EU AI Landscape Booms: Profit Surge, but Data and Ethics Concerns Persist
The European AI landscape is evolving rapidly. A survey by EY reveals that the average company size in Europe is 482 employees, with Austrian companies slightly larger at 537. Meanwhile, the EU is introducing the AI Act to regulate the sector.
Data protection (30%), ethical issues (27%), and job displacement (25%) are the top concerns regarding AI. However, 43% of respondents report increased productivity due to AI, with men and managers leading this trend. Companies are seeing an average profit boost of 6.24 million euros from AI.
Industries like Private Equity, Advanced Manufacturing, Sports, and Agriculture are particularly benefiting. Austrian companies have seen a rise in AI-driven profit and cost reduction, from 34% to 47% since last year. Despite these gains, only 14% of companies are fully prepared to harness AI's potential, according to a Kyndryl study.
The EU AI Act aims to standardize regulations for AI development and use. Positive financial effects from AI have increased, with 56% of companies reporting such impacts, up from 45% last year. As AI integration grows, so do concerns about data protection and ethical issues, highlighting the need for balanced progress in the sector.
