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Grant Details

Grant Analysis

Purpose & Target

This grant, 'Privacy-preserving human-AI dialogue systems – Participation in a technological challenge,' aims to fund research and development for advanced human-AI dialogue systems with a focus on privacy and defence applications. It is for consortia that will participate in a technological challenge and develop high-performance systems for defence use cases. - Target Recipient Type: Consortia of legal entities. - Target Recipient Size: Not explicitly defined by size, but requires minimum 3 independent applicants. - Designation: SECTOR-SPECIFIC (Defence, AI, Digital Technologies) - Geographic Scope: EU Member States and EDF associated countries. - Key Filtering Criteria: - Focus on privacy-preserving human-AI dialogue systems for defence. - Participation in a specific technological challenge with common testing environment. - Multilingual capabilities (all EU official languages). - Consortium required. - Grant Frequency: Appears to be part of an annual Work Programme, suggesting recurring opportunities within the EDF framework, but specific challenge may be one-time. - Program Context: Part of the European Defence Fund (EDF) under the 'Research actions in the form of a technological challenge implemented via lump sum grants' call, contributing to the Strategic Technologies for Europe Platform (STEP) objectives.

Financial Structure

  • Funding Type: Lump Sum Grants for Research Actions (LS-RA).
  • Funding Rate: 100% of eligible costs.
  • Maximum Grant Amount for this topic (EDF-2025-LS-RA-CHALLENGE-DIGIT-HAIDP-STEP): Proposals must not exceed EUR 5,000,000.
  • Total Call Budget: EUR 27,000,000 (for the overall call, which includes another topic).
  • Specific Topic Budget: EUR 20,000,000 for this topic.
  • Eligible Costs: Based on an estimated project budget that complies with basic eligibility conditions for EU actual cost grants.
  • Personnel Costs: Average personnel costs and SME owner/natural person unit costs are eligible.
  • Subcontracting Costs: Eligible if performed in eligible countries.
  • Equipment Costs: Depreciation only is eligible.
  • Indirect Costs: Either a flat-rate of 25% of eligible direct costs (excluding subcontracting, financial support to third parties, internally invoiced goods/services, PCP procurement costs) or actual costs.
  • Kick-off meeting costs: Eligible (travel for maximum 2 persons, 1 night accommodation) if meeting takes place after project start date.
  • Project Websites: Communication costs on participants' websites/social media are eligible; separate project websites are not eligible.
  • VAT: Non-deductible/non-refundable VAT is eligible (except for public bodies acting as public authority).
  • In-kind contributions: Allowed, but cost-neutral (cannot be declared as cost).
  • Ineligible Costs:
  • Financial support to third parties: Not allowed.
  • Costs related to use of assets/infrastructure/resources located outside eligible countries (even if use is authorized).
  • Costs for activities before the project starting date/proposal submission (for already started projects).
  • No-profit Rule: Grants may not generate a profit (revenue + EU grant over costs).
  • Cumulation of Funding: Strictly prohibited to cumulatively receive funding from the EU budget for the same cost items (except under 'EU Synergies actions').

Eligibility Requirements

Organizational Type and Structure
  • Legal Entities: Must be legal entities (public or private bodies).
  • Consortium Requirement: Mandatory minimum of 3 independent applicants (beneficiaries, not affiliated entities) from 3 different eligible countries.
  • Control: Not subject to control by a non-associated third country or non-associated third-country entity, unless approved guarantees are provided.
  • International Organizations: Not eligible, unless members are exclusively EU Member States or EDF associated countries and executive management is in an eligible country.
  • Entities without Legal Personality: Exceptionally eligible if representatives can undertake legal obligations and offer equivalent financial interest guarantees.
Geographic and Location Requirements
  • Establishment: Established in one of the eligible countries (EU Member States, including OCTs, and listed EEA countries (EDF associated countries)).
  • Executive Management: Executive management structure must be established in eligible countries.
  • Infrastructure Use: Only infrastructure, facilities, assets, and resources located or held in an eligible country may be used, with very limited exceptions.
  • Subcontractors: Must comply with establishment and control conditions.
Specific Qualifications and Certifications
  • Participant Register: All applicants (beneficiaries and affiliated entities) must register in the Participant Register and be validated by the Central Validation Service.
  • Ownership Control Declaration: Required for beneficiaries, affiliated entities, subcontractors involved in the action, and associated partners.
  • Ethics Review: Projects must undergo an ethics review.
  • Security Scrutiny: Projects involving classified information must undergo security scrutiny. Facility security clearance (FSC) may be required before grant signature.
Exclusion Criteria
  • EU Restrictive Measures: Entities subject to EU restrictive measures are not eligible to participate in any capacity.
  • EU Conditionality Measures: Entities subject to measures adopted on the basis of EU Regulation 2020/2092 (e.g., Hungarian public interest trusts established under Hungarian Act IX of 2021 as of December 2022) are not eligible for funding.
  • Projects Already Completed: Proposals for projects that have already been completed will be rejected.
  • Ineligible Activities: Projects concerning products/technologies whose use, development, or production is prohibited by international law, or lethal autonomous weapons without meaningful human control (with exceptions for defensive systems).
  • Third-Country Control of Results: Projects where background or results would be subject to control/restriction by a non-associated third country/entity.

Application Process

Application Procedure and Submission
  • Submission Method: Electronically via the Funding & Tenders Portal Electronic Submission System.
  • Submission Format: Forms provided inside the Submission System (not those on Topic page).
  • Required Documents (to be submitted as password-protected single .zip archive, <100 MB, AES-256 encryption):
  • Application Form Part A: Administrative info (filled online).
  • Application Form Part B: Technical description (template downloaded, completed, uploaded as PDF, max 100 pages including work package descriptions).
  • Mandatory Annexes (templates downloaded, completed, uploaded as PDFs):
    • Detailed budget table/calculator (EDF LS RA).
    • Participant information (including previous projects).
    • List of infrastructure, facilities, assets, and resources.
    • Actual indirect cost methodology declarations (if applicable).
    • Ownership control declarations (for all involved entities).
    • PRS declaration (if access to Galileo PRS info required).
  • Password Submission: Password for the .zip archive (and any other document passwords) must be emailed to [email protected] before the deadline, along with proposal ID and archive name.
  • Classified Information: Do NOT submit classified documents online. Contact [email protected] well in advance to arrange delivery.
  • Legal Mandate: At submission, confirm mandate to act for all applicants and compliance with EU funding conditions.
  • Declaration of Honour: Each beneficiary/affiliated entity must sign one before grant signature.
  • Readability: Application must be readable, accessible, and printable.
Timeline and Deadlines
  • Call Opening: 2025-02-18
  • Submission Deadline: 2025-10-16 17:00:00 CET (Brussels)
  • Evaluation Period: October 2025 - April 2026
  • Information on Evaluation Results: April 2026
  • Grant Agreement Signature: By 2026-12-31
Project Implementation Timeline
  • Project Duration: 48 months. Longer durations may be accepted if duly justified.
  • Starting Date: Normally after grant signature; exceptionally retroactive but never earlier than proposal submission date.
  • Milestones and Deliverables: Managed through Portal Grant Management System.
  • Mandatory: Progress reports (every 6-12 months) and a special report (summarizing results, IPR info, exploitation path).
Reporting and Payment Obligations
  • Reporting: Progress reports (every 6-12 months) and a special report.
  • Payment Schedule:
  • Prefinancing: Normally 55% of maximum grant amount, paid within 30 days from entry into force/starting date/financial guarantee.
  • Interim Payments: Possible for projects >18 months, linked to prefinancing reports.
  • Balance Payment: At project end, after final grant amount calculation.
  • Financial Guarantees: May be required (typically from coordinator), equal to or lower than prefinancing, issued by an approved bank/financial institution in an EU Member State.
Support Available
  • Type of Support: Funding (lump sum grants).
  • Business Coaching: Successful SME beneficiaries will be offered business coaching to accelerate growth and navigate the defence market.

Evaluation Criteria

Overall Evaluation Process
  • Proposals are checked for admissibility and eligibility first.
  • Eligible proposals are evaluated against operational capacity and award criteria, then ranked by score.
  • Overall threshold: 30 points (out of 45 maximum points). Proposals below this threshold will be rejected.
Award Criteria Scoring (Each criterion scored 0-5, half-points allowed)
  • Excellence and Potential of Disruption (Weighted x2)
  • Excellence and soundness of the proposed solution (ideas, technologies, methodology).
  • Compliance with topic objectives, scope, activities, functional requirements, and expected impact.
  • Extent to which the project's objective/outcome is novel and advantageous over existing defence products/technologies, or has disruptive potential.
  • Innovation and Technological Development (Weighted x2)
  • Demonstrated innovation potential and novel concepts/approaches (e.g., new products, services, business/organizational models).
  • Integration of existing knowledge and previous R&D, avoiding unnecessary duplication.
  • Potential for spin-off to other defence applications/products.
  • Competitiveness (Weighted x1)
  • Foreseen competitive advantage of the product/technology/solution compared to existing/planned alternatives (EU and global).
  • Analysis of EU internal and global market potential, including sales volumes.
  • Strength of the Intellectual Property (IP) strategy (e.g., patents) to support competitiveness and growth.
  • EDTIB Autonomy (Weighted x1)
  • Contribution to the autonomy of the EU's Defence Technological and Industrial Base (EDTIB) by reducing non-dependency from third countries.
  • Beneficial impact on European security of supply, including creation of new supply chains.
  • Contribution to defence capability priorities agreed by Member States (CFSP context, Capability Development Plan), addressing regional/international priorities aligned with EU security/defence interests.
  • Creation of New Cross-Border Cooperation (Weighted x2)
  • Extent of new cross-border cooperation created between legal entities in Member States/EDF associated countries, especially SMEs and mid-caps.
  • Planned future cross-border cooperation opportunities.
  • Substantial participation and industrial/technological added value brought by cross-border SMEs and mid-caps.
  • Implementation (Weighted x1)
  • Effectiveness and practicality of the work plan structure (timing, inter-relation of work packages), illustrated by a Gantt/Pert chart.
  • Usefulness and comprehensiveness of milestones and deliverables (measurable, realistic, achievable).
  • Appropriateness of management structures, procedures, and risk management (identification, assessment, mitigation).
  • Appropriateness of task and resource allocation among consortium members, ensuring valid and complementary roles and high effectiveness/efficiency.

Compliance & Special Requirements

Regulatory Compliance
  • EU, International, and National Law: Projects must comply with all applicable laws.
  • EU Policy Interests: Projects must comply with EU policy interests and priorities (e.g., environment, social, security, industrial, trade).
  • EU Values: Respect EU values and European Commission policy regarding reputational matters.
Data Protection and Privacy
  • Personal Data: Collection, use, and processing of personal data for evaluation, management, monitoring, and communication must comply with applicable legal frameworks.
Environmental and Ethical Standards
  • Ethical Standards: Projects must comply with the highest ethical standards, including research integrity.
  • Ethics Review: Proposals will undergo an ethics review, and specific ethics rules (ethics deliverables) may be part of the Grant Agreement.
Intellectual Property Policies
  • Ownership of Results: Ownership of IP arising from and results of the action must remain within the beneficiary or affiliated entity during and after completion.
  • Control/Restriction: Results must not be subject to control or restriction by non-associated third countries/entities, nor exported/accessible outside EU/EDF associated countries without approval.
  • Access Rights: Specific access rights for the granting authority for policy purposes and further development of results.
Risk Management and Security Requirements
  • Security Scrutiny: Mandatory for projects involving classified information.
  • Classified Information Handling: Detailed rules apply (e.g., FSC for premises, PSC for personnel, no TRES SECRET UE/EU TOP SECRET info).
  • Security Aspect Letter (SAL): The applicable security framework will be detailed in this letter, annexed to the Grant Agreement.
  • Third-Country/International Organization Security: Beneficiaries must ensure projects are not subject to requirements that could affect implementation or grant award.
Unique Aspects and Strategic Opportunities
  • Technological Challenge Participation: The core of this grant is participation in a technological challenge on human-AI dialogue systems, including mandatory participation in evaluation campaigns.
  • Linked Actions: Actions selected under this topic will be linked to an action for the 'organisation' of the technological challenge (EDF-2025-LS-RA-CHALLENGE-DIGIT-HAIDO) via a 'linked action' mechanism, requiring a collaboration agreement between participants of both actions.
  • Defence Focus: Strong emphasis on defence applications of AI, contributing to the European Defence Technological and Industrial Base (EDTIB) and strategic autonomy.
  • Explainable AI (XAI): Systems must be able to justify their answers.
  • Sensitive Information Handling: Systems must properly handle and protect sensitive or classified information, adapting answers based on user group access rights.
  • Continuous Learning: Systems should learn continuously from user supervision without developer intervention and without regression.
  • Multilingual & Multi-Modal: Systems must cover all EU official languages and interact in writing and by voice.
  • Demonstrator Integration: Systems must be integrated into demonstrators for testing by defence users.
  • Business Coaching: Available for successful SME beneficiaries.
Cross-Cutting Considerations
  • Data Sovereignty and Security: Expected impact includes ensuring data sovereignty and security when using generative AI in defence.
  • Transparency: The AI-based correction system for evaluation is expected to be open source to ensure transparency of measurements.
  • Community Building: Expected to foster community building at the European defence level.

Grant Details

defence ai artificial intelligence dialogue systems chatbots large language models generative ai human-ai interaction privacy-preserving classified information data sovereignty security explainable ai continuous learning multilingual defence technology military applications european defence fund edf step digital technologies deep tech research and development technological challenge consortium sme innovation industrial base european union member states eea countries research actions
Privacy-preserving human-AI dialogue systems – Participation in a technological challenge
47789663TOPICSen
European Defence Fund (EDF)
OTHER
AT BE BG HR CY CZ DK EE FI FR DE GR HU IE IT LV LT LU MT NL PL PT RO SK SI ES SE IS LI NO
TECHNOLOGY OTHER
DEVELOPMENT
OTHER
SDG9 SDG16
FUNDING RESEARCH_DEVELOPMENT CAPACITY_BUILDING NETWORKING MENTORSHIP
20000000.00
None
5000000.00
EUR
100.00
Oct. 16, 2025, 4 p.m.
October 2025 - April 2026