Over the past year, the adoption of AI by European businesses has grown by 32%, and this trend, if sustained, could add €600 billion in gross value added (GVA) to the European economy by 2030. This significant potential boost is equivalent to the entire value of Europe’s construction industry, as highlighted in a report commissioned by Amazon Web Services (AWS) and conducted by Strand Partners. The report, titled “Unlocking Europe’s AI Potential in the Digital Decade”, projects that the total economic impact of technology adoption could reach €3.4 trillion by 2030, up from last year’s forecast of €2.8 trillion.
For AI to fully realise its benefits across Europe, the report suggests that countries need to focus on three key areas: fostering an innovation-friendly environment, bridging the digital skills gap, and ensuring access to the latest technologies for businesses of all sizes. Currently, larger companies are more likely to use AI (51%) compared to small and medium-sized enterprises (SMEs) (31%). SMEs face challenges such as a lack of skilled talent, regulatory complexities, and the high cost of AI implementation, limiting their adoption rates.
However, the advantages of AI are already clear for those businesses that have embraced it. Around 75% of companies using AI report improvements in both revenue and productivity. AWS Managing Director for EMEA, Tanuja Randery, emphasised that the opportunities AI presents are vast and must be accessible to all, including SMEs, which contribute over half of Europe’s GDP. By addressing digital skills and regulatory clarity, Europe can help businesses of all sizes take full advantage of AI.
One example of AI’s potential comes from Growy, a Netherlands-based agricultural technology company using AI and the Internet of Things (IoT) to optimise automated farms. Jochem Meuwese from Growy explained how AI is driving sustainability by boosting crop yields and protecting soil quality, showing how AI can tackle critical issues like food insecurity.
Despite some concerns around regulation and skills shortages, half of Europeans believe AI will create more job opportunities than risks. In addition, 65% of people expect AI to transform sectors such as healthcare and education within the next five years, while 52% see it as crucial for addressing societal challenges like climate change and disease control.
Cloud technology is central to the broader adoption of AI and digital tools. More than half of European businesses report that cloud computing has grown in importance since 2022, and 80% consider it essential. If this trend continues, the EU could achieve its target of having 75% of businesses using cloud technologies by 2030. AWS has been investing heavily in Europe’s digital infrastructure since 2007, playing a key role in building the foundation for future growth and innovation across the continent.
Europe’s AI journey is filled with promise, and with the right support and regulatory environment, businesses across the region can unlock transformative potential, driving both economic growth and societal progress.
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