In recent years, the European Union (EU) has commenced several reforms in the life sciences sector. However, to drive the EU towards a more competitive environment in the health and life sciences sectors, more needs to be done. This is the assessment of Mario Draghi’s new competitiveness strategy, published in September 2024. In the second of a two-part series, Marwood examines how the recommendations from the European Commission’s (EC) new competitiveness strategy will steer the EC’s work to improve attractiveness in the fields of Artificial Intelligence (AI) and digital health. In this piece Marwood provides insights on the impact that the new recommendations may have on the EU’s AI and digital health sector over the next few years.