European SMBs lead global counterparts on AI execution, new study finds

New research reveals Europe as the only region where AI execution outpaces planning as most SMBs globally remain stuck in early stages of maturity.

European SMBs are outperforming their global counterparts when it comes to turning AI ambition into action, according to new research commissioned by SAS and IDC. While most SMBs worldwide remain in the early stages of AI maturity, Europe emerged as the only region where execution was identified as the strongest dimension of AI readiness.

By contrast, North America scored strongest across planning, building and enabling capabilities, but not deployment – suggesting European organisations may be making stronger progress in operationalising AI and embedding it into day-to-day business processes.

The findings come from AI for SMBs: Closing the Readiness‑Reality Gap, a global survey of more than 1,600 SMB leaders across 28 countries, including 640 respondents across Europe. 

The wider global picture shows many organisations are still struggling to move from experimentation to meaningful business impact. More than two-thirds (70%) of SMBs worldwide remain in either experimental (37%) or opportunistic (33%) stages of AI maturity, with disconnected initiatives and limited organisational readiness preventing progress at scale.

Only 9% of SMBs have fully embedded AI into strategy, operations and decision-making, while 90% of stage 1 (experimental) organisations report having no formal AI strategy in place.

The report identifies several operational barriers preventing SMBs from scaling AI effectively across the world:

• Nearly half (45%) of SMBs report that their data remains scattered across systems with no clear ownership.
• 46% say AI tools still operate in isolation rather than as connected workflows.
• Governance, risk and compliance for AI emerged as the top AI priority among SMB leaders (26%).
• Uncertainty around compliance, security and risk management was identified as the biggest execution barrier (24%).

John Carey, Senior Vice President of Global Channels at SAS, said:

“Organisations treating governance as a foundation rather than an obstacle are often the ones best positioned to execute. The findings suggest European SMBs are taking a more operational approach to AI adoption – focusing not just on experimentation, but on putting the right structures in place to scale AI effectively. Their stronger execution performance may also reflect greater preparedness for evolving regulatory environments such as the EU AI Act.”

“To actually make something of their AI strategy, SMBs need to move from disconnected pilots to true alignment of their data, people and resources,” said Daniel-Zoe Jimenez, Vice President, Research at IDC. “Experimenting with the technology is one thing. Deploying it strategically and sustainably is quite another.”  

A practical growth framework 

The report introduces the  AI Readiness Index, a framework for evaluating SMBs’ readiness across planning, building, enabling and executing.  As they progress across these areas, SMBs navigate four stages of maturity: Experimental, Opportunistic, Structured and Integrated.

The Index then provides a clear, diagnostic lens through which SMBs can evaluate how their organisation is progressing and map their path forward to implementing AI to meet their unique business needs. 

The research underscores the growing need for integrated AI platforms and trusted partners, particularly for SMBs with limited IT resources and greater exposure to change. 

In response to the execution barriers highlighted in the report, IDC has made an interactive available to help SMBs benchmark their own maturity. The tool allows organisations to independently evaluate their current capabilities, identify structural gaps, and access tailored recommendations based on their size and readiness level.

Dive deeper into the results: https://www.sas.com/en/offers/ai-readiness-report-for-small-and-midsize-businesses.html

About SAS

SAS is a global leader in data and AI, helping organizations make confident decisions with AI they can trust. For decades, SAS has set the standard for delivering software that drives meaningful impact, incorporating deep industry expertise, transparency, and governance. SAS gives you THE POWER TO KNOW^®