Intense AI use still rare among eurozone firms, ECB researchers find

[FRANKFURT] Only a small fraction of eurozone firms use artificial intelligence intensely and they tend to be small, young, service-oriented companies, leaving plenty of room for diffusion, a European Central Bank blog post said on Wednesday.

The vast majority of firms now say they have been using AI but economists have been debating just how intense this use is and whether it can yield the sort of efficiency gains that are relevant on a macroeconomic level.

Surveying more than 5,000 companies across the bloc, the ECB found that over 70 per cent report using AI and much of the rest plan to start this year. But use is moderate or infrequent and only 7 per cent use AI intensely, the survey found.

“The intensive use that drives transformation and generates macroeconomic gains remains rare,” the authors, all ECB researchers, said, in a post that does not necessarily represent the ECB’s views.

Intense use is skewed towards smaller companies with large firms clearly lagging behind, the survey results showed. Younger firms also used AI more intensely than older companies and use was skewed towards high-tech, knowledge-intensive services.

“Firms at an early stage of adoption often cite cost reductions and improvements in operational efficiency as their main reasons for using it,” the blog said. “Intensive users are more frequently motivated by growth and innovation.”

SEE ALSO

SK Hynix seeks 45.45 trillion won with US listing to fund AI boom

ByteDance seeks US$20 billion in its largest-ever offshore loan

The Business Times turns 50

Five decades of milestones and moments that shaped Singapore’s success story - told through our headlines.

Explore BT50»

Firms tend to invest in AI when their competitors do, succumbing to peer pressure, and intensive users spend heavily on customised solutions that go well beyond just purchasing licences, the blog said. REUTERS