South Summit 2026: Three trends shaping the future of European tech
At the 2026 South Summit in Madrid, the tech world moved past AI hype, with the event highlighting AI's fundamental role in company building. Founders, investors and operators from various European companies discussed AI's impact on various sectors, including defence and dual-use technologies. AI has become a vital tool, with venture capital increasingly flowing into AI-related projects.
According to the OECD, 61% of global venture capital went into AI-related projects in 2025, up from 30% in 2022. AI venture buildathons showcased the accessibility of AI tools, enabling prototypes to be built in hours. South Summit identified three areas where AI can build defensible companies: proprietary data, domain expertise, and integration into workflows.
However, human judgement remains crucial to determine what to build and for whom. Europe is navigating regulation while exploring opportunities within dual-use technology and AI. Policymakers and founders must leverage Europe's strengths in solving complex, real-world problems, focusing on defense, cybersecurity, applied AI, space technology, and satellites.
Funding has evolved as AI reduces execution costs, shifting investment to growth-stage startups with proven business models.
Written by urgent.news from Sifted's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
