Artificial Intelligence Adoption in the European Union: A Data-Driven Cluster Analysis (2021–2024)

Costel Marian Ionașcu ()
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Costel Marian Ionașcu: Department of Economic Statistic and Informatics, Faculty of Economics and Business Administration, University of Craiova, 200585 Craiova, Romania

Economies, 2025, vol. 13, issue 5, 1-38

Abstract: The adoption of artificial intelligence by enterprises in the EU countries increased significantly between 2021 and 2024, but the recorded values were uneven and very small. This study analyzed the main characteristics of the artificial intelligence adoption process, its dynamics and patterns using principal component analysis and K-means clustering. The results highlighted a shift from using technologies for process automation to more advanced ones like natural language generation. The process was extended and gradually covered almost all business areas. The lack of relevant expertise, high costs and gaps in regulation of the development and use of artificial intelligence are the important barriers identified by 2024. The cluster analysis of EU countries highlighted the existence of two permanent clusters, one containing the leading countries and one containing the countries lagging behind, showing a large gap between them. The increasing dependence on externally developed solutions has characterized a maturing market for artificial intelligence. The equitable adoption of artificial intelligence at the level of EU countries must be based on specific workforce training, investments in infrastructure, financial incentives and, last but not least, on clear regulations. Only in this way can the gap in this area at the EU level be reduced.

Keywords: artificial intelligence; AI adoption; AI measuring index; K-means clustering; principal component analysis; AI adoption barriers; AI regulatory challenges; AI development strategies; EU AI policies (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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