AI in SMEs and Mid-Sized Companies: could this be Europe’s answer?

China is also widening its technological lead over Europe, as evidenced by the recent promises of DeepSeek. In the face of these gaps, generative and agentic artificial intelligence (AI) could become a strategic lever to boost our competitiveness and transform our businesses. However, rather than aiming to develop our own AI technologies, a “third way” would be to make AI a reality for our mid-sized companies and SMEs.

AI promises spectacular gains and could generate an additional 0.5% to 1.5% of annual GDP growth over a decade. A study by Odoxa and Artefact reveals that AI could boost productivity by 10% to 15% across all sectors, from services to industries. Beyond the numbers, the challenge is structural: the European economy largely relies on mid-sized companies and SMEs.

AI promises spectacular gains and could generate an additional 0.5% to 1.5% of annual GDP growth over a decade. A study by Odoxa and Artefact reveals that AI could boost productivity by 10% to 15% across all sectors, from services to industries. Beyond the numbers, the challenge is structural: the European economy largely relies on mid-sized companies and SMEs.

However, adopting AI remains a challenge for these businesses, even though they play a key role in the economic landscape. SMEs account for 99% of all companies, employ 100 million people, and generate 60% of total added value. In the United States, SMEs contribute only 46% of GDP. The rise of generative AI and intelligent agents is therefore a game changer for SMEs. By massively deploying AI technologies, Mid-sized companies and SMEs can reinvent their internal processes, accelerate innovation cycles, reduce costs, and compete on a global scale.

These new technologies are now more accessible, allowing businesses to quickly adopt solutions that multiply their efficiency. With AI agents, a company with 10 employees can achieve the work of a team of 100 or even 1,000. From research and innovation to operations management, the benefits are immense. Despite these opportunities, Europe is facing a worrying lag. According to Bpifrance, only 30% to 40% of French companies use or develop AI solutions, compared to 59% in the United States. This gap, which is set to widen with the Stargate project, reflects a lack of awareness, investment, and support for European businesses.

So far, European efforts have primarily focused on supply: building data centers, strengthening computing capacities, and investing in infrastructure. These initiatives are necessary but insufficient. It is now essential to trigger a real surge in demand and invest massively in the adoption of AI technologies by SMEs and mid-sized companies. This means providing concrete support, such as reducing financial barriers to AI adoption, offering tailored training programs for business leaders and employees, and facilitating deployment.

Time is running out: the United States continues to accelerate, and other economies, such as China, are making massive investments. Europe has a unique asset—its vast network of SMEs and ETIs, which can become the driving force behind its economic growth. Generative and agentic AI presents a historic opportunity for Europe to bridge the gap, emerge as a technology leader, and reclaim its position on the global economic stage. Let’s take action to transform our businesses into global innovation leaders through artificial intelligence.

By Vincent Luciani