AI adoption lags in Europe compared to the US, and it's not just about the tech.

AI use is much lower in Europe than in the US, and the gap is widening. This difference is partly due to who works where and what kinds of companies exist, but also because European companies are less likely to encourage employees to use AI tools.

This paper shows that the gap in AI adoption between the US and Europe is significant and growing. It's not just about having the technology; it's about how companies manage their workers. European firms that actively encourage AI use see productivity gains, similar to US firms. This suggests that policy or management practices, not just access to AI, are key to realizing its benefits. Without changes, Europe risks falling further behind in productivity growth.