Artificial intelligence across the European Union: Influencing factors and potential (No. 537) © Photo Credit: Ivan - stock.adobe.com

Artificial intelligence across the European Union: Influencing factors and potential (No. 537)

The study explores why Northern European and Benelux countries are frontrunners in the field of AI, while Germany remains slightly above the EU average, despite the existence of a shared digital single market. Quantitative analyses and qualitative comparisons reveal structural differences in education, labor market, and digital infrastructure – and identify potential approaches for Germany.

The study explores how European countries compare in using artificial intelligence (AI), identifies structural differences between AI leaders and midfield countries (including Germany), and suggests potential approaches for German AI policy.

In the quantitative analysis, significant differences between selected AI frontrunners (Denmark, Belgium, Netherlands) and the AI midfield (Germany, Sweden, Austria) were identified based on extensive Eurostat data from 2021, 2023 and 2024. This involves evaluating 270 AI variables and over 130,000 socio-economic, infrastructural and education-related variables using principal component analysis, partial least squares regression and stratified permutation tests with FDR correction. A subsequent qualitative analysis examines the strategies and programs of the leading countries in areas where they perform significantly better. 

The results reveal systematic differences in four areas: First, the leading countries exhibit higher participation rates in formal and non-formal training, particularly in ICT training across all age cohorts. Second, they combine lower average weekly working hours with higher labour productivity, indicating more efficient labour market structures. Third, companies in these countries benefit from better access to high-performance, widely available digital infrastructure. Fourth, coherent national strategies, practical training programmes and tight collaboration between government, industry and educational institutions are accelerating the digital transformation. Germany's focus areas for action, as identified by the study, include the systematic integration of continuing education into the digital strategy, the strengthening of professional mobility, and the implementation of binding concepts for digital infrastructure. These measures are designed to anchor AI implementation as part of comprehensive transformation strategies.