SMEs Risk Falling Behind as AI Outpaces Digital Basics in Europe

SMEs across Europe are increasingly prioritizing artificial intelligence over fundamental digital technologies, a study revealed on Wednesday. The report highlights a disconnection between AI applications and basic digital infrastructure that could undermine the competitiveness of smaller businesses against larger firms.

The survey, conducted by French fintech company Qonto and research firm Appinio, involved 1,600 senior decision-makers from France, Germany, Italy, and Spain. Results indicated that while 46% of SMEs use AI tools like ChatGPT daily, few have adopted crucial technologies like digital accounting or data analytics. This imbalance threatens the future resilience of SMEs, which form the backbone of Europe's economy.

In response, industry experts urge the creation of robust digital foundations to support future growth. Suggested interventions include easing regulatory pressures in Germany, addressing Spain's skills gap, and countering cultural resistance in France to enhance competitiveness. These actions aim to empower European SMEs as they integrate AI to boost efficiency and cut costs.

(With inputs from agencies.)