European Firms

• European companies are increasing their security spending to protect autonomous AI agents, treating these tools as privileged users to mitigate access risks. • The surge in demand for identity security tools is being driven by upcoming regulatory deadlines and a broader corporate understanding of cybersecurity risks. • Joe Turner, VP of Research at CONTEXT, describes this trend as a meaningful shift in how businesses approach the protection of their digital infrastructure.

• The European Union is introducing a "tech sovereignty" package designed to prioritize European firms in the AI and cloud computing sectors. • This initiative is part of a broader set of EU rules aimed at increasing domestic manufacturing to better compete with dominant tech companies from the U.S. and China. • The move matters as it signals a strategic shift toward reducing reliance on foreign technology and strengthening the bloc's internal digital infrastructure.

Major European companies warned EU leaders on March 13, 2026, that efforts to reduce dependence on US tech like Microsoft and Google cloud services could damage profitability and competitiveness. The EU's new sovereignty package targets AI and software reliance amid geopolitical risks. Firms across banking and manufacturing highlighted the high costs of shifting from entrenched US platforms. Discussions echoed concerns raised at the January Davos World Economic Forum.