EU companies lagging behind in digital transformation - EC

(ANSA) - ROME, JUL 3 - European companies are lagging behind in efforts to achieve the digital transformation targets set for 2030 by the European Union's Digital Decade Policy Program (DDPP), according to the second report on the State of the Digital Decade published by the European Commission on July 2.
    Under current trends, only 64% of European businesses will be using cloud, 50% big data and just 17% artificial intelligence (AI) by 2030, the Commission noted in its report on the Digital Decade, the EU's strategic program with targets set for 2030 on high-quality connectivity, skills, enterprises and digital public services.
    In the report, Italy ranked below the European average of 8% recorded in 2023 with only 5% of companies using new technology and with a limited dynamic.
    The expansion of enterprises in Italy remained difficult due to a generally weak ecosystem and limited risk capital investments, the report said.
    Moreover, only seven unicorn companies were registered last year, or businesses estimated to be worth over one billion dollars on the market, even though they are not listed on the stock exchange.
    Such companies represented less than 3% of all unicorns in the EU, according to the Commission.
    Overall, the Commission reported "limited progress" in the adoption of digital technologies by European companies.
    Referring to cloud, the report registered a 7% increase - well below the 9% growth rate necessary to reach the target.
    "No significant improvement" was reported in the adoption of AI while only 32% of European enterprises has taken up data analysis.
    The report also highlighted that "the digitalization of SMEs (small and medium-sized enterprises) is progressing too slowly and in an uneven way across the EU", with an annual increase of just 2.5%, or half the growth rate necessary to achieve the target.
    The ecosystem of startups remains underdeveloped, despite some progress, the report said.
    Although the number of unicorn companies grew 5.6%, the EU only hosts 13% of such businesses, against China's 387 and the United States' 1,539, partly due to the lack of private capital.
    In order to promote the digitalization of the entrepreneurial sector, the Commission said it is key to incentivize the adoption of innovative digital tools by SMEs, in particular cloud and AI, as well as mobilize further private investments in high-growth startups.
    This is crucial to maintain Europe's competitiveness with regards to data-driven innovation, efficiency and growth, the Commission concluded. (ANSA).