Introduction
In recent years, when the topic of artificial intelligence (AI) comes up, the first things that come to mind are the "super-giant model of the United States" and "China's rapid growth." On the other hand, Europe is often perceived as being "lagging behind due to strict regulations" and "unable to keep up with technological innovation."
However, when we actually examine the data from the field, we find some surprising truths. While Europe may be lagging behind in the AI "development race," it is the most enthusiastic region in the world when it comes to the speed and depth of "utilizing" AI in business.
In particular, data shows that Europe is far ahead of the United States in the manufacturing sector. This article explains why Europe is making progress in AI adoption, the strategies behind it, specific examples, and the lessons we can learn from it in business.
Lag in development, but world leader in "application"? Europe's chosen AI strategy
First, let's clarify the current situation in Europe. Europe is indeed struggling in the development race for cutting-edge AI models (foundation models).
Looking at the number of major AI models developed in 2025, the US had 50, China 30, and South Korea 5, while Europe had only 3. Furthermore, Europe lacks "hyperscalers" (large-scale cloud providers) with massive data centers to run AI. In terms of the scale of capital investment, the US and China are overwhelmingly superior.
However, the important thing here is to distinguish between "selling AI (development)" and "using AI (application)."
The essential purpose of AI is not to create the models themselves, but to use them to increase productivity and generate profits. Europe has already joined the ranks of the world's leading runners in this "practical application" stage.
Europe's overwhelming strength and examples in manufacturing compared to the United States
Why is Europe so far ahead in the use of AI? The reason lies in Europe's vast industrial base and the proactive attitude of its engineers on the ground. Specifically, the following three points can be cited:
Point 1: Europe has the highest utilization rate of generative AI in the world.
According to a survey conducted by Microsoft, the average percentage of people using generative AI (such as chatbots and text-writing AI), taking into account the population ratio of each country, is:Europe ranks first in the world with 32%.In contrast, the figures are 28% for the United States and 16% for China.
A survey by the Peter Research Center in the United States also showed that the US has the highest percentage of people who feel "anxious" about generative AI, while Europe has shown a relatively positive attitude. The fact that the barrier of "new technology is scary" is low is accelerating its adoption.
Point 2: In manufacturing, "we are 40 points ahead of the United States."
The biggest gap is in the manufacturing sector. According to a survey by the European Investment Bank (EIB), the percentage of European manufacturing companies that utilize AI technologies such as big data and machine learning is48%It goes up to [location].
Surprisingly, this percentage is small in the US manufacturing sector.28%While the U.S. is actively using AI in finance and IT services, Europe is overwhelmingly leading in the implementation of AI in actual manufacturing processes.
Point 3: Established giants are leading the way.
In Europe, not only new AI companies but also established large corporations are actively adopting AI. For example, the French electronics giant Schneider Electric already has nearly 100 AI applications in operation and expects to reduce costs by approximately 73 billion yen (approximately 400 million euros) by 2026.
Furthermore, German machinery giant Siemens has been using AI in its factories for over five years, improving productivity in more than 100 areas. In addition, Danish beer company Carlsberg is using AI to streamline employee training and propose customized sales strategies for customers.
European companies are also actively forming partnerships with AI venture companies. Companies that create AI models and manufacturing companies that use that AI are working together to compete in the speed of practical application.
Regulatory and economic barriers, and lessons for business.
While Europe's success stories are impressive, they haven't always been smooth sailing. It's important to be aware of the risks and challenges facing AI adoption in Europe.
EU AI Regulations: Caught Between Safety and Speed
The European Union (EU) has enacted an "AI law," establishing strict standards for AI safety and data protection. While this is a great initiative to protect users, there are concerns that the regulations may be too complex and slow down the adoption of the technology.
In fact, in November 2025, the EU decided to postpone the implementation of some of the regulations after hearing opinions from businesses. In the business world, there are calls for clarification on "what is allowed and what is prohibited."
The dilemma of economic stagnation and investment
Another challenge is the economic environment. European companies are struggling to grow due to fierce competition from Chinese companies and protectionist trade policies in the United States. With sales declining, they may be tempted to cut investments in order to secure short-term profits rather than invest in AI for the long term.
However, stopping AI investment now would lead to a further loss of competitiveness in the long run. Management needs to reaffirm that AI is not just a "cost reduction" but an "essential investment for maintaining competitiveness."
The "sense of work" that we can learn
There are lessons we can learn in business from European examples.
it is"Instead of waiting for the perfect tool, make the most of what you have now."is.
Europe didn't create the world's smartest AI model from scratch, but it succeeded in integrating available AI into its manufacturing sites and business processes. What's needed to ride the wave of AI isn't creating cutting-edge technology, but how quickly you can apply AI to "on-the-ground challenges."
While we remain uncertain and wait to see what happens, pioneers have already achieved results. What's important in AI utilization is not the courage to be at the forefront of technology, but rather a pragmatic approach to improving everyday tasks, even just a little.
Summary
The course of technological advancements is always driven not by "who created it," but by "who mastered its use." The current state of AI utilization in Europe clearly illustrates this point.
The invention of the steam engine originated in Britain, but it was the skilled workers on the factory floor who improved the machines and transformed factory operations that propelled it to the Industrial Revolution. The same is true for AI. Cutting-edge models developed in Silicon Valley in the United States certainly possess astonishing capabilities. However, it is not the algorithm designers who unlock its full potential, but the wisdom of the individuals working on the production lines and at their office desks.
European companies chose not to participate in the model development race. Instead, they steadily integrated "AI as a tool" onto their long-established manufacturing foundation and the foundation of the Nordic digital society. As a result, they have surpassed the United States in terms of tangible benefits such as increased productivity.
We sometimes get so caught up in the "cutting edge" of technology that we overlook the "practical application" that's right in front of us. However, what's important in business isn't inventing a new wheel faster than anyone else. It's about how quickly and how far we can reach our destination using the wheels we already have.
The future brought about by AI will not be monopolized by the winners of the development race. It will be shaped by people who fearlessly and steadily "use" the technology to solve real-world problems. Europe's approach is not merely an example from another country; it may be the most necessary compass pointing in the direction of modern business, which is caught between technology and practical benefits.
