EIB: Inside EU Firms’ AI Investments Amid Regulatory Shifts

European Union companies are continuing to invest in the green and digital transitions, demonstrating a desire for resilience against global volatility, according to the latest European Investment Bank Investment Survey (EIBIS).

The survey that spoke to over 12,000 EU firms and more than 800 US companies between April and July 2025 found that businesses are directly investing in resources to cut greenhouse gas emissions alongside advanced forms of AI.

The findings from the European Investment Bank (EIB), which were released during the annual meetings of the International Monetary Fund and the World Bank Group, show that businesses across Europe are adopting advanced forms of AI at a similar pace to their US counterparts.

According to the survey, 37% of EU firms are deploying Gen AI compared to 36% in the US.

This highlights an opportunity to generate value through AI deployment for sourcing internal process automation, supplier risk monitoring and market intelligence.

AI deployment and digitalisation

While initial adoption rates are similar, the research finds a divergence in the application of AI.

European firms appear to be lagging in deploying AI in areas such as customer service, internal processes, marketing and human resources.

The data shows that 81% of US businesses using AI do so in more than two activities compared with 55% of European companies.

This could suggest that while European firms are willing to invest in AI technology, they may not yet be harnessing its full potential across a broader range of business functions.

Amid a general investment slowdown on both sides of the Atlantic, EU companies are showing resilience, with 86% continuing to invest.

They are, however, exercising caution due to ongoing political, regulatory and economic uncertainties.

“While uncertainty weighs heavily on firms, they are so far weathering the shock,” says Debora Revoltella, Chief Economist at the EIB.

“There is a clear commitment to invest in digitalisation and green initiatives, which are crucial for maintaining competitiveness in the evolving global market. The focus on the green transition is evident, with a considerable portion of investment directed towards sustainable practices.”

Green transition investment

The commitment to green initiatives is substantial, with the EIBIS survey discovering that 92% of EU companies are investing directly in resources that cut greenhouse gas emissions. This dual focus on green and digital investment indicates a strategic direction for many European businesses.

Policy support is also playing a role in these investment decisions. Around 16% of companies making investments receive government assistance through grants or favourable financing terms.

According to the report, 61% of this EU policy support is directed towards specific goals, with 41% dedicated to green transition initiatives and 29% focused on innovation.

Addressing investment challenges

The 2025 EIBIS demonstrates that major investment challenges persist in Europe. A high percentage of EU businesses cite uncertainty (83%) and a shortage of skilled labour (79%) as major investment barriers.

The shortage of skilled labour is a particularly critical point for the technology sector and could impede the broader deployment of AI.

Furthermore, energy costs are an impediment for 75% of European businesses, signalling the importance of accelerating renewable energy deployment to enhance competitiveness.

These challenges may be influencing future growth plans. The survey suggests EU firms will prioritise replacement investments over capacity expansion.

Around a quarter (26%) are planning to expand operations over the next three years, versus 37% of US firms with similar intentions.

While fewer European firms are facing financial constraints compared to previous years, external pressures remain.

Growing concerns over customs and tariff changes are impacting businesses on both sides of the Atlantic, with 77% of US firms viewing these changes as a major obstacle compared to 48% of EU companies.