EIC Advanced Innovation Challenges (AIC): Physical AI and embedded intelligence

EIC Advanced Innovation Challenges (AIC): Physical AI and embedded intelligence is sponsored by European Commission (European Innovation Council - EIC). A new 2026 instrument, the EIC Advanced Innovation Challenges (AIC), offers up to €2. 5M for breakthrough deep-tech solutions through an ARPA-style staged funding model.

Physical AI and embedded intelligence are among the first AIC focus areas.

Advanced Innovation Challenges- Pilot - European Innovation Council Advanced Innovation Challenges- Pilot What for Deep tech innovation Support high-risk, demand-driven deep tech innovation with transformative potential especially in areas where there is lack of commercial uptake.

Who can apply SMEs and research teams Start-ups, SME or research performing organisation (university, research or technology organisation, including teams, individual Principal Investigators and inventors) What you get Grants and support €300,000 lump sum (stage 1), up to €2. 5 million lump sum (stage 2), coaching & mentoring, networking What is the EIC Advanced Innovation Challenges ?

EIC Advanced Innovation Challenges aim to support high-risk, demand-driven deep tech innovation with transformative potential especially in areas where there is extensive research but lack of commercial uptake.

This pilot aims to assess whether competitive, stage-gated support can accelerate the path to market for high-risk deep tech innovations, and whether early integration of demand-side actors can enhance the relevance, validation, and ultimately the uptake of breakthrough solutions.

The pilot will provide evidence on whether these mechanisms lead to more efficient innovation cycles and broader market adoption than other instruments within Horizon Europe.

The EIC Advanced Innovation Challenges are shaped and steered by EIC Programme Managers , in collaboration with users and ecosystem actors, to ensure strong alignment between cutting-edge science, demand, and policy priorities Two-stage funding model with: Stage 1 : €300,000 lump sum for up to nine months to prepare and benchmark breakthrough solutions and explore their feasibility and viability. Stage 2 : Up to €2.

5 million lump sum for up to 2. 5 years to further develop the most promising solutions and test them in real world environments and with the involvement of users.

Access to a range of tailor-made Business Acceleration Services (BAS) for beneficiaries: Access to global partners Access to coaches, mentors, expertise and training Access to innovation ecosystem and peers Accelerating Physical AI: Embodied Intelligence for the Next Frontier of AI-Powered Robotics This Challenge aims to accelerate the development towards integration, deployment and commercialisation of breakthrough Physical AI solutions that will enhance Europe’s technological sovereignty, sustainability, and global competitiveness.

Watch the Challenge introduction here Apply for the Challenge here Translating Disruptive New Approach Methodologies (NAMs) into Practice NAMs have the potential to replace, reduce or refine animal use in the testing of medicinal products. This Challenge competition therefore looks to accelerate the adoption of NAMs in biomedicine and support companies that want to bring NAMs to the market.

Watch the Challenge introduction here Apply for the Challenge here This document presents the 2026 European Innovation Council (EIC) Work Programme funded by the European Union’s Horizon Europe Framework Programme for Research and Innovation. It sets out how the EIC will allocate its funding of for the year 2026 and has been prepared following the advice of the EIC Board.

Stage 1 - 2026 (To prepare and benchmark breakthrough solutions and explore their feasibility and viability) A single legal entity established in a Member State or an Associated Country (‘mono-beneficiary’) if you are a start-up, SME or research performing organisation (university, research or technology organisation, including teams, individual Principal Investigators and inventors).

Larger companies (i.e. which do not qualify as SMEs) are not eligible to apply as a single legal entity. Stage 2 - 2027 (To further develop the most promising solutions and test them in real world environments and with the involvement of users) Only proposals that were selected for funding under Stage 1 of the Advanced Innovation Challenges pilot will be eligible to submit a proposal to the Stage 2 call.

A single legal entity established in a Member State or an Associated Country (‘mono-beneficiary’) if you are a start-up, SME or research performing organisation (university, research or technology organisation, including teams, individual Principal Investigators and inventors in such institutions who intend to form a spin-off company).

Larger companies (i.e. which do not qualify as SMEs) are not eligible to apply as a single legal entity; or A small consortium of two independent legal entities from two different Member States or Associated Countries, or A consortium of maximum three eligible independent legal entities (‘multi-beneficiary’) following standard rules i.e. must include at least one legal entity established in a Member State and at least two other independent legal entities, each established in different Member States or Associated Countries).

The deadline for submitting your proposal was 26 February 2026 at 17h00 Brussels local time . Proposals had to be submitted via the Funding & Tenders Portal before the given deadline. The indicative deadline for submitting your proposal is 18 June 2027 at 17h00 Brussels local time Only the proposals that successfully passed Stage 1 are eligible for Stage 2.

You must submit your proposal via the Funding & Tenders Portal before the given deadline. The network of National Contact Points (NCPs) is the main structure to provide guidance, practical information and assistance on all aspects of participation in Horizon Europe.

Find your National Contact Point Find answers to questions frequently asked by applicants about types of funding, eligibility, submission of proposals and much more Browse the frequently asked questions All EIC supported projects and companies get access to coaching, mentoring, partnering and other EIC Business Acceleration Services (BAS).

EIC Impact Report 2026: Europe strengthens its position as a global deep tech scaling hub The European Innovation Council (EIC) today published its Impact Report 2026 High interest in first EIC Advanced Innovation Challenges call The first European Innovation Council (EIC) Advanced Innovation Challenges call received 709 proposals across the two challenge topics. In total, applicants requested...

EIC Board welcomes the 2026 work programme The Board endorses the 2026 work programme as the pivotal milestone in advancing Europe's deep-tech and scale-up ambitions.