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.
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