Many small and medium-sized enterprises (SMEs) in Europe are aggressively adopting artificial intelligence, even though they lack foundational digital infrastructure, a new study reveals.
The survey, carried out among 1,600 decision-makers in France, Germany, Italy, and Spain, shows that while 46% of SMEs say they use AI tools like ChatGPT daily, only a small share have implemented essential digital systems such as accounting software, video conferencing tools, data analytics, or document management platforms.
This mismatch is creating what researchers describe as a paradox: businesses are investing in cutting-edge automation without having the digital backbone needed to support it. Experts warn this could limit the benefits of AI adoption or even backfire.
Digital Foundations Missing as AI Adoption Climbs
The study — conducted by French fintech Qonto with research assistance from Appinio — highlights an urgent gap in digital readiness. It finds that nearly 10 million small businesses across Europe feel unprepared for the transition to a fully digital operating model.
While larger corporations expand AI investments in a structured way, many smaller businesses are skipping over fundamental technologies in pursuit of automation and efficiency gains.
In Germany, the report notes, 76% of firms feel well prepared for digital change. Meanwhile, in France, nearly half of respondents say they are ill-equipped to navigate digital transformation.
Alexandre Prot, CEO of Qonto, commented: “While AI offers exciting opportunities, European businesses will have to build strong digital foundations that can support their long-term growth and innovation goals.”
Risks and Realities
Without robust underlying systems, companies risk encountering inconsistent performance, security vulnerabilities, and integration issues. AI depends heavily on data flows, reliable connectivity, and structured digital processes. If those are missing, the results can be disappointing or even disruptive.
The trend has worrying implications for Europe’s economic core. SMEs make up a significant portion of the continent’s employment and GDP. If they fall behind in digital capability, the broader competitiveness of European markets could erode.
The report suggests a trio of levers to address these gaps:
- Regulatory relief in countries like Germany to ease burdens on technology upgrades
- Targeted skills programs in Spain to overcome talent shortages
- Cultural shifts in France to reduce resistance toward digital adoption
What Comes Next?
Closing the digital divide will be essential for SMEs to fully harness AI’s potential. Policymakers, industry groups, and technology providers all play a role in providing incentives, training, and tools.
Without these steps, Europe could see an uneven growth trajectory — where advanced firms pull ahead and less prepared SMEs fall further behind.
