France’s AI Investment Plan
The €109 billion investment comprises significant contributions from both public and private sectors such as, but not limited to:
- Private sector contributions:
- United Arab Emirates (UAE): €50 billion allocated for data center campuses, including a 1-gigawatt data center
- Brookfield (Canada): €20 billion directed toward AI infrastructure development
- Investment funds from the United States and Canada
- French companies such as Iliad group, Thales, and Orange
- Public sector initiatives:
- Bpifrance: €10 billion to be invested directly or indirectly in AI companies (start-ups, data center and component manufacturers, etc.) and specialized funds through 2029
- Current AI Fund: A new nonprofit fund with the goal of raising €2.5 billion for public interest AI projects
- EU AI Champions Initiative: Led by General Catalyst, this initiative plans to inject €150 billion into European AI, aiming to establish Europe as a global AI leader
Key Points From President Macron’s Declaration:
1. Investment in AI education: France aims to foster an educational culture related to the development and use of AI while aiming to attract and retain AI talent.
2. Investment in AI research and development: This includes funding for academic research, data centers, start-ups, and public-private partnerships.
3. Regulatory framework: Macron emphasized the need for a robust regulatory framework to govern AI technologies across continents to avoid legal contradictions between nations while AI is, by essence, internationally spread while AI is shared across the globe. In this regard, France will start discussions with the EU to ensure transparency, security, protection, durability, and accountability and will probably engage in different forums (e.g., PMIA , OECD, UNESCO, UN, G7, and G20). However, President Macron excluded that AI technologies would be banned in France regarding of their nationality but plans to create a minimum set of rules that will act as a safety net. Knowing that some of the raised concerns (e.g., manipulative or deceptive techniques via AI, with the objective, or the effect of materially distorting the behaviour of a person by appreciably impairing their ability to make an informed decision ) were already covered by the EU’s AI Act — which entered into force on 1 August 2024 — or by the GDPR, he adamantly stated France should innovate before putting regulations in place.
4. Emphasis on ethical and clean-energy AI: President Macron highlighted the importance of developing AI technologies that respect ethical standards and human rights. He stressed that AI should be used to enhance human capabilities rather than replace them. He also asserted that France is the country that should lead in the development of clean-energy AI because of its position as a clean-energy exporter and funder of energy-efficient data research.
Implementation Problems and Gaps
Despite this new investment plan and despite already being the fifth global actor and first within Europe, France will still need to comply with the AI Act, which could raise challenges:
1. Compliance costs: The AI Act imposes significant compliance costs on AI providers and users, particularly for high-risk AI systems. This includes the need for human oversight, monitoring, and reporting of serious incidents, which can be operationally burdensome.
2. Regulatory complexity: Even though AI providers, deployers, importers and distributors could choose France following President Macron’s declarations about not implementing rigorous AI regulations, the AI Act’s requirements are complex and may require further clarification through implementing and delegated acts and guidelines. This complexity could hinder timely compliance, which could postpone innovations, especially for smaller organizations.
3. National security exemptions: The AI Act includes broad exemptions for national security, which could undermine France’s effectiveness in protecting fundamental rights and rule-of-law standards.
Conclusion
President Macron’s declaration on 9 February 2025 reaffirms France’s commitment to ethical AI development and investment in AI innovation. While the EU AI Act provides a comprehensive regulatory framework, implementation challenges and gaps remain. France’s proactive approach, combined with its pioneering investments, positions it as a leader in the global AI landscape. However, addressing implementation problems and ensuring robust general awareness and compliance will be crucial for the success of AI regulations in France and across the EU.
How can Goodwin help?
With experts in AI regulations, Goodwin can help you navigate the complexity of compliance with the AI Act:
1. Conducting a risk analysis of your AI project
2. Conducting a review of your key procedures and contracts to ensure AI Act compliance
3. Drafting and negotiating addenda to your contracts that satisfy the requirements of the AI Act
4. Helping you prepare and implement internal processes and procedures and draft or amend policies and manuals for AI Act compliance
5. Helping you prepare and implement transparency communications towards customers and users in order for them to understand when and how your entity is using AI, how it could affect them, and how you proactively ensure compliance with AI regulations.
If you have any other questions related to AI, please visit Goodwin’s dedicated platform or contact our experts.
This informational piece, which may be considered advertising under the ethical rules of certain jurisdictions, is provided on the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin or its lawyers. Prior results do not guarantee similar outcomes.
