The adoption of artificial intelligence (AI) in Europe is accelerating rapidly, with five businesses incorporating AI into their operations every minute, according to AWS’s “Unlocking Europe’s AI Potential 2025” report. Over the last year, 42% of European businesses are now consistently using AI, and more than 90% of these companies have reported an increase in revenue or productivity due to the technology. This pace of growth is astonishing, surpassing that of mobile phone adoption in the 2000s, when growth peaked at just 18% between 2007 and 2008.
The rise in AI adoption represents nearly three million businesses across the continent, with a notable 27% increase from last year. If this momentum continues, Europe is on track to see near-universal AI adoption by 2030. This transformation could potentially add over €400 billion to the continent’s GDP. However, while the overall figures are promising, a widening gap between small startups and larger enterprises could create a two-tier AI economy.
A Two-Tier AI Economy Emerging
The report reveals that startups are far outpacing established large companies in both AI adoption and innovation. While 68% of startups have adopted AI, only 53% of larger enterprises have done so. Additionally, 37% of startups are creating AI-driven products, compared to just 13% of large enterprises. The report also notes that 42% of startups use AI to drive innovation, while only 17% of larger companies do the same.
In contrast, only a quarter of large enterprises have a comprehensive AI strategy, and a mere 3% have integrated AI into the core of their operations. Many larger firms are struggling to unlock AI’s full potential, despite reporting productivity gains from its use. The disparity between the AI adoption rates of startups and established enterprises is raising concerns that Europe’s competitiveness may hinge on how AI is implemented across the board.
Key Barriers to Widespread AI Adoption
Several barriers are hindering deeper AI adoption across all business sizes in Europe. These include:
- Skills Gap: Businesses expect AI literacy to be a requirement for half of the new jobs created in Europe over the next three years. However, only a quarter of businesses feel they have a strong AI skillset.
- Regulatory Uncertainty: Nearly 70% of businesses are uncertain about their responsibilities under the EU’s AI Act. This lack of clarity has led to a decrease in investment, with affected companies planning to invest 28% less in AI than those who understand the regulations.
- Perceived Costs: 35% of businesses cite cost as a barrier to AI adoption, yet more than 90% of businesses that have implemented AI have seen an increase in revenue. For startups, access to venture capital is critical, as over half of them identify funding as a major growth driver.
Steps to Accelerate AI Adoption In Europe
To ensure that AI adoption continues at its current pace and benefits businesses of all sizes, AWS has outlined a three-point plan for governments and policymakers to follow:
- Pro-Growth Regulatory Environment: Streamline compliance costs and harmonise regulations across Europe to encourage efficient scaling.
- Private Sector Digital Adoption: Facilitate easier access to finance for startups and all businesses, and introduce industry-specific AI skills training programs.
- Modernising Public Sector Technology: Focus on digital transformation in sectors like healthcare and education and use public procurement to foster innovation.
AWS is dedicated to supporting the broad adoption of generative AI and has pledged significant resources to support European businesses. The company has committed to investing $1 billion in cloud credits for AI-driven startups in 2025 and $100 million for educational initiatives to ensure that underserved communities can access AI and cloud computing skills.
The Future of AI Adoption in Europe
AI is undeniably transforming industries across Europe. As businesses of all sizes continue to embrace this technology, the potential for economic growth is vast. However, to maintain Europe’s competitive edge, it is essential to ensure that AI adoption becomes deeply integrated across both startups and larger enterprises. Addressing the barriers to adoption and fostering a supportive environment will be crucial to unlocking AI’s full potential.
