EU Parliament publishes review of proposed Cloud and AI Development Act

The European Parliament's Think Tank has published a briefing document assessing the European Commission's impact assessment for the proposed Cloud and Artificial Intelligence Development Act (CADA).

CADA creates a regulatory framework to establish a single market for cloud computing services across the EU. The proposed legislation aims to stimulate investment in European cloud infrastructure and AI research and development to address current capacity shortfalls and reduce strategic reliance on non-European cloud and AI providers.

According to the briefing, the impact assessment provides a solid evaluation of the main challenges facing the European cloud computing ecosystem. The analysis identifies two principal challenges: limited computing capacity within the EU and excessive dependence on external, non-European suppliers for cloud and AI services. To address these issues, the impact assessment establishes four main objectives to evaluate relevant policy options and targeted measures, along with their projected economic and strategic impacts.

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