The Netherlands cannot and need not compete with the United States and China in the race for ever larger and more expensive AI language models, nor should it want to copy that approach. This is according to a new deep-dive study by Invest-NL in cooperation with ROM-Netherlands. The study shows that the Netherlands is particularly strong in those parts of the AI chain where quality data, energy-efficient technology, reliable infrastructure and specialist knowledge are decisive. To cash in on this position, however, investments and a strong AI industry policy are necessary.
The study, written by AI expert Stefan Leijnen, analyzes how global AI development is shifting to new energy-efficient hardware and new data streams and applications that are strongly anchored in physical processes and industrial data. According to the report, the Netherlands can become internationally distinctive in these areas if it makes strategic choices now. "Next-generation AI is not about even bigger language models, but models that learn through sensors, robotics and interaction with the real world. Those models will have to be energy-efficient and privacy-friendly," says author Stefan Leijnen. "That's where the opportunities for the Netherlands and Europe lie."
Dutch AI opportunities in sectors where data and physical processes converge
The deepdive shows that the Netherlands is strongly positioned where physical processes, high-quality data and high adoption potential come together: agricultural technology, logistics, high-tech manufacturing, energy and healthcare. In these sectors, hard-to-copy AI applications are emerging that run on protected data and are integrated into the physical world. The report identifies opportunities for the Netherlands:
- Sectors with a physical component, unique data and high adoption potential, such as science, high-tech manufacturing, healthcare, renewable energy and agricultural technology.
- New data streams and data markets, where the Netherlands can leverage its leading position in responsible AI.
- Energy-efficient AI hardware such as photonics and neuromorphic computing, areas where European and certainly Dutch companies and knowledge institutions are already globally recognized.
Less fragmentation, more scale, targeted investments
The study argues for an AI industry policy that removes barriers and makes targeted investments where market forces alone fail. This policy should focus on increasing access to capital for AI startups and scale-ups, with tickets of €20-30 million and more than €100 million for hardware and foundation models, combined with intensified European cooperation to reduce fragmentation in investment, data and infrastructure.
In addition, the government must harness public demand to accelerate adoption, especially in domains such as healthcare, energy, research and security, and build public institutions that bring vital data and digital infrastructure under democratic governance. Finally, the study advocates research into a future-proof AI Gigafactory for edge AI, energy-efficient hardware and privacy-aware local computing power, as a strategic foundation for autonomous AI capability in the Netherlands and Europe.
Targeted investments support Dutch AI course
Invest-NL and ROM-Nederland stress that strategic investments are crucial right now to strengthen this position. "If the Netherlands chooses its own AI course, we can win precisely in the domains in which we are strong. Our investment policy will have to focus on bigger tickets for AI startups and hardware builders, invest where the market falls short, and connect parties around a long-term strategic agenda. This deep dive shows exactly where those opportunities lie."
The report illustrates that a Dutch AI strategy is not only economically sensible, but essential for future security, autonomy and protecting European values. The AI-deepdive follows previous Invest-NL publications on quantum, lab-on-a-chip and semicon - all key technologies within the National Technology Strategy. Dedeepdive series aims to show how and where targeted investments create strategic advantage for the Netherlands.
