European companies remain confident in the potential of artificial intelligence and continue to invest in the technology despite ongoing economic and geopolitical uncertainty. According to the latest Accenture Pulse of Change study, 81 percent of business leaders plan to increase their AI investments over the next 12 months, while only 7 percent believe the market is experiencing an AI bubble.

The research, conducted among nearly 2,000 business leaders and employees from Europe’s largest organizations, shows that companies are moving beyond experimentation and are increasingly focused on achieving tangible business outcomes and faster returns on their AI investments.

“Even in a climate of uncertainty, business leaders remain convinced of AI’s potential. What has changed is the urgency to deliver results. To generate real returns on AI investments, companies must embed AI into their business strategy, establish governance mechanisms that enable AI to scale, and rethink how people work,” said Mauro Macchi, Accenture’s CEO for Europe, the Middle East and Africa.

AI is reshaping skills, not eliminating jobs

Contrary to the perception that artificial intelligence will reduce employment, the study finds that AI is reshaping roles and the skills required in the labor market. Eighty-five percent of business leaders believe AI will change the skills required for entry-level positions, while 71 percent plan to create new entry-level roles focused on collaboration between people and AI. Furthermore, more than half (52 percent) expect to increase hiring for entry-level positions as AI adoption expands.

At the same time, nearly two-thirds of employees (62 percent) say they feel secure in their jobs, up 21 percentage points from the beginning of the year. However, 52 percent believe it is becoming more difficult for young people entering the workforce to find employment because of AI.

Most employees are already experiencing the benefits of AI adoption: 77 percent say AI-powered tools have improved their productivity, while 68 percent report greater job satisfaction following the introduction of these technologies.

However, only 22 percent of business leaders say their organizations have achieved sustained, enterprise-wide business value from AI implementation. At the same time, more than half (55 percent) believe that agentic AI initiatives will deliver measurable, board-level business outcomes over the next 12 months.

The biggest challenge remains integrating AI into business strategy. One in five leaders (20 percent) identifies the lack of a clear link between AI initiatives and organizational objectives as the main barrier to achieving meaningful results.

European companies adopt a more cautious approach amid global uncertainty

Against the backdrop of geopolitical tensions and a slowing global economy, business leaders are taking a more pragmatic approach. Only 43 percent now expect revenue growth to accelerate, compared with 72 percent at the beginning of the year. Meanwhile, 72 percent anticipate higher inflation, while 68 percent expect the global economy to slow.

To strengthen resilience, nearly half of organizations (48 percent) plan to diversify their supply chains, while 52 percent are implementing operational transformation programmes to reduce the impact of price volatility and constraints in the energy sector.