European enterprises are rapidly adopting artificial intelligence (AI) and automation technologies, with 92% of organizations implementing these solutions in the past two years, according to new research from Digitate. The study, titled ‘The Race to Outpace: How AI and Automation are Driving European Enterprises Across the Finish Line,’ explores the state of AI and automation adoption, the challenges faced, and the future outlook for these technologies. While adoption is widespread, the report highlights that many companies are still working to develop comprehensive strategies for effectively integrating these technologies.
Key Findings from the Research
The study, based on surveys of 900 IT decision-makers across seven European countries, reveals the following insights:
- Investments in AI and Automation: European organizations have collectively invested an average of €103.4 million in AI and automation over the past two years, with over 59% of companies spending up to €295 million.
- Return on Investment (ROI): 86% of organizations have reported a ROI of €154.7 million on average, reflecting the significant impact of these technologies.
- Benefits Realized: The main benefits organizations have realized from AI and automation are:
- 60% report time savings
- 57% cite greater efficiency
- 55% experience increased productivity
- Deployment in IT Operations: 81% of organizations use automation, and 62% use AI within their IT departments, making IT operations the leading area of deployment.
- Cloud Strategy Shifts: 94% of organizations plan to change their cloud strategy within the next 2-3 years, with 54% transitioning to a multi-cloud strategy.
- Autonomous Operations: Organizations expect a significant shift toward autonomous operations over the next five years. The percentage of companies using self-learning automation is projected to more than double, from 7% to 20%.
Challenges to Overcome
Despite the enthusiasm for AI and automation, organizations face several challenges:
- Top Obstacles: Budget constraints and lack of technical skills (both at 29%) are the leading obstacles to successful implementation, followed by issues related to data collection and management (28%).
- Human Intervention: 43% of organizations report that their current automation implementations still require more human intervention than desired.
Regional Variations in Adoption
The research also revealed significant regional differences in AI adoption:
- Finland leads in generative AI adoption, with 98% of organizations deploying these tools.
- UK organizations struggle with technical skills gaps, making this their primary obstacle to AI adoption, surpassing budget constraints.
- French companies are more cautious, with 24% reporting that they have not yet widely deployed generative AI tools, the highest percentage among the surveyed countries.
Future Outlook
Looking ahead, 78% of organizations plan to implement additional AI or automation technologies within the next two years. The focus areas for future deployment include:
- IT operations: 74%
- Cybersecurity: 56%
- Network monitoring: 39%
