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Speed of AI Implementation Outpaces Strategic Frameworks in Europe

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As AI has proliferated, Europe has been embracing it through innovation and regulation. The continent is focused on advancing AI technology while ensuring ethical standards, transparency and privacy. For example, the EU has introduced initiatives like the Digital Strategy and the European AI Act to create a balanced approach that fosters AI research and application, while mitigating risks related to safety, data privacy and human rights.

At the same time, Europe is investing heavily in AI research and development. To back that statement, Digitate, a provider of AI-powered solutions for IT and business operations, recently released a study, "The Race to Outpace: How AI and Automation are Driving European Enterprises Across the Finish Line," that showed 92% of businesses have already adopted these technologies in the last two years.

According to the report, businesses have invested heavily in AI and automation, with an average spend of €103.4 million over the past two years. More than half of the organizations have allocated up to €295 million to these technologies. And the investments are paying off — 86% of companies report a ROI of about €154.7 million.

The report highlighted several key benefits with time savings topping the list (60% of respondents reporting reduced time spent on manual tasks). Greater operational efficiency and improved productivity followed as major positive outcomes. These results reflect the immediate advantages of deploying AI and automation in business operations.

When it comes to which areas have seen the most AI and automation deployment, IT operations are leading the way. Around 80% of businesses are using automation in their IT departments, while 62% are utilizing AI in this space. IT operations are often the first area to benefit from these tools, as automation and AI can streamline processes and improve service delivery.

Looking ahead, a shift towards more advanced technologies is on the horizon. According to the study, nearly all organizations plan to update their cloud strategies within the next two to three years, with over half opting for a multi-cloud approach. Companies also expect a shift toward autonomous operations in the coming years. Currently, only 7% of businesses use automation systems that learn and adapt with minimal human involvement, but this number is set to soar, with projections estimating that 20% of organizations will embrace these systems by 2028.

However, the journey toward automation and AI integration isn’t without challenges, and the report identified several key obstacles. The top two barriers are budget constraints and a lack of technical skills, each cited by 29% of respondents. Data collection and management issues also represent a significant roadblock, with 28% of companies facing difficulties in this area. Even more concerning, nearly half of organizations reported that their current AI and automation implementations still require more human intervention than they would prefer.

With that said, businesses are optimistic about the future of AI and automation. More than three-fourths of respondents plan to implement more AI or automation technologies within the next two years. Among the areas earmarked for future deployment are IT operations, cybersecurity and network monitoring.

"European enterprises clearly recognize the transformative potential of AI and automation," said Ritu Dubey, Head of New Business Sales and Market Development at Digitate. "However, the research indicates that many organizations are implementing these technologies on a departmental basis rather than as part of an integrated vision. To maximize the value of these substantial investments, enterprises need to develop more comprehensive strategies."

Adding to Dubey’s statement, it is safe to say that AI and automation will continue to reshape the European business landscape. No surprise there, really. But to fully capitalize on these changes, organizations will need to evolve from isolated, department-specific implementations to company-wide, integrated strategies that allow these technologies to flourish across all areas of the business.




Edited by Alex Passett
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