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EU Grants Opportunity for AI-Driven Digital Manufacturing Solutions
The European Union is providing targeted funding and structured support for small and medium-sized enterprises (SMEs) aiming to advance digital transformation in the manufacturing sector. This initiative supports applied experiments where SMEs collaborate with Digital Innovation Hubs (DIHs/EDIHs) and technical partners to design, deploy, and validate AI-based digital assistants that enhance human-machine collaboration, simplify industrial processes, and improve sustainability.
Successful applicants will benefit from non-dilutive funding of up to €125,000 per experiment and receive access to tailored technical mentoring, infrastructure, and knowledge-sharing platforms.
ICPE is preparing SMEs from its member states to participate in this opportunity by providing advisory, matchmaking, and application preparation services.
Key Details of the Programme
- Funding Available
Up to €125,000 per experiment (lump sum model) - Distribution
Up to €60,000 per partner, ≥85% reserved for SMEs - Co-Financing
40% co-financing required for for-profit SMEs;
100% covered for DIHs/EDIHs - Project Duration
12 months - Target Beneficiaries
SME-led consortia (2–3 partners) in manufacturing and digital innovation - Thematic Priorities
AI-powered digital assistants, human-AI collaboration, sustainable industrial processes - Geographical Scope
EU Member States and Horizon Europe
Associated Countries - Application Deadline
October 9, 2025, 17:00 CEST
Eligibility Criteria at a Glance
Consortia must include:
- One SME from the manufacturing sector (mandatory)
- One Digital Innovation Hub (DIH) or European DIH (EDIH) (mandatory)
- Optional third partner, typically an SME IT solutions provider, if additional technical expertise is required
General requirements:
- Applicants must be legal entities established in the EU or Horizon Europe associated countries
- SMEs defined under EU Recommendation 2003/361 (fewer than 250 employees, ≤ €50M turnover, or ≤ €43M balance sheet total)
- Individuals and current consortium partners of the managing EU project are not eligible
Programme Benefits Beyond Funding
In addition to direct financial support, participants will access:
- Technical assistance, including webinars, workshops, and one-to-one mentoring on deployment and integration
- Access to the OVOS framework and dedicated Docker Compose environments
- Guidance on setting up a white-label digital marketplace for sharing developed solutions – Networking with European industry players and research ecosystems
- Visibility through EU-funded dissemination and demonstration events
Evaluation and Award Process
Evaluation Criteria:
- Excellence:
Innovation level, use of AI-based digital assistants, alignment with manufacturing needs - Impact:
Potential benefits for SMEs, scalability, exploitation and replication strategy - Implementation:
Work plan quality, team expertise, and feasibility
Process:
- Each proposal reviewed by two independent evaluators (one internal, one external)
- Confidentiality and conflict-of-interest safeguards apply
- Minimum scoring thresholds must be met across all categories
Funding Schedule:
- 25% after approval of initial deliverables (~Month 2)
- 50% after mid-term monitoring (~Month 7)
- 25% after completion and approval of final deliverables (~Month 12)
ICPE’s Preparatory Support Services
ICPE provides tailored support to maximize competitiveness of SMEs applying under this opportunity:
Technical eligibility and compliance assessment:
ICPE supports applicants in reviewing proposal guidelines, SME criteria, TRL definitions, and EU policy priorities, ensuring the project idea fits the call requirements.
Consortium matchmaking:
Leveraging ICPE’s international network, support is provided in identifying and engaging Digital Innovation Hubs (DIHs/EDIHs), SMEs, and IT solution providers to form balanced consortia.
Proposal structuring and compliance guidance:
ICPE advises on how to frame project objectives, work packages, and expected outcomes in line with EU evaluator practices and expectations.
Expert review and policy alignment check:
ICPE offers a review of the technical and impact sections from the perspective of EU policies, regulatory environment, and best practices in proposal presentation.
Next Steps for SMEs Interested in Applying
- Initial Consultation: Contact ICPE to assess eligibility and identify potential consortium partners
- Resource Compilation: Gather company details, SME declarations, and initial project concept
- Consortium Formation: Secure collaboration with a DIH/EDIH and, if needed, an IT partner
- Application Development: Draft the 10-page proposal, supported by ICPE’s expert feedback
- Submission: Finalize and submit via the official platform before the October 9, 2025 deadline.
Note: This programme provides a unique opportunity for SMEs to validate advanced AI solutions in real industrial settings while strengthening Europe’s manufacturing ecosystem. ICPE stands ready to assist applicants throughout the entire process.
If you are interested in exploring this opportunity, please contact us at programmes@icpe.int for further information or to discuss potential next steps.