The current global race to invest in artificial intelligence (AI) may appear like a game reserved for tech giants, far beyond the reach of a small nation. For Luxembourg, however, it represents a strategic opportunity.
Luxembourg’s economy combines strong technological capabilities, deep financial and legal expertise, world-class regulated sectors, and an agile research community. While we cannot outspend American hyperscalers, we can capture value from this technological shift, converting it into growth, jobs, resilience and diversification.
The path forward is unambiguous: Luxembourg must shift fast from fundamental research to industrial deployment. Finance and public services should lead the way. Luxembourg should not resign itself to being another consumer of deep tech. We do have the blocks, yet we still need the architect and the construction site to become conceptors. The Chamber of Commerce’s 30 “LuxAIHub” recommendations seek to equip Luxembourg with the tools needed to become a true AI hub. They aim to build an operational ecosystem where science meets the market and where the state, the university and business co-invest and co-decide.
Speed is non-negotiable to fully seize the opportunities of AI. One example lies in facilitating public-private partnerships (PPPs). The latest IMD Digital Competitiveness metric for PPP support to tech development shows Luxembourg fell from twenty-third to thirty-fifth out of 69 economies in 2025. The Government’s decision to create a DeepTechLab is a cornerstone of this ambition. Its mission is to turn research into market-ready innovation, foster spin-offs and technology transfer. It should take the form of a PPP embedded in an existing structure, with governance open to businesses of all sizes. Recent research-industry partnerships show the way forward and we need more initiatives of this kind to scale ambition.
Talent is the other critical battle. Attraction matters and retention is crucial. In addition to offering promising projects, priority should be given to reinforcing belonging through competitive stock-options schemes and clear career paths, boosting profitability and growth for companies. Addressing this gap means attracting private equity (especially venture capital) front offices, easing individual investment in these asset classes and reinforcing public-private co-financing mechanisms.
“Our compass must point toward competitiveness, not dependency”
Our compass must point toward competitiveness, not dependency. The sovereign data infrastructure is a striking example. Luxembourg partners with international tech players while keeping the keys to its data. A swiftly launched DeepTechLab, embedded in a new generation of PPPs with simplified rules and bolder financing, can flip the equation. The last mile is the hardest and the one that creates value.
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