New report highlights the importance of AI-enabled dual-use tech and the role of the EU’s startup ecosystem

A recent report by the European Commission and the StepUp StartUps Consortium highlights the increasing importance of AI-enabled dual-use technologies for Europe's technological competitiveness and strategic autonomy. This signifies a crucial phase where integrating AI across civilian and defense sectors will shape Europe's position in global value chains. The report underscores the need to foster innovation within the European startup and scale-up ecosystem. AI is becoming a key enabler across various capability areas, including autonomy, cybersecurity, and decision support, though it is not formally classified as a dual-use technology. European programs like Horizon Europe and the European Defence Fund, including the EU Defence Innovation Scheme (EUDIS), are placing significant emphasis on AI. The EIC Accelerator's recent opening to dual-use innovation reflects this trend. This shift impacts startups and scale-ups, as they play a critical role in developing dual-use AI capabilities. The report also highlights the need for better integration between civil research and defense programs to accelerate AI solutions from research to deployment. Stronger connections could facilitate shared definitions, aligned funding, and compatible testing environments, ultimately leading to greater operational maturity and addressing existing barriers. Despite challenges, Europe is witnessing the development of strong dual-use AI capabilities, particularly in security, transportation, and robotics, supported by dynamic hubs across the continent. With rising venture activity and specialized funds, the European ecosystem is poised to strengthen its position in dual-use AI. Initiatives like the Defence Equity Facility are further boosting the growth of defense and dual-use startups.