Finance
European small businesses rush into AI without basic digital tools, study shows
Published by Global Banking and Finance Review
Posted on October 8, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 8, 2025
2 min readLast updated: January 21, 2026
European SMEs are adopting AI but neglecting essential digital tools, risking their competitiveness. A study highlights regional digital readiness variations.
By Gianluca Lo Nostro
(Reuters) -Most European small and mid-sized enterprises are prioritizing artificial intelligence systems over basic digital tools across their businesses, losing ground to bigger firms investing in core digital systems, a study published on Wednesday showed.
WHY IT'S IMPORTANT
While large corporations are steadily adopting AI software and scaling up investments, small businesses across Europe often lack relevant expertise and digital infrastructure.
Companies are turning to this technology to automate tasks and reduce costs across the board, resulting in job cuts which are shaking up entire industries.
The survey, conducted by French fintech Qonto, found that 46% of European SMEs use AI tools like ChatGPT daily but only a fraction of them implement digital accounting, video conferencing, data analytics or digital document management.
This inconsistency is causing a striking paradox that could threaten the future of Europe's economic backbone, Qonto says.
BY THE NUMBERS
The report was conducted alongside research firm Appinio after interviewing 1,600 senior decision makers in France, Germany, Italy and Spain.
Two out of every five businesses feel unprepared for digital transformation, representing 10 million companies across Europe, according to the report.
Germany stands out with 76% of businesses feeling well prepared while France struggles with nearly half feeling inadequately equipped for the digital shift.
KEY QUOTE
"While AI offers exciting opportunities, we believe European businesses will have to build strong digital foundations that can support their long-term growth and innovation goals," said Qonto's Chief executive, Alexandre Prot.
WHAT'S NEXT
The survey suggests targeted interventions could help close Europe's digital gap.
Reducing regulatory burdens in Germany, addressing skills shortages in Spain, and overcoming cultural resistance in France could strengthen competitiveness against better-equipped rivals increasingly using AI to slash costs and streamline operations.
(Reporting by Gianluca Lo Nostro; Editing by Matt Scuffham)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn. AI can perform tasks such as problem-solving, understanding language, and recognizing patterns.
Small and medium-sized enterprises (SMEs) are businesses whose personnel numbers fall below certain limits. They play a crucial role in the economy by providing employment and contributing to innovation.
Digital transformation is the process of using digital technologies to create new or modify existing business processes, culture, and customer experiences to meet changing business and market requirements.
Digital readiness refers to the preparedness of an organization to adopt digital technologies and processes. It encompasses the necessary skills, infrastructure, and mindset to leverage digital tools effectively.
A fintech company is a business that uses technology to provide financial services. This includes areas such as banking, payments, investment, and insurance, often aiming to improve efficiency and accessibility.
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