StepUp Startups report: How AI is revolutionising business support processes for European SMEs

A new report from the StepUp Startups project details the growing impact of Artificial Intelligence on European business support functions, including HR, finance, and customer relations, offering key insights for stakeholders. The report highlights the significant changes AI is bringing to Europe's digital economy, a critical area for growth and competitiveness. The findings are particularly relevant for founders, investors, and policymakers looking to understand the evolving landscape. In 2024, only 13.5% of European enterprises reported using AI technologies, an increase from 8% in 2021. The adoption rate varies significantly by company size, with large firms leading at 41.2%, followed by medium-sized companies at 21%, and small ones at 11.2%. The Nordic countries are at the forefront of adoption, while Eastern Europe lags behind, indicating a regional disparity in AI integration. AI offers clear benefits, such as improved efficiency and the ability to free up staff to focus on higher-value tasks. However, challenges persist, including data accuracy concerns, legal uncertainty, and issues related to ethics, privacy, and security. Furthermore, access to talent and high implementation costs are significant barriers, making many companies cautious about AI investments. The report underscores the need for strategic support to enhance AI adoption. To accelerate AI adoption, the report recommends improving conditions for greater AI uptake, strengthening Europe’s AI startup ecosystem, and providing targeted support to SMEs. These measures include providing standards, scaling up access to sandboxes, establishing an AI Startup Scale-up Fund, and developing AI Clusters. The full report is available for download, offering a more detailed overview of AI adoption, opportunities, and challenges across European business support processes.