regulatory implications. It details the GenAI value chain, identifying key players and investment trends, revealing a significant US dominance. The report then explores GenAI applications across various sectors (automotive, renewable energy, and education), highlighting opportunities and challenges. A SWOT analysis assesses the EU's position as a producer and as a user of GenAI. The report concludes with policy recommendations for fostering a competitive, ethical, and inclusive European AI ecosystem, including identifying needs for increased investment, more skills development, and greater regulatory clarity, as well as a need for enhanced collaboration with civil society organisations</abstract>
<note type="statement of responsibility">Pierre-Alexandre Balland... [et al.], Centre for European Policy</note>
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