Despite widespread recognition of artificial intelligence's potential, a significant portion of European businesses remain hesitant to adopt AI tools. New data from Eurostat's 2025 survey sheds light on the persistent barriers, revealing that a lack of technical expertise, concerns over data privacy, and legal uncertainty are the primary obstacles.
The findings come as the European Union seeks to streamline its AI and data protection regulations through initiatives like the AI Omnibus and Digital Omnibus, aiming to reduce administrative burdens and foster competitiveness. The data will inform discussions on the upcoming Multiannual Financial Framework for 2028–2032.
Expertise Shortage Tops the List
Among medium-sized enterprises (50–249 employees), 10.51% cite a lack of technical expertise as the main reason for not using AI. For larger companies (over 250 employees), the figure is 10.32%. This gap is particularly acute in countries that otherwise lead in AI adoption: 15.44% of Danish firms, 14.63% of German companies, and 13.99% of Finnish businesses acknowledge this shortfall. Denmark and Finland normally top AI adoption charts, making this self-criticism notable.
Technical issues, such as incompatibility with existing equipment or software, affect 6.38% of medium-sized firms, with Finnish (11.82%), Maltese (9.44%), and German (9.42%) businesses most affected. Meanwhile, 6.51% of medium-sized companies cite a lack of necessary data, with Finns (10.31%) and Germans (9.12%) again leading.
Privacy and Legal Uncertainty
Data privacy and protection concerns are the second-most-cited barrier. Among medium-sized firms, 7.95% worry about violations, while 9.31% of larger companies share this concern. Uncertainty about legal consequences is also significant: 7.51% of medium-sized and 8.12% of larger firms point to this. These figures underscore the tension between leveraging AI and complying with the EU's General Data Protection Regulation (GDPR) and the evolving AI Act.
Cost is a relatively minor factor, cited by only 5.67% of medium-sized and 5.51% of larger companies. Portuguese businesses lead on cost concerns at 9.56%. Ethical considerations are even less of a deterrent, with just 3.45% of medium-sized and 3.36% of larger firms citing them.
Strikingly, only 2.09% of medium-sized and 1.55% of larger companies believe AI tools are not useful for their business. This suggests that most firms recognise AI's value but are unable to overcome the barriers without clearer guidance and support from policymakers.
The data highlights a need for targeted measures, such as upskilling programmes and clearer legal frameworks. A similar survey focusing on data- and AI-intensive businesses could help shape future legislative priorities. As the EU retools its AI Act with extended deadlines and a narrower scope for high-risk systems, these insights are crucial for ensuring that regulation enables rather than hinders innovation.
