The European Union is launching a new strategy to address the slow adoption of artificial intelligence by businesses across the bloc. Citing concerns that Europe is falling behind global competitors, the European Commission has outlined a plan to integrate AI into key economic sectors to stimulate growth and competitiveness.
Data shows that less than 14 percent of European companies utilized AI technologies in their operations last year. This figure highlights a significant gap compared to other major economies and has prompted officials to propose targeted measures to encourage wider implementation.
Key Takeaways
- Fewer than 14% of European businesses used AI last year, prompting a new EU strategy to boost adoption.
- The plan targets 11 specific industries, including manufacturing, healthcare, defense, and agriculture.
- A major challenge identified is that businesses, especially smaller ones, struggle to find AI solutions tailored to their specific needs.
- The EU aims to move companies beyond basic AI tools like chatbots toward integrating AI into core production processes.
- The strategy also acknowledges Europe's dependency on foreign AI hardware and models, which poses a supply chain risk.
A Critical Adoption Deficit
Recent figures reveal a troubling trend for the European economy. The rate of artificial intelligence adoption among businesses remains notably low, a situation the European Commission's AI Office director, Lucilla Sioli, described as "not a great number." The data indicates a significant disparity between Europe and other global economic powers.
While comprehensive data is varied, estimates from the U.S. Chamber of Commerce suggest that nearly 60 percent of small businesses in the United States are already using AI. A broader global survey by McKinsey puts potential worldwide AI adoption as high as 78 percent. These figures starkly contrast with Europe's 14 percent overall rate.
The Divide Between Large and Small Companies
Within Europe, a clear gap exists between large corporations and small to medium-sized enterprises (SMEs). Last year, approximately four out of every ten large companies in the EU had incorporated some form of AI. However, for smaller companies, that number dropped to just one in ten.
By the Numbers: AI Adoption Gap
- 14%: European businesses using AI in 2024.
- 40%: Large European companies using AI.
- 10%: Small European companies using AI.
- 60%: Estimated percentage of small U.S. businesses using AI.
This disparity is a central concern for EU policymakers. SMEs are the backbone of the European economy, and their slow uptake of transformative technology could hinder long-term economic growth and innovation across the continent.
A New Strategy to Drive Integration
In response to these challenges, the European Commission is set to release a comprehensive strategy designed to accelerate AI integration. The plan focuses on practical applications and aims to provide clear pathways for businesses to adopt AI in a meaningful way.
"Whenever a company or public office faces a new challenge, the first question must be: How can AI help?"
The strategy explicitly targets 11 key industries for focused support. These sectors range from traditional manufacturing and defense to high-tech fields like healthcare and mobility. The goal is to create tangible, sector-specific benefits that demonstrate the value of AI technology.
Acknowledging Dependence
The draft strategy does not shy away from Europe's current weaknesses. It acknowledges that previous efforts to develop homegrown, foundational AI models have been largely unsuccessful. The document also highlights the continent's "dependencies" on foreign AI hardware, which it identifies as a significant supply chain risk that could potentially be weaponized.
From General Tools to Core Processes
A primary obstacle for many businesses is understanding how AI can be applied to their specific operations. Many company leaders associate AI primarily with mass-market chatbots like OpenAI's ChatGPT, leaving them unsure of its utility for their specialized industrial or commercial processes.
Polish Digital Minister Dariusz Standerski highlighted this issue, noting that while hundreds of thousands of Polish companies are ready to invest, they struggle to find tailored solutions. He explained that companies often "only see ... universal solutions," not a "specific solution suited for [their] company."
Targeted Initiatives for Specific Sectors
The EU's plan aims to bridge this knowledge gap with a series of practical, industry-focused initiatives. Rather than promoting generic AI, the strategy proposes concrete tools and platforms:
- Agriculture: Development of a farmer-centric app store where agricultural businesses can browse and access AI-powered applications for crop management, resource optimization, and more.
- Manufacturing & Robotics: Creation of "acceleration pipelines" to help companies more rapidly develop and deploy AI-driven robotics and advanced manufacturing solutions.
- Healthcare: Increased support for AI models that can accelerate drug discovery and personalize medical treatments.
- Mobility: Investment in AI models designed to advance the development of autonomous driving technologies.
- Creative Industries: Support for studios specializing in AI-enhanced content production and the development of a platform for AI-powered translation to make news and media more accessible across languages.
- Defense: A plan to increase support for European AI models capable of real-time battlefield analysis, addressing the strategic dependence on foreign technology.
The Real Test of Success
Top officials at the Commission have emphasized that the ultimate goal is deep integration, not superficial adoption. The true measure of the strategy's success will be whether companies fundamentally redesign their core operations around AI.
"What we want to see is that companies integrate AI in their production process," stated Lucilla Sioli. "It’s not about having ChatGPT on your desk when you go to work, and then you tick a box that you use AI."
This sentiment was echoed by Małgorzata Nikowska, the AI Office’s head of unit for innovation and policy coordination. At a recent event, she stated that while adopting AI for support services is relatively easy, the real challenge and opportunity lie elsewhere.
According to Nikowska, the success of the new European strategy will be determined by its ability to persuade companies to completely rethink and re-engineer their production processes to leverage the full power of artificial intelligence. This shift is seen as essential for Europe to restore its economic momentum and secure its technological sovereignty in an increasingly competitive global landscape.