Only a small fraction of eurozone companies use artificial intelligence (AI) intensively, primarily among small, young, service-oriented firms, leaving significant room for the technology’s expansion, according to a European Central Bank (ECB) blog post on Wednesday.
A vast majority of companies now report using AI, but economists are debating the intensity of this usage and whether it can yield significant macroeconomic efficiency gains. Having surveyed over 5,000 companies across the bloc, the ECB found that over 70% report using AI, with a substantial portion of the remainder planning to start this year. However, usage is moderate or infrequent, with only 7% of companies using AI intensively, the survey showed.
“Intensive use, which drives transformation and generates macroeconomic benefits, remains rare,” the authors of the post, all ECB researchers, noted, emphasizing that the publication does not necessarily reflect the views of the ECB.
Characteristics of intensive users
Intensive use of AI is primarily observed in smaller companies, while larger firms are noticeably lagging, the survey results indicated. Younger companies also utilize AI more intensively than their older counterparts, with applications concentrated in high-tech, knowledge-intensive services.
“Firms in the early stages of adoption often cite cost reduction and improved operational efficiency as the main reasons for using AI.” “Intensive users are more often motivated by growth and innovation.”
Investments and competitive pressure
Companies tend to invest in AI when their competitors do, succumbing to peer pressure. Intensive users spend significant amounts on custom solutions that extend well beyond simple license purchases, the post noted.
Source: Yahoo