ECIPE — European Centre for International Political Economy

A study by ECIPE

Cloud and AI Development Act (CADA)

The real-world economic impact of the Cloud and AI Development Act

Impact by country

Czechia

€3.6bn
10-year exposure, Medium scenario
€2.6bn
One-off migration cost, Medium
€86m/yr
Recurring price effect, Medium

Cost per person in the working-age labour force

Per economically active person (age 20–64), 10-year horizon

Measure Narrow Medium Broad
10-year total economic exposure €250 €706 €1,291
Effect on the real GDP level -€6 -€23 -€51

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €39m €196m €393m
Medium €86m €430m €860m
Broad €160m €800m €1.6bn

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €830m
Medium €2.6bn
Broad €4.7bn

Ordinary public support

€ million, public sector

Narrow €0.6m
Medium €6.1m
Broad €19m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.7m
Medium €8.8m
Broad €35m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

2
Narrow – vendor equivalents affected
8
Medium – vendor equivalents affected
17
Broad – vendor equivalents affected
€37m
Narrow – annual value added at risk
€148m
Medium – annual value added at risk
€337m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €2.6m
Medium €32m
Broad €107m