according toInfosysInstitute of Knowledge (IKI)up to dateResearch,EuropeWe are increasing our support for generativeAI(GenAI) investment, but is moving more cautiously than North America. The study predicts that European companies will increase their GenAI investments by $115% to $2.8 billion in the coming year.
Investment in Europe is slower than in North America, where spending is expected to approach $6 billion. This more cautious investment is primarily driven by ethical and bias issues in the more stringent European market. However, European companies remain optimistic about the impact of GenAI on their business and are more confident in their ability to train and recruit talent, and manage and control generative AI systems.
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IKI surveyed 1,000 respondents from 11 Western European countries: Belgium, Denmark, Finland, France, Germany, Iceland, Luxembourg, the Netherlands, Norway, Sweden and the United Kingdom.leaderInterviews with AI practitioners provided the following insights.
1. France and Germany lead in spending and adoption
- France and Germany are expected to double their spending on GenAI over the next 12 months, with France reaching nearly $730 million and Germany reaching nearly $610 million.
- In both countries, around 50% of businesses have implemented GenAI or have implemented and created business value from it, compared to around 40% in the UK, Benelux and Nordics.
- The UK is expected to surpass Benelux in the next 12 months, doubling its spending to nearly $5.1 billion.
- Nordic companies are expected to spendHighestIf the rate of growth continues, current spending will increase by more than 2.5 times to more than $470 million.
2. European companies are deploying GenAI, but rarely creating business value
- Despite a high level of experimentation and implementation of GenAI among European companies, only 6% of companies are creating business value through their GenAI use cases. France, Germany, and the UK lead the region, with around 10% of companies reporting value delivered by their GenAI projects.
3. European companies are more concerned about ethics and bias, and more confident in managing and controlling GenAI
- European companies ranked ethics and bias as the second biggest challenge after data privacy and security. North American companies, on the other hand, paid less attention to ethics and bias, ranking it behind data privacy, unusable data and lack of skills.
- European companies also have more board involvement in GenAI policy making, reflecting their focus on regulation. In Europe, boards set rules and policies at more than 30% companies and are the primary sponsors in nearly 20%.
- More than 70% European respondents expressed confidence in GenAI’s management capabilities.
Infosys Global AI and Industry VerticalsLeaders Balakrishna DR (Bali) said: “Generative AI is driving a massive transformation in the industry and investments are being made at a rapid pace. In a changing regulatory environment, organisations must embed responsible AI technologies, not only improving data quality and governance, but also effectively managing ethical and bias risks. Our research shows that to gain business value, European companies must develop and evolve operating models with AI at their core, prioritising business transformation and skills development, and making themmaximummaximizing human potential.”