Apply AI Strategy: the EU’s overarching AI sectoral strategy

The new Commission’s strategy outlines concrete measures to harness the transformative potential of AI across the industry and the public sector. It promotes a shift towards an AI first policy approach, encouraging companies to integrate AI as part of their solutions. The Apply AI Strategy is structured in three main sections:

• Introducing sectoral flagships to boost AI use in key industrial sectors of the EU economy and in the public sector;
• Addressing cross-cutting challenges (e.g., enable an AI-ready workforce across sectors, or leverage advanced AI capabilities);
• Establishing a single governance mechanism to pioneer a sectoral approach and foster a dynamic process of collaboration among stakeholders.

Among the key industrial sectors identified, the manufacturing, engineering and construction sector appears particularly relevant for construction machinery manufacturers given the Commission’s emphasis on production processes. It covers a wide array of interrelated segments spanning from traditional and high-tech industries to construction or logistics.

The strategy supports the development of frontier AI model and AI agents tailored to the sector’s needs (measure expected in Q4 2026). This action stems from Data Spaces for Manufacturing and looks to the upcoming Data Union Strategy which will complement the Apply AI Strategy and is expected to be released by late October. In addition, the Commission announced fundings for the development of Acceleration Pipelines to support AI-powered solutions.

Correspondingly in robotics, the strategy supports setting up a Catalyst for the uptake of European Robotics in collaboration with ADRA, with funding for AI-powered robotics starting in Q4 2025. In this context, the Commission will fund the development of sectoral Acceleration Pipelines for the adoption of AI-powered robotics in light of the cross-cutting nature of this sector.

In the energy sector, the Commission will begin supporting the development of AI models for forecasting, optimisation, and digital twins in Q1 2026, aiming to promote AI adoption and enhance grid management and energy efficiency. A standardisation request addressing the energy impact of AI is planned for Q4 2026.

In addition, the Apply AI Strategy addresses the cross-cutting challenges ahead. European Digital Innovation Hubs that serve as intermediaries to facilitate the adoption of advanced digital technologies will be transformed into Experience Centres for AI. These centres aim to facilitate AI deployment across sectors, including construction.
The Frontier AI Initiative will connect industrial and academic actors to accelerate Europe’s capabilities in AI. While the strategy highlights opportunities for SMEs, it focuses on cost and complexity as barriers, without sufficiently addressing the regulatory burden posed by the AI Act.

Another key section identified by the Commission is the establishment of a single governance mechanism. The strategy introduces an AI Observatory to provide robust indicators to assess the impact of AI across the various sectors, monitor developments and trends. The Apply AI Alliance will also serve as a coordination forum to connect stakeholders with policymakers.

Although the industry’s expectations, the strategy does not introduce any simplification measures on the AI Act implementation. However, the AI Act Service Desk serves as a hub to access all relevant information about the AI Act and for compliance, though its advice is not legally binding. The Commission will prepare further guidelines on the practical application of the AI Act, addressing the classification of AI systems as high-risk, and the AI Act’s interplay with other Union law, covering relevant sectoral legislation (e.g., machinery, radio equipment).

CECE will continue to monitor the developments around the implementation of the strategy’s relevant sectoral measures. The Secretariat remain available to support its members throughout the next steps.

To know more on the strategy, please find here the Commission’s Q&A document.