The annual State of AI Europe report shows that European companies are significantly increasing their investments in artificial intelligence. However, a shortage of AI talent, security challenges, and unclear regulations are slowing down digital transformation in the region.
More and more companies in Europe are embracing AI applications to accelerate their digital transformation. According to the Prosus report, 61 percent of European enterprises now apply AI in at least one business process, an increase from 51 percent last year. The growing adoption is primarily driven by the need for efficiency, automation, and competitiveness within rapidly evolving markets.
While willingness is high, organizations are experiencing numerous obstacles. In particular, the shortage of specialized AI skills constitutes a barrier to further implementation according to 72 percent of the surveyed companies. The availability of suitable cloud infrastructure and risks surrounding security and privacy are also key areas of concern.
AI skills and cloud
The lack of trained AI profiles remains one of the biggest challenges, according to the report. More than seven out of ten companies indicate they have difficulty finding suitable talent, especially in fields such as machine learning, data analysis, and model development. This shortage not only slows down the introduction of new technologies but also puts pressure on existing IT teams.
Cloud infrastructure is seen as a crucial foundation for successful AI development. Sixty percent of companies are actively investing in cloud solutions to increase the scalability and speed of AI projects. The transition to cloud-native environments makes it possible to experiment more quickly with new models and applications.
Security and regulation
Security is a recurring concern for European companies working with AI. 62 percent cite security risks regarding data, model integrity, and privacy as major challenges. The report warns that a lack of clear guidelines leaves companies vulnerable to incidents, especially given increasingly strict European regulations.
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Furthermore, there is uncertainty regarding government policy. 60 percent of respondents find existing rules regarding AI insufficiently concrete, which can delay investment and innovation. Clear European legislation, such as the upcoming AI Act, is seen as necessary to stimulate trust and adoption.