SME Packages AI: How Luxembourg Businesses Can Fund Up to €17,500 of Their AI Project in 2026

Most Luxembourg business owners are sitting on money they don't know about.

There's a government grant programme — SME Packages AI — that covers up to 70% of your AI implementation costs, with a ceiling of €17,500 per project. Yet the majority of eligible SMEs either don't know it exists or assume the application process is too complicated to bother with.

This guide breaks down exactly how the programme works, what qualifies, and how to maximise your chances of approval — so you can finally implement that AI automation project without the full price tag.

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What Is the SME Packages AI Programme?

SME Packages AI is a financial aid scheme run by Luxembourg's Ministry of Economy. It's part of the broader SME Packages initiative, which funds digital transformation projects for small and medium-sized enterprises established in Luxembourg.

The AI-specific package was introduced to accelerate adoption of artificial intelligence tools across the local economy. In practice, it means the government pays 70% of your eligible costs — you cover the remaining 30%.

The maximum subsidy is €17,500, which corresponds to a total project budget of roughly €25,000. For smaller automation projects, the subsidy scales proportionally.

Who Is Eligible?

To qualify, your business must:

• Be registered and operating in Luxembourg
• Have fewer than 250 employees
• Have an annual turnover under €50 million (or a balance sheet under €43 million)
• Not be in financial difficulty

Most Luxembourg SMEs — from law firms to logistics companies to family-owned businesses — fall squarely within these criteria.

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What Types of AI Projects Qualify?

The programme covers a wide range of AI-powered implementations. Eligible projects include:

Automation and workflow tools — software that automates repetitive tasks like data entry, invoice processing, scheduling, or reporting. If your team spends hours each week on tasks a machine could handle, this is exactly what the grant is designed for.

AI assistants and chatbots — customer-facing chat tools, internal knowledge assistants, or AI agents that handle routine enquiries, triage incoming requests, or support your team with research and drafting.

Custom AI software — purpose-built applications tailored to your business processes, from predictive analytics to AI-driven document management.

AI integration projects — connecting AI tools to your existing CRM, ERP, or operations software to create intelligent, connected workflows.

What doesn't qualify: generic software licences, hardware purchases without an AI component, or projects that are primarily marketing rather than operational.

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How the Application Process Works

The application is managed through Guichet.lu, Luxembourg's official business portal. Here's how the process typically unfolds:

Step 1: Define your project scope. Before applying, you need a clear description of what you're implementing, what problem it solves, and what outcomes you expect. This is also the stage where you should get a quote from your implementation partner — the grant covers costs from accredited providers.

Step 2: Submit your application. The application asks for your company details, a project description, itemised budget, and supporting documentation. Applications are reviewed on a rolling basis.

Step 3: Await approval. Processing times vary, but applicants typically receive a decision within a few weeks. It's important not to begin the project before receiving formal approval — costs incurred before approval are not eligible.

Step 4: Implement and claim. Once approved, you proceed with implementation and submit invoices at the end to receive reimbursement for the covered portion.

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How to Maximise Your Application

A well-structured application stands a significantly better chance of approval. Three things make the biggest difference:

Be specific about the problem you're solving. Vague applications ("we want to use AI to become more efficient") are less persuasive than concrete ones ("our team spends 12 hours per week manually processing supplier invoices — this project will reduce that to under 1 hour").

Quantify expected outcomes. Include estimated time savings, error reduction rates, or cost savings where you can. The Ministry is investing in measurable productivity improvements, not experiments.

Work with an experienced implementation partner. Providers who have worked with the SME Packages programme before understand what the application reviewers expect. They can help you frame the project correctly and ensure your documentation meets the requirements.

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A Practical Example

One of our clients — a 15-person fiduciary firm in Luxembourg City — used SME Packages AI to fund an AI-powered document processing system. Their project total came to €18,500. The grant covered €12,950 (70%), and the firm paid €5,550 out of pocket.

The system now handles document classification, data extraction, and routing automatically — tasks that previously took a senior associate roughly 2.5 hours each day. The ROI was positive within the first quarter.

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Don't Leave Government Money on the Table

The SME Packages AI programme is one of the most accessible business grants currently available in Luxembourg. The 70% subsidy rate is generous, the eligibility criteria are broad, and the qualifying project types align with the kinds of automation investments that genuinely move the needle for SMEs.

The main barrier isn't the process — it's simply knowing the programme exists and having a clear project to submit.

Ready to explore what's possible? At 20 More, we help Luxembourg SMEs design AI automation projects that qualify for SME Packages AI funding — and we handle the implementation once approval comes through.

Book a free consultation to discuss your project →

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Related reading: What Is an AI Agent — and How Luxembourg Businesses Are Using Them in 2026 | Enterprise IT Assessment: Is Your Business Ready for AI?