Artificial intelligence is increasingly moving beyond single-task tools towards systems that can operate with a higher degree of autonomy. One of the most significant developments in this evolution is agentic AI, a new generation of AI systems designed to pursue goals, make decisions and carry out sequences of actions across multiple tools and data sources with limited human intervention.
This article explores what agentic AI is, why it matters for organisations and policymakers, and how well Europe is positioned to adopt it at scale. Drawing on a new report by the StepUp StartUps Initiative, it examines Europe’s strengths, the structural challenges slowing deployment, and the policy and investment measures needed to support safe, large-scale adoption.
The report shows that while Europe benefits from strong AI talent, a growing investment base and a regulatory framework focused on trust and accountability, significant gaps remain that could limit competitiveness if left unaddressed.
From isolated automation to autonomous systems
Agentic AI represents a step change in how AI systems operate. Unlike traditional models that generate outputs based on predefined inputs, agentic AI can perform sequences of actions across interconnected tools and data sources. These systems are able to break down a goal, identify the required steps, execute them autonomously and refine their behaviour through feedback.
This capability is beginning to reshape sectors where efficiency, accuracy and responsiveness are critical. Early applications can already be seen across public administration, financial services and healthcare, where complex workflows and decision-making processes stand to benefit most from autonomous systems.
Investment momentum and Europe’s AI strengths
Investment trends reflect the growing momentum behind agentic AI. Europe now allocates a higher share of venture capital to agentic AI than the United States, with France and Germany emerging as leading hubs. A broader network of innovation cities, including Amsterdam, Stockholm, Munich and Barcelona, is further strengthening Europe’s role in this space.
Public funders play an important catalytic role within this ecosystem. Organisations such as the European Innovation Council and EIT Health help attract global investors while supporting experimentation and early-stage deployment of agentic AI technologies across Europe.
Structural challenges slowing adoption
Despite these strong foundations, the report highlights three systemic barriers that continue to slow Europe’s ability to scale agentic AI.
First, new regulatory and operational risks are emerging. Multi-step, autonomous actions can blur responsibility across systems and tools, challenging existing compliance frameworks and increasing the need for continuous traceability and meaningful human oversight.
Second, fragmented data and technological dependence remain significant constraints. Only a small share of Europe’s industrial and public-sector data is currently reused, while reliance on non-European cloud providers and hardware limits technological sovereignty.
Third, adoption capacity varies widely across Member States. Differences in digital readiness and supervisory resources, combined with risk-averse implementation cultures, often lead organisations to delay agentic AI pilots due to compliance concerns, reputational risk and the lack of established reference cases.
Recommendations for scaling agentic AI in Europe
Drawing on its analysis, the report puts forward recommendations in three key areas. These include building clear and auditable control points to support safe deployment, accelerating the development of sovereign data and infrastructure foundations, and scaling adoption through flagship use cases in high-value sectors.
The report also emphasises the importance of increasing European participation in agentic AI open-source initiatives and making greater use of public procurement instruments to support adoption.
Policy context and next steps
In October, the European Commission adopted the Apply AI Strategy, aimed at accelerating AI adoption across key industries, particularly among small and medium-sized enterprises. The strategy promotes an AI-first approach, encouraging organisations to consider AI solutions when making strategic and policy decisions.
The Apply AI Strategy forms part of the wider AI Continent Action Plan, which sets Europe’s ambition to become a global leader in trustworthy AI.
The full Agentic AI report is available to download and provides a detailed overview of the findings and policy recommendations for deploying agentic AI safely and at scale across Europe.
Read the orginal article: https://www.eu-startups.com/2026/01/agentic-ai-is-europe-ready-to-scale-it-safely/
