Europe and AI: A Concerning Gap

Imagine a world where business decisions are driven by automated algorithms, manufacturing lines are run by self-learning machines instead of people, and customer service issues are resolved by AI in seconds. This is not a distant future—it is the present. While Asia and the United States are taking bold steps forward in this technological revolution, the European Union—and with it Hungary—remains worryingly behind.

According to Mindstream’s latest research, the adoption rate of AI in the EU is just 13.5%. In contrast, several Asian countries already exceed 50%. India, for instance, reports 59%, the United Arab Emirates 58%, and Singapore 53%. If Europe fails to act, its businesses risk falling into serious competitive disadvantage, missing out on the opportunities that AI offers.

Source: Mindstream

AI as an Economic Engine – Why Should Companies Care?

Many still believe AI is just a novelty, but this is a misconception. Artificial intelligence is not a toy—it is the key to efficiency and competitiveness, especially for businesses. A Hungarian company that introduces AI-powered automation can dramatically reduce administrative burdens, streamline customer service, and generate more accurate financial forecasts.

Take, for example, a local e-commerce firm. With AI, it can predict customer demand, deliver personalized offers, and automate logistics. The result: significant cost savings and increased efficiency. Those who opt out are not just falling behind their competitors—they are actively forfeiting growth opportunities and measurable gains that could show up directly in their bottom line.

The Investment and Innovation Deficit

The engine of AI development is investment and innovation. Today, the majority of AI-related investments flow to the US and Asia. As a result, the best researchers and engineers gravitate toward these regions, where ecosystems are stronger and funding more accessible.

In Hungary and across the EU, targeted support for AI-driven innovation remains limited. Most SMEs cannot afford to fund their own R&D, while in Asia and the US, countless startups are being built around AI. Without investment, Europe risks not only falling behind but also becoming increasingly dependent on foreign technologies.

Labor Market Challenges – Threat or Opportunity?

Many fear AI will take away jobs, but the reality is more nuanced. AI is transforming the labor market rather than destroying it. Repetitive, low-value tasks can indeed be automated, but in parallel, new roles requiring higher expertise are being created.

In Hungary, many companies struggle with labor shortages, particularly in administration, customer service, and sales. For them, AI doesn’t necessarily mean layoffs—it means freeing up employees to focus on higher-value tasks while algorithms take over repetitive work. For example, a chatbot can manage customer service 24/7, while human employees handle more complex cases.

Regulation as a Barrier

The EU’s strict data protection regulations—such as GDPR—often hinder AI development and adoption. While Asian countries and the US offer more flexible regulatory environments, European firms face heavy bureaucratic barriers. For an SME, anonymizing data for AI training can be a major challenge, while Chinese or American companies face far fewer restrictions.

How Can Europe—and Hungary—Catch Up?

AI offers enormous potential, but Europe—and especially Hungarian SMEs—must act if they do not want to fall irreversibly behind. The following measures are crucial:

Targeted AI funding: National and EU-level financing should prioritize AI-driven developments that provide real competitive advantage for businesses.
AI mentorship for SMEs: Not every company needs its own research lab. Expert advisory programs and training could help smaller firms adopt AI effectively.
Simplified regulation: A friendlier legal environment is essential for AI, especially regarding data handling and GDPR compliance.
Education and training: AI is not only a technology issue—employees must learn to use the new tools as well.

What Can Hungarian Businesses Do Now?

The rise of artificial intelligence is unstoppable, but Hungarian companies still have the chance to benefit. Two major funding programs can support AI and digital transformation projects:

GINOP 2.1.3 – Boosting SME Innovation Capacity: This program funds process innovation, such as automation in marketing, sales, production, and management. AI-driven projects may qualify, with grants covering up to 70% of costs.
DIMOP Plus 1.2.3/A-24 – Supporting SME Digitalization: Provides HUF 3–20 million in funding, half as a non-repayable grant and half as a 0% interest loan. Eligible activities include cloud adoption, e-commerce solutions, ERP and CRM systems, and AI-powered process automation.

The Clock Is Ticking

AI will not wait for Europe, and Hungarian companies cannot afford to stand still while the rest of the world advances. Artificial intelligence is not just another trend—it is one of the most critical drivers of business success in the 21st century. The choice is in our hands: seize the opportunity, or let others define the rules of the future.