In an era where technological advancements shape the future, the European Union (EU) stands at the forefront of regulating and fostering innovation. The recent approval of the Artificial Intelligence Act underscores the EU's commitment to ensuring the safe and ethical development of AI technologies.
We sat together with Catalin-Lucian Lungu, CEO at LACONSEIL where he specialises in EU funds and entrepreneurship. In this blog, discover how EU policies influence AI development and business growth, and receive some valuable business insights on top from those who approach each and every project as a unique piece of art. L’Art du Conseil; what’s in a name right?
Catalin-Lucian: “In March 2024, the European Parliament approved the Artificial Intelligence Act; a groundbreaking piece of legislation that sets the EU apart from other global regions like China, the United States, and Australia. This unique act aims to ensure safety and compliance with fundamental rights while boosting innovation across Europe, which remains immensely important in order to stimulate business activity with short and medium-sized European enterprises”.
The key highlights of this Artificial Intelligence Act are:
According to Catalin-Lucian, the financial services sector including banks and insurance companies, should be most significantly impacted by these AI advancements. The EU AI Act is set to enter into force in Q2 and Q3 of 2024, with transition periods ranging from 6 to 24 months to comply with the requirements. This period will allow organisations to adapt to the new regulations without disrupting their operations.
Especially the fact that the EU took the initiative to provide a legal framework in terms of AI, is something to be immensely proud of, says Catalin-Lucian. Catalin-Lucian: “Europe made the first step in this, which means that we define the world. We live in the future”.
The EU is the world's largest trade bloc and the biggest exporter of manufactured goods and services. For businesses operating within this vast market, the opportunities for growth are immense. Catalin-Lucian presents two critical aspects that facilitate this growth: market access and financial support.
The EU's single market provides businesses with access to over 450 million consumers. This unparalleled market size allows companies to scale their operations and tap into diverse consumer bases across member states. Whether your business is based in Belgium, Italy, or Spain, the EU market offers a fertile ground for expansion.
Catalin-Lucian: “Thanks to the EU, we’re ensured to be protected against the downsides of globalisation. When you support smaller businesses and make sure that big companies pay their fair share of tax, you end up with a stable market which is beneficial to everyone involved. Tax the rich, as they say!” [laughs]. EU-funded programmes play a crucial role in supporting business growth. These programmes are managed in three ways:
For those who are interested in direct funds, Catalin-Lucian recommends to have a look at the Funding and Tenders Portal, where you can have a look at approximately 40 EU current programmes and more than 300 forthcoming open submission calls.
One notable successful EU programme is the Erasmus for Young Entrepreneurs, which can help you to receive a training in order to make the most out of your career. Catalin-Lucian: “This programme is a cross-border exchange programme which gives new or aspiring entrepreneurs the chance to learn form experienced entrepreneurs running small businesses in other participating countries. The perfect stimulation to grow your business and thrive in the EU market. With LACONSEIL, we have already enjoyed many Erasmus projects to many different – and sunny – locations. We went to Cyprus, Greece, France, Spain, Denmark, Ireland, Lithuania... The latter three maybe not as sunny, but wonderful none the less!”. [laughs]
With more than 27 years of experience in writing, evaluating, and reviewing new EU projects, LACONSEIL has been able to work on a diverse variety in research and innovation programmes. When asked about which projects stood out to him in terms of positively impacting business productivity from the top down, Catalin-Lucian presents the EndBio project.
Catalin-Lucian: “One exemplary project is EndBio, which focuses on the end-to-end redesign of the endive industry. Developed by a consortium of SMEs from Spain, the Netherlands, and France, this project showcases how EU initiatives can drive productivity and innovation in niche markets”. Fun fact; did you know that the endive crop was discovered by chance at the end of the 19th century by a Belgian peasant who hid his chicory roots in his cellar to escape taxing on it? Catalin-Lucian: “Much to his surprise, about three weeks later the plant had produced a bud – now known as the endive which now is a staple to Belgian cuisine”.
Another promising project involves developing an artificial heart, with numerous European entities collaborating to bring this life-saving innovation to fruition. Such projects highlight the EU's commitment to supporting groundbreaking research and development.
When asked about which mistakes he sees business leaders and professionals alike make most often, Catalin-Lucian identifies two examples. Catalin-Lucian: “Running a business is hard, and even the best entrepreneurs such as Elon Musk or numerous others are sure to make a number of mistakes along the way. Because to be in business implies a long journey”. Have a look at the most commonly made mistakes, and save yourself some time, money, and heartache by avoiding them.
Entrepreneurs oftentimes believe that they have to navigate challenges alone and underestimate the value of external guidance. Catalin-Lucian: “Invest in a consultancy firm with experience in entrepreneurship; it will prevent you from making costly mistakes which will deviate to very costly budgeting”.
A deep understanding of the market is crucial for any business’ success. Catalin-Lucian: “The majority of investors go overboard when they receive new grants for their company and go straight to investing further before testing whether a certain idea is ok and will turn to studying the market afterwards – when it is too late. Another crucially costly mistake. So remember, for once and for all: study the market first, then test your idea, and only then it’s time to invest in your equipment”.
Quite the eye-opener, right? If you’re triggered to find out what EU funding and regulation could mean for your business, don’t hesitate to reach out to LACONSEIL at MeetDistrict Brussel.
