European businesses barely use AI. Brussels wants to fix that.

The European Union is launching a new strategy to accelerate artificial intelligence adoption among its businesses, citing a critical lag in corporate AI integration. Less than 14% of European companies utilized AI last year, significantly trailing global trends, which the EU views as a major impediment to its competitiveness against U.S. dominance in the AI sector.

Analysis

BRUSSELS — The EU says it has a new problem when it comes to artificial intelligence: Companies are not using it. As Europe struggles to counter America’s overwhelming dominance in the artificial intelligence space, a strategy out Wednesday and seen by POLITICO will target faster adoption of the technology as a way to turn things around. European companies have been slow to deploy AI to change the way they’re working. Less than 14 percent of European businesses used AI in their activities last year, well behind the global trend. The European Union faces a critical competitive challenge in Artificial Intelligence adoption, with less than 14% of its businesses deploying AI last year, significantly lagging global trends. This low integration rate is identified as a primary factor hindering Europe's ability to compete with the United States' overwhelming AI dominance. The overall sentiment surrounding this issue is strongly negative and pessimistic, reflecting concerns over the bloc's technological standing. In response, the EU is launching a new strategy specifically designed to accelerate AI utilization across its corporate sector. This policy initiative aims to reverse the current trend and foster greater technological integration, which is deemed essential for future economic competitiveness. The market impact of this strategic shift is assessed as moderately significant. The situation highlights key themes including Artificial Intelligence, Technology & Innovation, and Regulation & Legislation. The emphasis on "Antitrust & Competition" suggests the EU views this as a competitive disadvantage requiring strategic intervention. This proactive stance indicates potential future regulatory frameworks aimed at stimulating AI adoption and addressing market imbalances.

Key Decisions for Investors

• Investors should closely monitor upcoming EU regulatory frameworks and incentives aimed at accelerating AI adoption.
• Identify European companies positioned to benefit from increased AI investment and integration.
• Assess the long-term competitive implications for European businesses lagging in AI implementation.