European SMEs Push AI Adoption Amid Economic Headwind

European SMEs Push AI Adoption Amid Economic Headwind

European small and medium-sized enterprises are pressing forward with artificial intelligence despite economic volatility and rising competitive pressure, according to new research released by Sharp Europe.

The study shows that trust in AI has grown substantially over the past year, with three-quarters of SME owners feeling more confident in the technology than they did twelve months ago. Even so, many leaders admit their organisations still aren’t tapping into AI’s full potential.

Drawing on insights from 2,500 SME decision-makers across ten European markets, the findings indicate that more than half of respondents are pushing AI adoption specifically because of ongoing economic uncertainty, while a similar proportion feel compelled to match rivals already leveraging advanced tools. Yet 55 percent still worry that their companies are not using AI as effectively as they should, a gap that continues to widen as the technology becomes more deeply embedded in day-to-day work.

The research further shows that nearly two-thirds of SME owners consider AI to be fully integrated into their operations, and more than half believe its expansion will give employees room to develop new skills. Nonetheless, concerns among staff remain stubborn: leaders report that many employees feel uneasy about their technical capabilities, doubt the reliability of AI-generated results, or fear that turning to AI may be seen as cutting corners. Ethical unease—such as the worry of appearing “lazy” by using AI—also continues to surface.

To counter these challenges, a growing number of SMEs have already trained their entire workforce on AI tools, strengthened data protection to support AI integration, or invested in new software licences to sustain long-term use. Even with these efforts, almost half of SME leaders say they still need clearer guidance on adopting and using AI both efficiently and securely.

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