“Europe’s competitiveness starts in our cities and regions. Local and regional authorities must have a real say in shaping Europe’s AI agenda, working with businesses to turn technological opportunities into growth. We need stronger partnerships between European institutions, local leaders and entrepreneurs to ensure that SMEs in every region can innovate and compete,” said Sari Rautio, President of the EPP Group in the European Committee of the Regions, at the first joint EPP-CoR–SME Europe Local Dialogue on artificial intelligence, competitiveness and growth, held yesterday in Helsinki.
Jörgen Warborn MEP, President of SME Europe, welcomed the first joint dialogue as a way to bring European SME policymaking closer to businesses and citizens. He called for proportionate regulation focused on risk, alongside investment, practical incentives and skills development to accelerate AI adoption.
Alberto Cirio, President of Piedmont and Chair of the CoR’s ECON Commission, set out concrete priorities for supporting SMEs and municipalities. These included technical assistance and testing opportunities for implementing the AI Act, accessible AI training, and public procurement that gives European SMEs and start-ups better access to opportunities. He also called for a European AI fund for local and regional authorities and their involvement in decisions on AI policy and infrastructure investment.
Pehr Granfalk, EPP-CoR member and rapporteur on the European Competitiveness Fund, argued that Europe’s AI success should be measured by how many SMEs actually use the technology. He called for the proposed fund to be accessible to smaller businesses without excessive bureaucracy and criticised the insufficient involvement of regions in its governance. Sharing practical experience across Europe would help SMEs and municipalities overcome technical and administrative barriers, he added.
The discussions also examined AI’s energy needs and its potential to improve efficiency. Participants highlighted the importance of affordable, low-carbon electricity and tangible benefits for communities hosting data centres. Business examples illustrated how AI can optimise energy use in buildings, while speakers called for public consultation and a fair distribution of infrastructure-related risks and benefits.
Closing the event, Mervi Katainen, Chair of the Espoo City Board, called on public authorities to create favourable conditions for entrepreneurship and investment. Drawing on Espoo’s experience, she highlighted cooperation between businesses, universities, investors and municipalities, and encouraged authorities to draw on private-sector expertise to improve public services.
The Local Dialogue, Artificial Intelligence for SMEs, Competitiveness and Growth, took place at Kuntatalo in Helsinki and brought together policymakers, business representatives and local and regional leaders to explore practical ways to support AI adoption.