A recent study has revealed that many small and mid-sized businesses across Europe are adopting artificial intelligence tools without having essential digital systems in place, potentially putting them at a disadvantage compared to larger firms.
The research, conducted by a European fintech company in collaboration with a market research firm, showed that 46% of SMEs in France, Germany, Italy, and Spain use AI tools like ChatGPT daily. However, only a small portion have implemented basic digital infrastructure such as accounting software, video conferencing, data analytics, or digital document management.
This approach is creating a paradox where businesses are relying on advanced AI without a strong digital foundation, raising concerns about long-term growth and competitiveness. The study also highlighted that two out of five companies feel unprepared for digital transformation, representing roughly 10 million SMEs across Europe.
Germany emerged as the most digitally prepared country, with 76% of businesses confident in their capabilities, while France lagged behind, with nearly half of companies feeling ill-equipped for the shift.
“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 Alexandre Prot, Chief Executive of the fintech company.
The study suggests that targeted measures could help bridge the digital gap. Recommendations include reducing regulatory burdens in Germany, addressing skills shortages in Spain, and tackling cultural resistance in France. Strengthening these areas could enhance competitiveness and allow SMEs to use AI more effectively without jeopardizing operational stability.
With large corporations steadily scaling AI investments while building core digital systems, small businesses risk being left behind if they focus solely on advanced technology without solid digital groundwork.
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