Abstract: Over the last few years, the European Commission has provided significant support for both basic and applied research geared towards intelligent systems and networked information, in areas such as computer vision and cognitive systems, information extraction and multimedia content analysis, agent and Grid technologies, natural language and speech processing. These efforts are now culminating in a sizeable programme centred around the convergence of Semantic Web, Grid and Web Services technologies, characterised by a steady shift in focus towards systems integration and cross-disciplinary efforts. As the research programme enters its second phase of implementation, the time is ripe to assess progress and review likely research avenues for European efforts in the coming years.