A recent survey by Qonto, Europe’s leading business finance platform for SMEs and freelancers, shows the significant risks facing European small and medium-sized enterprises as they pursue AI adoption without solid digital foundations.
The research reveals that while nearly half of European SMEs (46%) are using AI tools such as ChatGPT, many have yet to fully implement essential digital systems. Only about a quarter have adopted digital accounting solutions, and less than a quarter use video conferencing platforms like Zoom. This suggests that nearly 50% of Europe’s 25 million SMEs may be prioritizing AI experimentation over the basic digital infrastructure necessary for stable and efficient operations, potentially placing themselves at a disadvantage against competitors with stronger technological foundations, according to Fintech Finance News.
Although the vast majority of SMEs acknowledge the importance of digitalization and AI, only around 62% regard it as absolutely critical to their business. This leaves a significant portion — approximately 9.5 million SMEs — treating digital transformation as less urgent, which could lead to competitive vulnerabilities.
Among the countries surveyed, Spain shows the strongest commitment to digital priorities, while France displays the lowest level of conviction, indicating potential economic challenges as more digitally advanced competitors gain ground.
Despite recognizing the importance of digital tools, 40% of SMEs do not feel well prepared for the digital transformation ahead. This includes about 10 million businesses employing millions of workers who risk falling behind.
Germany stands out as the most digitally prepared market, with over three-quarters of SMEs confident in their readiness. Conversely, France reports the highest share of businesses feeling unprepared, suggesting potential economic risks.
The study also highlights a worrying pattern: many businesses adopt advanced AI tools without foundational technologies.
Digital document management and data analytics tools are used by less than 30% of SMEs, and video conferencing remains underused. France, in particular, leads in AI adoption but lags behind in fundamental digital systems like accounting, signaling a possible focus on innovation over operational stability.
Automation is proving to be a significant productivity booster for many SMEs. Around 12% of businesses report saving more than 20 hours per week through automation — equivalent to over half a workweek — allowing more time for strategic growth activities. More than half save at least 10 hours weekly, demonstrating widespread gains in efficiency and innovation potential.
These findings underscore a critical challenge for Europe’s economic competitiveness. SMEs form the backbone of the continent’s economy, but without building robust digital infrastructures alongside AI adoption, many risk losing out to more prepared rivals.
The digital divide could deepen disparities within the single market unless policy efforts address regulatory hurdles, skills shortages, cultural barriers, and uneven digital adoption across countries.
While AI offers exciting possibilities, the success of European SMEs in the future of work will depend heavily on strengthening core digital systems to support sustainable growth and innovation.
