European Commission shifts AI focus to business adoption

European Businesses Struggle With Artificial Intelligence Adoption Amid Productivity Pressures

European business adoption of artificial intelligence remains low, with only 1 in 5 regional companies utilizing the technology by the end of last year, according to data from Eurostat. That adoption rate sits behind policy goals, prompting officials to focus less on building AI and more on how to use it to turn around productivity.

The strategic shift follows a Sept. 4 seminar where the Commission’s AI envoy, Siemens chair Jim Hagemann Snabe, told 27 commissioners that the bloc should focus less on winning the race to build AI and more on how to use it to turn around the bloc’s productivity, two Commission officials said.

Denmark Leads While Romania Trails Regional AI Metrics

Adoption rates across the continent vary widely by member state and company size. Eurostat figures show Denmark leading the pack with 42% of businesses using AI, while Romania ranks at the bottom at 5.2%.

The gap stems primarily from small and medium-sized enterprises, which make up the lion’s share of Europe’s economy. Last year, 55% of the bloc’s large companies deployed artificial intelligence, compared to just 17% of small firms. A recent OECD report notes that smaller companies limit themselves to off-the-shelf AI tools for specific tasks.

Expertise Shortages Outrank Regulatory Fears for Reluctant Firms

When companies evaluate artificial intelligence and decide against implementation, a lack of expertise ranks as their top concern, even before regulatory concerns. That barrier outranks regulatory worries for European businesses, even as American business leaders frequently cite regulatory and political uncertainty as their main constraint.

To bridge the skills and deployment gap, the European Commission is rolling out targeted initiatives. On Nov. 16, the commission hosts an “Apply AI summit” designed to accelerate AI implementation in strategic industries.

Strategic Industries Targeted for Commission Intervention

European Commission President Ursula von der Leyen highlighted six sectors with the biggest potential: health, transport, agrifood, advanced manufacturing, defense, and space. Despite the heavy focus on commercial application rather than foundation models, some officials in Brussels continue to push back against claims that Europe has abandoned underlying model development entirely.

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