Apply AI: Challenge-Driven AI Innovation Booster in Apply AI prioritised sectors

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Funding Presentation

🗓️ Start: 2026-11-17

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🗓️ End: 2027-03-18

Status:

🕓 Upcoming

Aerial view of a city intersection — Apply AI innovation booster funding

This research and innovation action supports challenge-driven AI innovation in the sectors prioritised under the EU’s Apply AI strategy, tackling challenges defined by industry. In-vehicle autonomous driving is one of the target sectors.

Programme

Horizon Europe — Cluster 4 Digital, Industry and Space (HORIZON-CL4-2027-04-DIGITAL-EMERGING-04)

Type

Research and Innovation Action (RIA), budget-based grant, TRL 2 to TRL 5

Funding

€42m total topic budget; 3 grants of around €14m each, one per priority sector

Focus areas

Challenge-driven AI for industry-defined challenges in the Apply AI priority sectors: healthcare, advanced manufacturing (including AI robotics) and in-vehicle autonomous driving. Each project runs a three-stage competition funding SME teams.

Who can apply

Multi-beneficiary consortia of at least three independent legal entities from three different EU Member States or Associated Countries.

How to apply

Applications open on 17 November 2026 and close on 18 March 2027 (17:00 Brussels time).

Apply through the EU Funding & Tenders Portal by 18 March 2027.

Official sources

Apply AI innovation booster — Horizon Europe funding

The Apply AI innovation booster funds challenge-driven AI solutions in priority sectors. Industry defines the challenges. Moreover, in-vehicle autonomous driving is one of the target sectors.

About the Apply AI Innovation Booster

This call is part of Horizon Europe Cluster 4 and supports the EU Apply AI strategy. It aims to speed up AI adoption where Europe needs it most. Furthermore, it links AI developers with the companies and operators that face real problems. As a result, it fits AI innovators working with transport operators and cities. Explore more smart city funding opportunities on the UTA funding page.

Who Can Apply to the Apply AI Innovation Booster

Applicants form a standard Horizon Europe consortium. It needs at least three independent legal entities from three different EU Member States or Associated Countries. In addition, strong industry involvement will make proposals more convincing.

Focus Areas and Funding

The total budget is €42m, with several projects expected. Projects are Research and Innovation Actions. Therefore, they can combine research with demonstration of AI solutions. In short, applicants should align their project closely with the expected outcomes and impact described in the call text.

Key Facts at a Glance

  • Call: Digital 2027 (HORIZON-CL4-2027-04), under the AI, Data and Robotics Partnership
  • Topic ID: HORIZON-CL4-2027-04-DIGITAL-EMERGING-04
  • Type of action: Research and Innovation Action (RIA), funded as a budget-based grant
  • Topic budget: €42 million, with around €14 million per project
  • Expected number of grants: 3, one per priority sector
  • Submission: single stage, opening 17 November 2026 and closing 18 March 2027 at 17:00 Brussels time
  • Target maturity: from TRL 2 to TRL 5

Expected Outcomes

The topic supports the Apply AI Strategy. Projects should deliver:

  • Significant technological progress in priority sectors through challenge-driven AI.
  • A more competitive and visible AI community in those sectors.
  • Wider AI adoption in healthcare, advanced manufacturing including AI robotics, and in-vehicle autonomous driving.

What Proposals Must Cover

  • Each proposal addresses one sector. The Commission plans to fund at least one project on in-vehicle autonomous driving.
  • Companies from the user industry join as core partners, define the challenges and support exploitation.
  • Each project runs a three-stage competition through financial support to third parties: an open call selects 10 teams, each team receives €300,000, and 4 finalists receive €2.25 million each.
  • Winners must be single SMEs or small SME-led teams, with up to €2.55 million per third party.
  • The consortium provides data, technical and business support, evaluation methods and infrastructure.
  • Participation is restricted to the EU, Iceland, Norway, Canada, Israel, the Republic of Korea, New Zealand, Switzerland and the UK. Entities established in China cannot take part.
  • Projects link with ADRA, the GenAI4EU hub, AI Factories, Testing and Experimentation Facilities and European Digital Innovation Hubs.

Source: the official topic page on the EU Funding & Tenders Portal, checked on 16 October 2026.

Why the Apply AI Innovation Booster Matters

For innovators, the Apply AI innovation booster opportunity can unlock funding, partners and first customers at the same time. In addition, it gives companies visibility with cities and investors across Europe. Successful projects often become references that open new markets. However, competition is strong, so a clear impact story matters. That is why UTA connects innovators with cities and research partners well before deadlines. Moreover, our network helps teams test their ideas against real urban challenges. As a result, members can build stronger proposals and turn funding into lasting growth.

Deadline and How to Apply

The call opens on 17 November 2026 and closes on 18 March 2027. Proposals are submitted through the EU Funding & Tenders Portal. For this reason, consortia should secure industry challenge owners early. Read the full details on the official call page. Urban Technology Alliance can also connect you with UTA innovators. Contact us to discuss a consortium for this call.