In our main article, How Switzerland and Europe Could Become Global Leaders in AI Applications, we argued that the future of AI leadership will not be decided by who builds the largest models, but by who deploys AI fastest and most effectively in the real economy.
This is where the uncomfortable reality starts.
The EU has at least begun to acknowledge that it is falling behind in major high-tech waves. Switzerland, however, still tends to lean on the familiar “innovation world champion” narrative—despite the fact that much of its patent strength comes from a single sector: pharma.
In many of the defining technology waves of the last three decades, both Europe and Switzerland have steadily lost ground.
We discuss these issues openly at Silicon Valley meets Switzerland and in the High-Tech Connect blog, because avoiding the conversation will not change the outcome.
If Switzerland and Europe want to become leaders in AI applications, the first and most practical step is not a new strategy paper or a bigger compute cluster.
It is procurement reform.
Public and enterprise procurement determines:
- which technologies get deployed,
- which companies scale,
- and how fast AI moves from pilot to production.
If procurement stays slow, risk-averse, and process-driven, Europe will continue to produce pilots that never scale.
If it becomes faster, outcome-driven, and deployment-focused, Switzerland and Europe could become global leaders in real-world AI adoption.
This post explains how that can be done in practice.
Procurement Reform: How Switzerland and Europe Can Scale AI Deployments Fast
For decades, public procurement in Europe has been optimized for low risk and price competition.
That logic works for roads, office furniture, and electricity contracts.
It does not work for AI.
AI systems are:
- Evolving quickly
- Difficult to specify in advance
- Highly dependent on real data
- Measured by outcomes, not features
If procurement remains slow, complex, and risk-averse, Europe will keep producing pilot projects that never scale.
To become a global leader in AI applications, procurement must shift from process control to deployment speed and measurable results.
The Core Problem Today
Typical AI procurement in Europe looks like this:
- 6–12 months to define a tender
- Complex documentation requirements
- Selection based on price and compliance
- 6–12 month pilot
- No clear path to scale
Result:
- Startups cannot survive the process
- Enterprises hesitate to invest
- Most pilots die after the proof of concept
Europe does not have a technology problem.
It has a procurement speed problem.
What Procurement Must Look Like Instead
The new model should follow three principles:
1) Pre-approved vendor pools
Governments and large enterprises should create AI vendor frameworks.
Vendors pass:
- Security checks
- Data protection requirements
- Basic compliance standards
After that:
- They can be selected in weeks, not months.
Example:
A canton creates a “Trusted AI Supplier List” of 20 vendors.
Any department can launch a pilot with one of them within 4 weeks.
2) Outcome-based contracts
Instead of buying “AI systems,” buyers should pay for measurable improvements.
Contracts should be tied to metrics like:
- Processing time reduction
- Error rate reduction
- Cost per case
- Throughput increases
Example: Insurance claims
Instead of:
“Deliver an AI claims processing system.”
Use:
“Reduce manual claims handling time by 30% within 6 months.”
Payment linked to results.
3) Pilots with a built-in scaling path
Every AI pilot should include:
- A predefined scale decision point
- Budget for expansion
- Integration planning
Rule:
If KPIs are met, scaling happens automatically.
Example:
A hospital tests an AI scheduling system.
Contract includes:
- 3-month pilot in one department
- If waiting times drop by 20%, system rolls out to the entire hospital network.
No new tender required.
Practical 12-Month Action Plan
Month 1–3
- Create national or regional AI vendor frameworks
- Define standard AI pilot contracts
- Publish outcome-based KPI templates
Month 4–6
- Launch 10–20 fast pilots across agencies
- Cap procurement cycle at 8 weeks
Month 7–12
- Scale the top 5 pilots
- Publish public results
What This Would Change
Today:
- 100 pilots
- 5 scaled
- Minimal impact
With procurement reform:
- 30 pilots
- 20 scaled
- Real productivity gains
That alone could move Europe into a global leadership position in applied AI.
.jpg)
.jpg)
