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AI Adoption Surges in Europe, Accelerating Digital Transformation

By  |  February 1, 2024

A recent report commissioned by Amazon Web Services (AWS) has revealed that over a third of European businesses embraced artificial intelligence (AI) in 2023, marking a significant leap in adoption compared to the previous years. The surge in the use of generative AI played a pivotal role in this transformative shift.

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    The study, conducted by Strand Partners, surveyed more than 16,000 citizens and 14,000 businesses across Europe. It found that 38% of companies were actively experimenting with AI, reflecting a growing appetite for innovation and technology adoption, reported Reuters. Tanuja Randery, Managing Director at AWS, highlighted the impact of generative AI on this trend, stating, “From Malmo to Milan, the accessibility of generative AI created an appetite for experimentation among consumers and businesses.”

    This notable increase in AI adoption is seen as a positive development in the context of the European Commission’s 2030 Digital Decade vision. In 2021, the EU executive presented ambitious goals, aiming for 80% of the population to acquire basic digital skills, widespread 5G connectivity, and 75% of EU companies utilizing cloud services. However, a report in 2022 revealed that only a quarter of EU businesses had adopted AI, putting the region at risk of falling behind its Digital Decade objectives.

    Read more: Amazon Increases Competition In AI Against Microsoft

    The accelerated uptake of AI in 2023 seems to have turned the tide. Tanuja Randery emphasized that “the accelerated uptake of AI last year has helped put Europe on track to meet its Digital Decade goals.” This shift indicates a positive momentum toward the envisioned digital transformation of the region.

    The report estimated the economic impact of AI adoption at an additional 600 billion euros, surpassing an earlier estimate of 2.8 trillion euros. This underscores the potential of AI technologies to drive economic growth, innovation, and competitiveness across various sectors.

    In light of these findings, it appears that European businesses are increasingly recognizing the strategic importance of AI in staying competitive and meeting the challenges of the digital era. As the region continues to harness the potential of artificial intelligence, it is poised to make substantial progress towards achieving its Digital Decade goals by 2030.

    Source: Reuters