Luxembourg aims to lead in AI by 2030, with 30 Chamber of Commerce recommendations backing a national strategy focused on infrastructure, regulation, and digital strengths.
Economic Potential
Momentum is growing among nations wanting to leverage generative AI and when you consider the potential economic gains, it is easy to see why. So, how can Luxembourg take full advantage of this current momentum? According to the Implement Consulting Group, a Nordic consulting group, generative AI can increase productivity and boost Luxembourg’s competitiveness.
”To capture the next wave of AI benefits across society, Luxembourg needs to promote innovation, invest in skills and ensure clear rules”, says its 2024 study commissioned by Google.
The study found that generative AI could boost Luxembourg’s annual GDP by €6-8 billion, amounting to +9% GDP in the peak year if widespread adoption is achieved.
Gains include: ”Productivity increases from people working with generative AI, freed-up time from generative AI’s automation potential and the re-employment of time for other value-creating activities”. Furthermore, ”around 90% of generative AI’s economic potential lies in service sectors, while manufacturing and other sectors can also benefit from other types of AI”, the study shows, adding that ”Luxembourg can leverage its strong position on fundamental AI adoption drivers, but needs more talent and innovation to capture its potential”.
”AI represents a strategic lever for boosting Luxembourg’s productivity and asserting its position in Europe in search of digital competitiveness.”
Six Pillars AI Strategy
On 19 May, the Luxembourg government unveiled its new national strategy on AI, with the ambition of establishing Luxembourg as a European digital hub with a strategy focused on data, AI, and quantum technologies by 2030. The 64-page report sets out the goals of promoting responsible AI applications and alignment with EU standards, data centralisation across institutions while maintaining data protection and privacy and quantum technology integration into research and to bolster cybersecurity. The strategy spans six pillars: governance and regulation, skills and talent development, infrastructure enhancement, service ecosystem, research and innovation and international collaboration.
”It is therefore essential to act now. And delaying commitment means taking the risk of finding ourselves in the position of a follower, fully dependent on the progress made elsewhere and without being able to reap the sustainable benefits”, the Luxembourg Chamber of Commerce commented.
One AI Platform, 30 Recommendations, 6 Main Orientations
To support its vision, the chamber presented ”LuxAIhub: making Luxembourg an artificial intelligence hub”, a 40-page report setting out how to ”bring together the players within an AI Platform for a coherent approach based on assertive leadership in the service of the Luxembourg economy”.
This platform would be set up for a renewable period of five years (in line with the horizon set by the national strategy on AI to 2030), and would serve as a forum for discussion between the private and public sectors. ”It should be placed under the responsibility of the Prime Minister, represented by a delegate from the Ministry of State”, the document continues. ”It will have to have consultative powers, via the drafting of opinions on draft laws and draft Grand-Ducal regulations”.
Following its suggestion for an AI Platform, the Chamber of Commerce issued 30 recommendations ”to make Luxembourg an artificial intelligence hub: the LuxAIhub”:
- It calls for the large-scale adoption of AI in finance, government, and education-supported by awareness campaigns, hackathons, and state-backed excellence programs.
- Strengthening Luxembourg’s financial ecosystem is also key. The Chamber urges measures to attract private equity and VC funds, alongside tax incentives for tech-focused investments.
- Regulatory innovation is central to the vision. Proposals include creating an AI legal hub, regulatory sandboxes, and an ecosystem of expert authorities to drive trust and innovation.
- Infrastructure and data access are seen as foundational pillars. Leveraging the Meluxina supercomputer, securing competitive electricity pricing, and targeting strategic sectors like finance, space, and cybersecurity are top priorities.
- A proposed Deep Tech Lab would turn academic research into commercial value, boost R&D through tax incentives, and reinforce public-private collaboration.
- Finally, a focused AI branding strategy around LuxAIhub would promote Luxembourg globally, attract top talent and companies, and cement AI as a national priority.
The message is clear: ”AI represents a strategic lever for boosting Luxembourg’s productivity and asserting its position in Europe in search of digital competitiveness”, concludes the Chamber of Commerce. ”Luxembourg has all the cards in hand to become a key player in Europe in this field”.
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Bert Boerman, Tech Founder & Digital Transformation Specialist
