The North–South regional divide in AI adoption

Over the past two years, the proportion of European firms deploying AI has risen from 8% to 20%, indicating a significant increase in AI adoption.
Northern European countries, particularly those with large, productive firms in ICT and business services sectors, are leading AI adoption due to strong digital infrastructure and innovation capacity.
AI implementation is lower in Southern and Eastern Europe, highlighting a geographic disparity in technology uptake.
Cities within countries are showing an ‘urban AI premium’ in AI use, partly due to the higher concentration of AI-intensive ICT and business services sectors in large cities.
Business services in major cities exhibit higher AI adoption, potentially driven by advanced digital infrastructure and global networks.
In contrast, adoption trends in ICT sectors in major cities mirror national trends, suggesting competitive industry pressures as a driving factor for AI use.
Preliminary data suggest that AI is influencing productivity growth and labor market trends in regions with higher AI adoption, particularly in the ICT sector.