A study by the ECB’s SAFE survey reveals Euro area firms systematically underestimate competitors’ AI investments, with gaps ranging from 20% to 80% and average discrepancies of up to 20 percentage points. Providing firms with actual competitor data increased their perceived share by 4.3 percentage points, influencing investment expectations. Accurate information about competitors’ AI adoption raised firms’ expected investment by 2 percentage points and boosted anticipation of domestic adoption. Analysis of 2025 data shows 70% of euro-area firms use AI, but only 7% use it intensively. Adoption varies by country and sector, with ICT and R&D leading and construction lagging. Skill shortages are the primary barrier, while financing relies heavily on internal funds and subsidized loans. Policies to accelerate AI diffusion, particularly for SMEs and lagging sectors, are recommended. The study proposes a framework to analyze AI investment scope, financing, and constraints, emphasizing the role of non-bank financing in Europe.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
Made by AI. If you spot anything of concern write us at contact@cybach.com. We’ll promptly correct irregularities.