SME Package AI: 70% funding, spent on the right project
Luxembourg covers 70% of eligible costs on SME AI projects between EUR 3,000 and EUR 25,000. The subsidy is the easy part. Choosing a project worth funding is where most applications go wrong.
I help Luxembourg SMEs start from readiness: pick one workflow, one owner, one metric — then shape the application around a project the business will still be using a year later.
The programme
What is the SME Package AI programme?
The SME Package — AI is a Luxembourg state aid scheme in which the Ministry of the Economy covers 70% of eligible costs for a defined AI project worth between EUR 3,000 and EUR 25,000 excluding VAT. It exists so smaller businesses can run a real first AI project without carrying the full cost of finding out what works.
Official conditions and the application route are published on Guichet.lu. For companies preparing larger AI programmes, Luxinnovation runs complementary diagnostics and coaching.
Luxembourg SME
A valid business permit and a registered office in Luxembourg are the entry conditions for the SME Packages scheme.
Project between EUR 3,000 and EUR 25,000
The completed project must have a value between EUR 3,000 and EUR 25,000 excluding VAT to qualify for the package.
A concrete AI project
The aid funds a defined AI project, not open-ended exploration. A scoped workflow with a measurable outcome is what gets approved and what proves value.
The trap
Where funded AI projects go wrong
Funded AI projects fail for the same reason unfunded ones do: the project was chosen to fit the subsidy instead of the business. A 70% discount on the wrong project is still the wrong project — and it costs a year of internal credibility on top of the remaining 30%.
Funding chosen before the use case
The subsidy becomes the goal, a vendor supplies a generic project to fit it, and the business absorbs a tool nobody asked for.
No success metric in the application
A project without a pilot scorecard cannot prove value after the grant is spent, so it never expands beyond the funded phase.
No owner and no guardrails
Funded tools without a named owner and clear data boundaries stall in review or quietly fall out of use within two quarters.
Readiness first, application second
How to turn the subsidy into a project that survives
The sequence matters. Readiness work done before the application produces a stronger application and a pilot the business keeps after the funded phase ends.
Check readiness first
Assess workflows, data, and ownership before touching the application. Funding pays for the project; readiness decides whether the project is worth funding.
Scope a fundable project
Define one workflow, one owner, one metric, and a budget inside the EUR 3,000-25,000 window so the project fits both the programme and the business.
Prepare the application
Assemble the project description, cost breakdown, and expected outcomes in the shape the Ministry of the Economy expects to review.
Run the pilot against a scorecard
Deliver the funded project as a measured pilot, so the 70% subsidy produces evidence you can scale, not just a completed invoice.
The wider funding map
Which Luxembourg programme fits which problem?
The AI package is one of several routes. If your real constraint is digital presence, management systems, or security rather than AI, a neighbouring programme may fit better — and the readiness logic is identical: define the problem first, then pick the funding that matches it.
SME Packages - Digital
Digital presence and management tools
Same mechanics as the AI package: EUR 3,000-25,000 project, 70% of eligible costs covered. It funds digital marketing (building or improving your website, social media campaigns), management systems such as an ERP or industry software, and electronic invoicing. Entry runs through a pre-analysis with the House of Entrepreneurship or eHandwierk.
SME Packages - Digital on Guichet.luFit 4 Digital
Fully funded digital maturity assessment
A Luxinnovation-led programme with the Ministry of the Economy. A consultant assesses your digital maturity across IT infrastructure, cybersecurity, and software, and delivers a costed action plan. The assessment is set at a fixed EUR 5,000, covered in full by a grant. Implementation can then be the subject of a new aid application.
Fit 4 Digital on Guichet.luFit 4 AI
For larger AI ambitions
The Fit 4 family also includes an AI programme for companies preparing bigger AI moves than the SME Package window covers. If your readiness work points to a project beyond EUR 25,000, this is the routing conversation to have with Luxinnovation.
Fit 4 AI on Guichet.luSME Packages - Cybersecurity
Guardrails funded too
The same package structure applies to cybersecurity projects. Relevant when your AI readiness work surfaces data-protection gaps that should be closed before a pilot touches customer data.
SME Packages — Cybersecurity on Guichet.luProgramme terms change. Always confirm current conditions on Guichet.lu before committing budget. In a funding-fit session I help you match the problem to the right programme before any application is written.
Where the funded project lands
The services behind a funded first project
AI Readiness Audit
Validate workflows, data, and governance before you commit to a funded project.
AI Implementation
Design, build, and run the funded pilot with clear success criteria.
AI Automation
Put the subsidy behind a repetitive workflow that visibly drains hours today.
AI Consulting
Map the landscape first if the right project is not yet obvious.
Questions leaders ask
Before you apply
What is the SME Package AI programme?
It is a Luxembourg state aid scheme for small and medium-sized enterprises. The Ministry of the Economy covers 70% of eligible costs for a defined AI project with a value between EUR 3,000 and EUR 25,000 excluding VAT. Details and conditions are published on Guichet.lu.
How much funding can an SME receive?
The aid covers 70% of eligible project costs. On the maximum project value of EUR 25,000 excluding VAT, that is up to EUR 17,500. On a EUR 10,000 project, the net cost to the business is EUR 3,000.
Who is eligible?
SMEs with a valid business permit and a registered office in Luxembourg can apply. The project itself must fall inside the EUR 3,000-25,000 window. Always confirm the current conditions on Guichet.lu before applying, as programme terms can change.
Should we apply before or after defining the use case?
After. The strongest applications describe one specific workflow, a named owner, and a measurable outcome. Starting from readiness produces a better application and, more importantly, a project the business actually keeps using after the funded phase ends.
What about larger programmes like Fit 4 AI?
Luxinnovation runs complementary support for companies preparing bigger AI moves, including structured diagnostics and coaching. If your ambition is beyond the SME Package window, the readiness work is the same and the right programme becomes a routing decision, not a restart.
Make the subsidy your second decision, not your first.
A 30-minute session is enough to tell whether you have a fundable project, what it should cost, and whether the SME Package AI window fits it. You leave with a clear next step either way.
30 minutes • Confidential • Luxembourg-based