The European AI innovation opportunity

AI offers a pivotal opportunity to accelerate innovation by fostering new businesses, increasing productivity, and advancing scientific discovery. In the AI era, European businesses must embrace a mindset of innovation and leverage cutting-edge technology to remain competitive.

An Implement Consulting Group study, developed in partnership with Google, examines how AI can accelerate innovation in Europe. It builds on last year’s findings that estimated an 8% (EUR 1.2 trillion) GDP boost from AI adoption in ten years. It provides insights into strategic AI initiatives that can revitalise Europe's economic landscape and outlines opportunities across three dimensions:

Key findings of the study:

• Producing AI: Expanding AI production in Europe represents a EUR 200 billion opportunity by 2034, with 75% in applications and services. Europe’s industrial base and its 19% share of global AI application funding give it a strong position.
• Inventing with AI: AI could unlock EUR 250 billion annually in R&D innovation by 2034, doubling solution quality and raising efficiency by 10–20%. Europe faces weaker R&D returns than the US, but AI can reverse this trend.
• Commercialising AI: Europe needs more innovative digital businesses to commercialise the AI innovation potential, estimated to drive 30-40% of EU’s 450 billion AI innovation opportunity. These businesses are critical for creating, diffusing, and accelerating transformative AI innovations across key sectors.

The EUR 450 billion AI innovation potential is both a stepping stone and an amplifier for the EUR 1.2 trillion opportunity from generative AI adoption. Developing AI models and applications is the stepping stone, while AI-driven acceleration of research will amplify economic gains over the long term.