As European nations ramp up artificial intelligence (AI) investments to compete on the global stage, Sweden has emerged as the continent’s clear leader, according to new research.
AI will represent 0.63% of Sweden’s economy by year’s end — the largest share among European nations — according to iGaming software provider Digitain. The research analyzed AI investments across 27 European countries, examining financial commitments from the past five years and projecting trends through 2025.
In all, AI accounted for $80 billion across European economies – a pittance when compared to the combined $110 billion in profits for Microsoft Corp., Apple Inc., Alphabet Inc.’s Google, and Amazon.com Inc. in their most recent quarters. All four companies are part of a domestic AI tidal wave.
The findings come as Europe faces mounting pressure to accelerate its AI development as it struggles to compete with dominant players U.S. and China. The global AI market, currently valued at approximately $240 billion, is projected to reach $1.2 trillion by 2030. The U.S. and China control roughly 87% of the market between them, leaving Europe scrambling to catch up.
“Europe is getting left behind,” said Ani Mkrtchyan, chief sales officer at Digitain. “If European countries want a meaningful piece of that $1.2 trillion pie, they need to spend more. The window to catch up is closing fast, and the countries that don’t move now will be buying AI technology from American and Chinese companies instead of building their own.”
Sweden’s commitment extends beyond mere percentage points. The country has invested $35.1 billion in AI development through both public and private sector initiatives, and its AI usage is projected to increase by 140% between 2023 and 2025.
Finland was runner-up. AI represented 0.42% of its $8.4 billion economy. Despite its more modest GDP, Finland’s significant investment demonstrates strong national prioritization of the technology. The country’s AI adoption is expected to grow 59% through 2025. (Nokia Corp., the country’s telecommunications giant, on Friday announced a $4 billion commitment toward AI infrastructure in the U.S.)
Smaller economies are punching above their weight. Croatia ranked third despite a considerably more modest economy than Western European nations: AI comprised 0.23% of its GDP and total investments topped $860 million.
Greece was in fourth place at 0.15% of GDP, though it leads Europe in adoption speed, with usage projected to jump 150% by 2025.
France rounded out the top five, with AI accounting for 0.11% of its economy. While the percentage appears modest, France ranks among Europe’s biggest spenders in absolute terms, investing $16.4 billion in the sector.
The report also highlighted Serbia as having the fastest AI adoption rate in Europe, with use projected to surge 286% this year. Conversely, Latvia showed the least investment activity, with total expenditure amounting to just $10 million over recent years.
The study evaluated countries based on three economic factors: total AI investment, GDP share dedicated to AI, and adoption rate changes, providing a comprehensive picture of Europe’s AI landscape as competition intensifies globally.
