UKM In Europe Intensively Adopts AI, But Ignores Basic Digital Equipment

Alexandre Prot, CEO of Qonto. (photo; x @PavelNosok ·)

JAKARTA - A recent study shows that most small and medium enterprises (SMEs) in Europe are now prioritizing the implementation of artificial intelligence (AI) systems over building basic digital infrastructure in their businesses. As a result, these companies lag behind large corporations that strengthened their digital foundations before switching to AI technology.

The report highlights the widening gap between large companies and SMEs in Europe. While multinational corporations continue to increase their investment in AI software and expand its implementation, many small businesses in Europe do not yet have adequate digital expertise and infrastructure.

This phenomenon shows a striking paradox: on the one hand, SMEs are excited to use tools like ChatGPT for efficiency, but on the other hand they are still left behind in terms of basic digitization such as digital accounting, video conferencing, data analysis, or electronic document management.

Study Main Findings

This research was conducted by French fintech company Qonto in collaboration with research institute Appinio. A total of 1,600 senior decision makers from four major European countries France, Germany, Italy and Spain responded to the survey.

The results show:

46% of SMEs in Europe use AI tools such as ChatGPT every day.

However, only a small part of them use basic digital tools to manage business operations.

Two out of five businesses claim not to be ready to face digital transformation representing about 10 million companies across Europe.

Differences Between Countries

Germany stands out as the most prepared country, with 76% of businesses feeling well digital readiness. On the other hand, France faces big challenges, as nearly half of its business admits it is not ready to adapt to rapid digital changes.

"AI does offer extraordinary opportunities, but we believe that businesses in Europe must first build a strong digital foundation in order to sustain their long-term growth and innovation," said Alexandre Prot, CEO of Qonto.

The impact and next Step According to the report, the use of AI indeed helps companies automate various tasks and cut costs, but this also leads to a reduction in labor in a number of sectors. This rapid shift can shake economic stability if it is not balanced with strengthening basic digital capacity.

The report also recommends special steps to close the digital divide in Europe, among others:

Reducing the regulatory burden in Germany so that digital innovation is easier to develop.

Overcoming the shortage of digital experts in Spain.

Changing the business culture in France, which still tends to be resistive towards technological changes.

With the right intervention, Europe has the potential to strengthen its SME competitiveness and balance AI's use with strengthening basic digital capabilities a combination that is believed to be important to maintain economic competitiveness in the era of global automation.