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 to nearly $730 million in France and nearly $610 million in Germany.
- In both countries, about 50% of organizations have implemented GenAI or have implemented it and created business value from it, compared to about 40% of organizations in the United Kingdom, Benelux and the Nordic region.
- The U.K. is expected to overtake Benelux in the next 12 months, doubling spending to nearly $510 million.
- Expenditures by Nordic businesses are expected to be in the range ofHighestIf 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 the large number of experiments and implementations of GenAI by European organizations, only 61 TP3T of organizations are creating business value through their GenAI use cases. France, Germany and the United Kingdom lead the region, with approximately 101 TP3T of enterprises reporting value delivered by their GenAI programs.
3. European companies are more concerned about ethics and bias, and more confident in managing and controlling GenAI
- European businesses see ethics and bias as the second most important challenge after data privacy and security. North American businesses, on the other hand, were less concerned about ethics and bias, which ranked behind issues such as data privacy, unusable data and lack of skills among the challenges.
- European companies also have more boards of directors involved in GenAI policy development, reflecting their regulatory concerns. In Europe, boards set regulations and policies at companies above 301 TP3T and have been the primary sponsor for nearly 201 TP3T.
- More than 70% of 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.”