Transforming the promises of artificial intelligence into concrete levers for creating value. This is the challenge that many organisations are seeking to meet today. The expectations associated with this technology are high. But integrating it into the heart of an organisation, as many are now realising, is not necessarily easy. Between regulatory requirements and the need for robust data governance, not to mention change management issues, there is a lot to do.
AI, a major new contributor to Luxembourg’s GDP
“This technology represents a major economic opportunity for the country, with an estimated potential annual contribution to GDP of 6 to 8 billion euros over the next decade”, says Philippe Mayer, deputy managing director of Luxinnovation. To account for this potential, in 2024 Luxembourg’s GDP was €86.1bn.
“AI can transform key sectors such as finance, space, cybersecurity and the green economy, which are strategic pillars of the Luxembourg economy. But it obviously affects all other activities”, continues the head of the National Innovation Agency. “It enables processes to be optimised, new business models to be created and the competitiveness of local businesses to be strengthened. What’s more, AI can automate up to 72% of tasks, increasing productivity while creating opportunities for jobs specialising in development and data science.”
Democratising access to AI for all businesses
For Luxembourg, technology is also a lever for diversification, a means of attracting new activities to the Grand Duchy. In this respect, the country is seeking to position itself by developing an ecosystem that meets the needs of companies involved in artificial intelligence. “Luxembourg aims to become the ideal place for companies that want to develop and rapidly test AI applications that are ethical, transparent and human-centred. In short, AI that is not a black box, AI that you can trust,” says Philippe Mayer. “The aim is to democratise access to AI for all companies, whatever their level of maturity, while guaranteeing compliance with European standards such as the GDPR and the AI Act.”
Luxembourg, European AI hub for regulated industries
To this end, the country is committed to strengthening its supercomputing capabilities with Meluxina-AI, a sovereign infrastructure optimised for AI that will be operational during the second half of 2026, and to developing cross-border partnerships to support innovation through privileged access to resources and data on a European scale. “Luxembourg stands out for its advanced digital infrastructure, its commitment to data sovereignty and its ability to attract international talent,” continues Luxinnovation’s deputy managing director. “These efforts strengthen Luxembourg's position as a European AI hub, especially for regulated industries.”
Opportunities to explore, challenges to overcome
At the level of a key sector such as finance, Luxembourg can make a difference by supporting the development of AI solutions for risk management, regulatory compliance and fraud detection. In the space sector, there are applications based on satellite data for environmental monitoring and logistics. In cybersecurity, another sector on which Luxembourg is focusing, artificial intelligence should contribute to the development of autonomous tools for detecting and responding to threats. And if we're talking about the green economy and sustainable transition, artificial intelligence is an ally when it comes to optimising resources and promoting sustainable practices.
In pursuit of these ambitions, Luxembourg faces a number of challenges. “For AI to become a lever for value creation, it is essential to invest in robust infrastructures, such as Meluxina-AI, but also to train a skilled workforce capable of managing and developing AI solutions,” explains Philippe Mayer. “On the other hand, it's about encouraging the adoption of AI by SMEs, through accessible tools and financial incentives. Guaranteeing the transparency, ethics and compliance of AI solutions is also a major challenge.”
Accelerating the adoption of AI, whatever the sector
In this context, the Luxembourg AI Factory, for which Luxinnovation is the gateway, is a flagship initiative that acts as a one-stop shop for the adoption of AI. It is aimed at start-ups, SMEs, large companies, public institutions and researchers. Its mission is to accelerate the adoption of AI in businesses across the country, whatever their sector. The aim is to show that AI can bring value to everyone. “It could be the craftsman who wants to automate some of his administrative management to focus on his know-how, or a logistics company looking to optimise its rounds to reduce its costs and carbon footprint, a service company that wants to improve its customers' experience with an intelligent virtual assistant, or a start-up developing an innovative product based on AI,” Philippe Mayer details. “The Luxembourg AI Factory intends to be the starting partner for any company that wants to exploit the full potential of AI.”
The varied services offered by the Luxembourg AI Factory range from assessing AI maturity and defining roadmaps to accelerating AI projects via sandboxes and sector hubs, as well as access to supercomputing infrastructures such as Meluxina-AI, training and skills-building programmes, and support for regulatory compliance and responsible innovation.
Training, a key element in the transformation of businesses
Training, in particular, will play a crucial role in supporting the adoption of AI and properly tackling the ongoing transition. With AI, skills requirements are changing dramatically. “We see two main trends. On the one hand, we will need more specialists – engineers, data scientists, etc. – capable of developing new applications and managing them", says Philippe Mayer. “On the other hand, it is essential to rely on profiles that understand the potential of AI in order to exploit it in the context of their business.”
Photo and editing: Paperjam
This article was originally published by Paperjam.
