Everyone is talking about the boom in the Artificial Intelligence business. Forecasts for the year ahead estimate the world AI business will grow 30 to 40 percent.
While the lion’s share of that growth will inevitably be in the US, there are some hot spots in Europe currently attracting both startups and big business. Generative AI, that is, technology that produces text or video or that enables faster product development, is where all the big tech investment is going today. Globally, it has been valued at more than €130 billion and rising. In 2023, the number of newly founded AI companies grew by more than 40 percent, and it is expected to continue speeding up, adding €500 billion to the European economy.
Best European countries for AI business include Sweden & Spain
A recent study in the US highlights 6 European countries among 14 of the best in the world for setting up an AI business. The report ranked the best countries where to create an AI startup based on factors such as the number of newly funded AI companies, total private investment, research and development facilities (R&D), finance for startups, and revenue growth.
Sweden topped the ranking for the most attractive European country to start up an AI business, followed by Switzerland, despite not having the friendliest business environment for startups. Spain was highly rated for its business environment, number 7 in the world, just after Germany, where the finance for startups was considered good.
Generative AI could add €521 billion to the European economy in 2025, according to global management consulting company McKinsey & Company. To put that into context, that is equal to about one-tenth of the German GDP.
