European SMBs lead peers in AI execution, study says

European small and medium-sized businesses are ahead of their global peers in AI execution, according to research commissioned by SAS and IDC. Europe was the only region where execution ranked as the strongest dimension of AI readiness.

The study surveyed more than 1,600 SMB leaders across 28 countries, including 640 in Europe, and found that most businesses worldwide remain in the early stages of AI maturity.

Across the global sample, 70% of SMBs were classified as experimental or opportunistic in their approach to AI. Only 9% said they had fully embedded AI into strategy, operations and decision-making.

The gap between interest and implementation was especially clear among the least mature organisations. Among businesses classed as experimental, 90% reported having no formal AI strategy.

Europe stood apart in how companies were moving AI into day-to-day use. North America scored strongest on planning, building and enabling, but not on deployment, suggesting European firms were further ahead in putting AI into operational processes.

Execution gap

The findings point to several obstacles holding back broader adoption. Nearly half of SMBs, 45%, said their data remained scattered across systems with no clear ownership, while 46% said AI tools still operated in isolation rather than through connected workflows.

Governance, risk and compliance were the top AI priority for 26% of SMB leaders surveyed. At the same time, 24% identified uncertainty around compliance, security and risk management as the biggest barrier to execution.

The research used an AI Readiness Index to assess organisations across four areas: planning, building, enabling and executing. It grouped businesses into four stages of maturity: experimental, opportunistic, structured and integrated.

The categories show how far companies have moved from early trials to wider organisational use. The results suggest many SMBs are still running disconnected pilot projects rather than integrating AI across the business.

John Carey, Senior Vice President of Global Channels at SAS, said: "Organisations treating governance as a foundation rather than an obstacle are often the ones best positioned to execute. The findings suggest European SMBs are taking a more operational approach to AI adoption - focusing not just on experimentation, but on putting the right structures in place to scale AI effectively. Their stronger execution performance may also reflect greater preparedness for evolving regulatory environments such as the EU AI Act."

The survey also highlighted the pressure on smaller companies with limited IT resources as they assess readiness and manage organisational change. For many, data structure, ownership and workflow integration appear to be as significant as the choice of AI tools.

Maturity stages

The distinction between experimentation and integration is central to the report's findings. Businesses in the experimental stage are testing AI in limited ways, while those at the integrated stage have incorporated it into broader decision-making and operations.

The low share of integrated organisations shows how early the market remains. Despite sustained interest in AI, relatively few SMBs have turned that interest into coordinated business practice.

Daniel-Zoe Jimenez, Vice President, Research at IDC, said: "To actually make something of their AI strategy, SMBs need to move from disconnected pilots to true alignment of their data, people and resources. Experimenting with the technology is one thing. Deploying it strategically and sustainably is quite another."

IDC has also made an interactive AI readiness calculator available as part of the work, aimed at helping SMBs benchmark their maturity and identify gaps in structure and planning.

The figures underline a broader market pattern: while enthusiasm for AI remains widespread, execution still depends on governance, connected systems and a clear operating model. For European SMBs, progress appears to depend less on ambition than on turning isolated trials into routine practice.