As AI reshapes industries and societies around the globe, Europe is stepping forward with a bold new strategy to lead the future. Earlier this month, the European Commission unveiled its AI Continent Action Plan - an ambitious roadmap designed to transform Europe's industrial base, talent pipeline, and innovation ecosystem into world-class engines of AI excellence. Some of the key initiatives include the establishment of AI Factories and Gigafactories, a dramatic scaling of AI research hubs, and a commitment to tripling AI data centre capacity over the next seven years.

For Belgium and Luxembourg, these developments are more than encouraging: they have the potential to be a game changer. Two reasons in particular stand out:

• First, Luxembourg has been selected by the EuroHPC Joint Undertaking as one of five sites for Europe’s first AI Factories, positioning the country at the heart of Europe’s IT infrastructure modernisation. Set to launch next year, this facility will provide the computing power, research capabilities, and collaboration opportunities needed to accelerate AI innovation across Europe.
• Second, Belgium’s adoption of the National Convergence Plan for the Development of AI aims to cement the country’s position as a #SmartAINation, advancing AI adoption across industries, education, and government.

But while there is clear momentum with AI adoption accelerating, Europe, like other regions, still faces a key challenge: bridging the AI readiness gap. Scaling AI successfully requires more than ambition. It demands the right infrastructure, data governance, robust security, and a skilled workforce prepared to manage the opportunities to implement AI effectively.

The extent of this paradox is revealed in AI-specific insights from the Kyndryl Readiness Report, a global survey of 3200 business executives combined with exclusive data from Kyndryl Bridge, our AI-driven digital business platform. While 86% of industry leaders are confident their AI implementation is best-in-class, only 29% feel their position is ready for future risks. Even in a region investing heavily in AI challenges around data privacy, regulatory complexity, talent shortages, and legacy system modernisation remain formidable obstacles to scaling impact.

For Belgium and Luxembourg, the readiness paradox is real. Despite strong government support and growing investments, many organisations must still address critical gaps, such as modernising ageing IT estates, securing their data foundations, and building cultures that foster AI-driven innovation.

Consider the average enterprise IT environment: According to Kyndryl Bridge data, nearly 44% of servers, storage, and networks across businesses are approaching end-of-life, creating fragile foundations for AI transformation. Ideally, companies would rebuild from the ground up, but the reality is more complex - most need to modernise their technology ecosystems while remaining fully operational, like fixing a car engine while still in the fast lane on the motorway.

Navigating this journey requires not only technological upgrades but also organisational and cultural shifts. CEOs and technology leaders must align AI strategies with business goals, break down operational silos, and invest in upskilling the workforce to embrace new ways of working.

As Europe competes in the AI race, the opportunity is clear: those who act decisively today - investing not just in technology but in people, culture, and resilience - will lead the future.

AI’s real power lies not just in the algorithms, but in the transformations it enables across every corner of business and society. At its best, AI is not just a tool for efficiency, but a catalyst for reinvention - one that Belgium, Luxembourg, and Europe are now uniquely poised to embrace.

Link to the report: https://www.kyndryl.com/content/dam/kyndrylprogram/doc/en/2025/ai-readiness-report.pdf