EY European AI Barometer 2024

Switzerland is leading the AI transformation as it unfolds in Europe across sectors and countries – but the journey is far from over.

Artificial intelligence (AI) is reshaping the way we live and work – but the transformation is far from over. We wanted to understand where Europe stands on its journey with this new technology. While financial gain is certainly a motivating factor in AI adoption, the results of the EY European AI Barometer 2024 call for a shift in the narrative surrounding AI benefits to include people factors.

AI deployment to date has been most successful in Switzerland, where 81% of managers have had a positive experience with the technology by saving costs, increasing profits – or both. The country is followed by Spain (60%) and Italy (58%), both of which scored well above the European average of 45%. Respondents in Austria (35%), the Netherlands and Germany (both 34%) are less impressed.

By function, the use cases in which AI has been operationalized vary widely, from streamlining supply chain operations to optimizing marketing strategies and enhancing customer experiences. At present, organizations are seeing the greatest benefits in IT (35%), followed closely by marketing (30%) and cybersecurity (27%). Interestingly, legal and compliance departments currently see little scope for AI implementation. That said, with little more than initial inroads made so far in AI implementation and operationalization, most eyes are still fixed on future iterations of the technology.

Prepared for the future

Employees in private equity (71%), financial services (66%), energy, and advanced manufacturing and mobility (both 62%) are most confident of their employers’ ability to pursue the AI transformation journey. Most employees in Switzerland (57%) expect AI to be a top investment priority in the coming year, followed by Spain (54%). Prospects for AI investment are bleaker in Germany, where only 25% of respondents expect AI to be prioritized, and Austria with a mere 22%.

Overall, employees in Switzerland (58%) are most confident about the potential of AI implementation in their company. On average in the European countries surveyed, people see employee qualification (33%) as one of the top investment priorities for their organization when it comes to AI.

The Swiss are most proactive when it comes to self-learning opportunities, with 60% engaged in self-education activities. Employees in Italy (55%) and Spain (54%) – both of which also reported high levels of financial success thanks to AI – also show a high level of self-learning engagement. Employees in Germany are least likely to be engaged in self-education activities (37%), indicating a clear need to sensitize the workforce there as to the importance of AI skills for the future of work and their career prospects.

One in three respondents in Italy (34%) expects that the new technology will replace human labor entirely or on a large scale. The figure is similarly high in Portugal (32%). In contrast, the proportion is significantly lower among respondents in the German-speaking countries: Germany (14%), Switzerland (16%) and Austria (17%).

Upskilling as part of change management

In acknowledging the fears of their people around the impact of AI, it is important to also emphasize its potential as a powerful tool in the hands of skilled and well-trained employees. Companies can alleviate fears and position themselves for the future by adopting an active role in training and upskilling their people.

According to our survey results, not enough respondents are currently satisfied with the level of AI training they get at work. Switzerland leads the way, albeit at a low level with just 36% saying their employer is doing enough. Employers in other countries need to do a lot better, most notably in Portugal, where only 14% of employees are satisfied with the current level of AI training they are receiving. Most employees want live training and workshops (43%), followed by online courses (38%).

Upskilling and reskilling initiatives are of paramount importance to mitigate any negative consequences of AI on employment. Organizations must invest in training programs to equip their workforce with the necessary competencies to thrive in an AI-driven economy. Additionally, fostering a culture of lifelong learning is essential to ensure that employees remain adaptable and resilient in the face of technological disruption.