AI makes big European companies more productive, but not small ones
What happened
AI adoption increases labor productivity by 4% in European firms, but only for medium and large companies. This means AI helps workers do their jobs faster, rather than replacing them, but the benefits are not spread evenly.
Why it matters
Everyone assumed AI would boost productivity across the board. It turns out, only big companies with money for software and training see the gains. This means smaller businesses will fall further behind, making it harder for them to compete.
The signal
Watch for new government programs aimed at helping small and medium-sized businesses invest in AI infrastructure and training, or for a widening gap in productivity between large and small firms in Europe.