A study by S&P Global Market Intelligence shows that European SMEs are lagging behind other regions when it comes to targeted data strategy and AI.

According to a survey of more than 2,300 European SMB companies conducted by S&P Global Market Intelligence in partnership with AWS, European SMBs lag behind other regions in developing a targeted data strategy and using AI. Less than 20 percent consider themselves data-driven in strategic decision-making. In terms of AI maturity, highly data-driven companies are more advanced in adopting and using AI than less data-driven companies, although Europe performs worse here than other regions.

Delay in data strategy

The research shows how European SMEs use data in their decision-making and how advanced they are in data analytics, data strategy maturity and AI adoption. Only half of the companies that describe themselves as “highly data-driven” are in the most mature stage of data strategy development. For less data-driven companies, this falls to less than a quarter. More than half of these companies (54%) are still in the early stages. Europe lags behind regions such as Latin America (77%), North America (74%) and Southeast Asia (66%) in implementing a mature data strategy.

Targeted investments in technology, people and processes are critical to a mature data strategy. Highly data-driven European SMEs invest more in technology (83%), people (53%) and processes (75%) than less advanced companies. These investments are essential to increase data-driven use and improve competitiveness.

Room for improvement in AI

In terms of AI maturity, highly data-driven companies are more advanced in adopting and using AI than less data-driven companies. Nevertheless, Europe performs significantly worse than other regions. Only 23 percent of highly data-driven SMEs in Europe are at an advanced stage of AI maturity.

“The results of this study underscore the importance of a strong focus on data and AI and encourage companies in the Netherlands and Belgium to embrace these technologies,” said Danielle Gorlick, General Manager Benelux at AWS.