The hurdles faced by AI development in Europe extend beyond new businesses, with insights from Italy, France, and Lithuania providing a comprehensive view
In the realm of generative AI, Europe, particularly Italy, is looking to make its mark. A question hangs in the air: is there entrepreneurial fervor in Europe regarding generative AI?
Italian AI startup, Exein, with a recent Series C funding round of 70 million euros, is certainly making strides. Founded in 1999 as an Italian translation company, Exein has shifted its focus to cybersecurity solutions for connected devices and more recently, AI. The company has developed a new AI model named "Lara" that can explain its translations and improve itself. Exein also plans to raise another 100 million euros to develop the computational part of its AI models.
However, Europe is currently lagging behind in generative AI, particularly in comparison to online search technologies and social media. This is a concern that the European Commission aims to address with a plan to invest 200 billion euros in AI, including a new European fund of 20 billion for gigafactories.
But it's not just about investing in base models for technological sovereignty. Exein's founder, Gianni Cuozzo, suggests that Italy should focus on AI applications in the mechatronics field, where LLMs are not yet well utilized. This strategic approach is seen as a more competitive strategy in the current AI landscape.
Italian AI startups are adopting strategies centered on leveraging specialized innovation, ethical AI development, collaboration with European AI initiatives, and sustainability-focused partnerships, particularly with African markets.
One such example is the DVPS project, led by Exein and funded by the European Union with 29 million euros under Horizon Europe. The project aims to create a new generation of AI models that can learn multimodally. The AI Hub for Sustainable Development based in Rome is another initiative that collaborates with the UNDP and African countries, supporting startups and founders from Africa and Italy, focusing on sectors like health, education, agriculture, and mining.
Italy's strategic strength lies in combining AI with its renowned design and manufacturing sectors, such as furniture and fashion. AI tools are widely used to reduce development times, minimize errors, and boost creativity, providing a distinctive competitive advantage on the global stage.
Despite using technologies developed by its citizens, Europe has few technological protagonists in generative AI. However, the new digital revolution, primarily driven by generative artificial intelligence technologies, originated from the American Silicon Valley, with key players like OpenAI and Google.
China has caught up with DeepSeek in generative AI, but it is not yet at par with the leaders. Italy, with its unique approach to AI, could potentially bridge this gap and contribute to European AI development.
In conclusion, Italian AI startups are carving out a niche for themselves in the global AI landscape by embracing specialization and ethical compliance, leveraging Italy’s industrial design excellence, participating in international sustainable AI initiatives, and utilizing EU support structures. As the European Commission invests heavily in AI, it remains to be seen how Italian startups will continue to innovate and compete on the global stage.
The Italian AI startup Exein, with its recent Series C funding round and AI model called "Lara," is demonstrating strides in energy-intensive AI applications, such as cybersecurity solutions and AI model development. Moreover, European AI initiatives, like the DVPS project and the AI Hub for Sustainable Development, are harnessing artificial-intelligence technology to create innovative solutions and foster collaboration between European and African countries in sectors like health, education, agriculture, and mining.
