Advancing Europe’s Deep-Tech Future

A New Frontier for European Deep-Tech

The European Innovation Council (EIC) has introduced a bold new funding instrument under the Horizon Europe Work Programme 2026: The Advanced Innovation Challenges (AIC). This pilot programme takes an ARPA-style approach to accelerate breakthrough technologies that can transform industries, strengthen Europe’s competitiveness, and address critical societal needs.

Announced during the AIC Info Day in November 2025, the initiative reflects a strong EU ambition to close the long-standing gap between world-class research and successful commercialisation. Many European innovators struggle in the “missing middle”: their technologies are too advanced for traditional research funding, yet not mature enough for investors. The AIC pilot directly targets this bottleneck by offering a structured, stage-gated pathway from TRL 4 prototype to real-world deployment.

A Challenge-Driven Approach to Strategic European Priorities

For this first pilot, the EIC has chosen two challenge areas where Europe demonstrates strong scientific excellence but faces obstacles in market uptake: 

1. Accelerating Physical AI: Embodied Intelligence for the Next Frontier of AI-Powered Robotics

This challenge focuses on embodied intelligence — robotic systems capable of perceiving, reasoning, learning and acting autonomously in dynamic, unpredictable environments. Applications may include disaster-response robotics, autonomous labs for scientific discovery, and next-generation robot assistants.

Projects should demonstrate genuine technological breakthroughs in areas such as multimodal sensing, adaptive learning, collective decision-making, human–AI collaboration or advanced physical integration.

To apply, teams must already have a TRL 4 prototype, an identified use case, a Letter of Intent from an end-user, and access to appropriate testing infrastructure.

2. Translating Disruptive New Approach Methodologies (NAMs) into Practice

The second challenge supports advanced human-relevant testing technologies designed to replace, reduce or refine animal use in biomedical research and regulatory assessments. This aligns with accelerating EU momentum toward non-animal approaches, reflected in updated EMA guidance, EFSA roadmaps, and the EU’s forthcoming chemical safety testing reforms.

NAMs in scope include organ-on-chip platforms, human organoids, microphysiological systems, digital twins, in silico toxicology models, and other human-based alternatives. 

Strong proposals will demonstrate improved predictive reliability, regulatory relevance, feasibility for validation and a clear path towards industrial or clinical uptake.

Across both challenges, the EIC places strong emphasis on demand-side integration — meaning that end-users, regulators, and integrators must be involved early and throughout the project life cycle. 

Two Stages of Funding to De-Risk Innovation

AIC introduces a staged funding system that helps de-risk innovation while providing flexibility and support tailored to the maturity of the technology.

Stage 1: Solution Validation & Benchmarking

Stage 1 awards a €300,000 lump sum for up to nine months. This enables innovators to validate the feasibility of their technology, benchmark performance against the state-of-the-art and produce high-quality evidence for potential customers, regulators or investors. Applicants must be a single entity — a start-up, SME or research organisation established in an EU Member State or Associated Country — and must start the project no later than 1 October 2026.

During this phase, teams refine their TRL 4 prototype, conduct initial feasibility studies, assess ethical and data governance factors, perform early market analysis and prepare a regulatory or industrial uptake roadmap. Stage 1 culminates in a full Stage 2 proposal supported by tangible technical and user evidence.

Stage 2: Development & User Testing

Stage 2 offers up to €2.5 million for up to 2.5 years to further develop the most promising solutions originating from Stage 1. Here, innovators scale their prototypes to TRL 6–7, validate them in real-world environments and address requirements for certification, regulatory approval or industrial adoption. Unlike Stage 1, small consortia of two to three partners are permitted, enabling teams to bring in industry, clinical or regulatory expertise as needed.

The evaluation for Stage 2 includes a live pitch before a jury chaired by the EIC Programme Manager, who follows each portfolio closely. This ensures that only the most compelling projects — with strong feasibility evidence and clear potential for market uptake — advance to full development.

Why the AIC Pilot Matters 

The AIC pilot is not simply another funding scheme. It represents a shift toward more agile, mission-driven support models inspired by DARPA-style programmes, enabling Europe to respond faster to emerging technological opportunities.

Several features distinguish the AIC approach:

Deep integration of demand-side actors such as end-users, industry, regulators and notified bodies

A portfolio-based selection approach, where EIC Programme Managers curate a coherent set of high-potential projects

A strong focus on disruptive technologies capable of creating entire new markets or radically transforming existing ones

100% grant funding, making the scheme particularly attractive for early deep-tech teams with high technology risk

Close guidance from Programme Managers, who provide strategic advice, ensure cross-project learning and support alignment with EU priorities.

These elements create a highly supportive environment that accelerates development timelines, improves the quality of evidence generated and increases the likelihood of market adoption.

Who Should Consider Applying?

The AIC pilot is ideal for organisations that already have a TRL 4 prototype and are preparing to take a decisive step toward real-world deployment.

Suitable applicants are those who have begun engaging with potential end-users, regulatory bodies or integrators and can access relevant testing environments. This is particularly relevant for start-ups and research groups working in robotics, MedTech, biotech, computational modelling, human tissue systems or advanced AI-driven analysis models.

If your innovation has the potential to offer significant performance improvements, reshape markets or enable new industry capabilities, the AIC could be an excellent fit.

How Nordic Innovators Can Support Your Application

At Nordic Innovators, we have extensive experience guiding deep-tech innovators through EIC funding programmes, including EIC Pathfinder, EIC Transition, EIC Accelerator and EIC STEP.

With the introduction of the AIC, we now support clients in navigating this new challenge-driven mechanism through:

* Eligibility assessment and challenge alignment
* Strategic positioning and storytelling
* Regulatory and end-user engagement strategy
* Proposal writing for the concise Stage 1 format
* Benchmarking and feasibility planning
* Roadmap development for Stage 2
* Pitch coaching ahead of jury evaluations.

Whether you aim to transform biomedical validation with human-relevant testing or build the next generation of autonomous robotic systems, our team helps you translate your vision into a competitive AIC application.

My Final Thoughts of AIC

The EIC Advanced Innovation Challenges 2026 marks a significant evolution in EU deep-tech funding.

With its mission-driven approach, strong demand-side engagement, and staged investment model, AIC provides a powerful pathway for breakthrough technologies to move from promising prototypes to real-world impact.

If your organisation works in Physical AI or NAMs, now is the right time to explore whether the AIC pilot can accelerate your journey from laboratory innovation to market-ready solutions.

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