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

Finland

€2.3bn
10-year exposure, Medium scenario
€1.6bn
One-off migration cost, Medium
€52m/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 €335 €864 €1,494
Effect on the real GDP level -€15 -€58 -€133

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €28m €139m €278m
Medium €52m €261m €523m
Broad €91m €453m €907m

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €559m
Medium €1.6bn
Broad €2.8bn

Ordinary public support

€ million, public sector

Narrow €1.4m
Medium €13m
Broad €43m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.4m
Medium €5.2m
Broad €20m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

1
Narrow – vendor equivalents affected
6
Medium – vendor equivalents affected
13
Broad – vendor equivalents affected
€27m
Narrow – annual value added at risk
€108m
Medium – annual value added at risk
€246m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €3.1m
Medium €38m
Broad €122m