Generative AI in Small and Medium-Sized Enterprises: Europe’s Path to Competitiveness

Study

24.04.2026

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As part of the “Generative AI for Small and Medium-sized Enterprises” technology program, a new study has been published examining the prospects for generative artificial intelligence in Europe. The study focuses on how the European Union’s strategic guidelines—particularly those outlined in the AI Continent Action Plan—interact with operational funding programs such as Digital Europe and Horizon Europe.

The study shows that artificial intelligence is a key competitive factor for small and medium-sized enterprises (SMEs). The European Union supports the further development of these companies through two funding programs:

While the Digital Europe Program offers SMEs access to infrastructure and resources such as consulting, testing, and computing centers and promotes the development of AI and digital skills in Europe, Horizon Europe, for example, supports innovation projects and connects companies with research and industry. Together, this creates an AI funding ecosystem that allows companies to strengthen their competitiveness in the long term.

Staying Competitive Amid Technological Change

In the coming years, the European Union will further expand its programs and initiatives in the field of artificial intelligence, opening up additional opportunities for small and medium-sized enterprises to participate in projects, utilize funding, and gain access to European structures. An early start pays off: Companies that take action early benefit from current funding opportunities and can build on them with future programs; at the same time, an early start reduces the risk of falling behind as technological change progresses rapidly.

The study was commissioned by the Federal Ministry of Research, Technology, and Space (BMFTR) and conducted by ECDF Professor Daniel Fürstenau and his team, including Tim Kilgus, Felix Haas, and Sophie Bachmann.

To the full study