A third of European businesses have adopted AI, reflecting 32% growth since last year, a commissioned report by Amazon Web Services has revealed.
The report Unlocking Europe’s AI Potential in the Digital Decade, said if maintained, AI adoption could contribute an additional €600 billion in gross value added (GVA) to the European economy by 2030.
This would bring the estimated total economic impact of tech adoption in the region to €3.4 trillion by 2030, an increase from last year’s forecast of €2.8 trillion, it said.
However, the report suggests that to unlock AI’s full potential, countries across Europe must tackle three critical issues: creating a pro-innovation environment; addressing Europe’s digital skills gap; and ensuring businesses of all sizes have access to the latest technologies.
Although three-quarters of firms that use AI reported increased revenues and productivity, adoption of AI and other technologies is currently skewed towards larger companies, with SMEs reporting significant barriers such as finding the right talent, regulatory concerns, and the cost of implementation.
According to the report, regulatory uncertainty and a lack of digital skills is holding back investment in many businesses. Sixty-one per cent of European businesses said a digital skills gap impacts their business performance, while over a quarter (26%) said this has prevented them from adopting Al.
Source: Amazon Web Services
Alongside this, the report highlights that 21% of European businesses identify compliance and legal uncertainties as a significant barrier to their adoption of digital technology. This rises to 45% among businesses that already use multiple AI technologies. Those citing such concerns plan to invest 48% less in technologies over the next three years, compared to those that don’t face such barriers.
Despite concerns regarding skills and regulation among businesses, half of Europeans believe AI will create more opportunities than risks with regard to job security and the future of work. Furthermore, 65% of Europeans anticipate that AI will transform healthcare and education over the next five years, and over half (52%) believe that AI will be important in addressing major societal challenges, such as climate change and disease control.
Tanuja Randery, Managing Director of AWS Europe, Middle East and Africa (EMEA) said: “Europe stands on the brink of an unprecedented opportunity “Businesses recognise the benefits of AI to their growth and productivity. SMEs account for more than half of Europe’s GDP, and confronting the challenges holding back their digital journey is vital.
She added: To achieve AI’s full potential, it is imperative that Europe delivers the digital skills support and regulatory certainty to support the ambitions of businesses of all shapes and sizes.”
