A new study reveals a growing paradox among Europe’s small and medium-sized enterprises (SMEs): while many are rushing to adopt artificial intelligence, they’re neglecting the fundamental digital tools that form the foundation of true digital transformation.
According to research by French fintech company Qonto, 46% of European SMEs now use AI tools such as ChatGPT on a daily basis. However, only a small percentage have implemented essential digital systems like online accounting, video conferencing, data analytics, or document management. The result, Qonto warns, is a widening digital divide that could undermine the long-term competitiveness of Europe’s economic backbone.
The study, conducted with research firm Appinio, surveyed 1,600 senior decision-makers across France, Germany, Italy, and Spain. It found that two in five businesses feel unprepared for digital transformation—a figure that translates to roughly 10 million companies across the continent.
The gap is most visible at the national level: 76% of German SMEs report feeling well-equipped for digital change, while nearly half of French companies admit they are struggling. This uneven progress threatens to leave many firms behind as larger corporations steadily invest in both AI and core digital infrastructure.
“While AI offers exciting opportunities, European businesses must first build strong digital foundations to sustain innovation and growth,” said Alexandre Prot, Qonto’s CEO.
The report calls for targeted measures to help close Europe’s digital divide—reducing bureaucracy in Germany, addressing skill shortages in Spain, and tackling cultural barriers to change in France. Without these interventions, experts warn that Europe’s smaller firms risk being outpaced by better-prepared competitors leveraging AI not just for innovation, but for sweeping efficiency gains across entire industries.
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