Website Banner Blog   2024 07 02 T084015

GenAI's Rise in Europe: Growth, Funding, and Challenges

Back to Insights
Blog Img

GenAI's Rise in Europe: Growth, Funding, and Challenges

​It’s kicking off in the European Deep Tech space, reflected in the steep uptick of GenAI – the perpetual overperformer when it comes to market growth.

According to Bloomberg, GenAI is shaping up to be a $1.3 Trillion market by 2032, and it’s easy to see why – it’s becoming a business essential.  

While AI accounts for 18% of Europe’s VC funding, the spread is highly concentrated, with France, Britain, and Germany attracting 77% of all European AI funding between them. (Dealroom, 2024).

As France leads Europe on VC funding ($2.29 Bn raised), the UK lead in the sheer volume of GenAI startups – of the 221 startups analysed in a recent Accel study, 30% were from the UK,14% in Germany, and 11% in France (Reuters, 2024).

Barriers to Implementation

That said, some studies – including BCG’s AI at Work: Friend or Foe Study – rank the UK among the least confident countries for implementing new AI technology. According to the report, over 4 in 5 senior managers in the UK claimed to be using GenAI, and yet only 1 in 5 frontline workers said they were receiving the training needed to use it.

This disconnect mirrors a wider challenge facing many of today’s businesses: the pace of technological advancement is outstripping the organisational capacity to implement the innovations.

From increasingly powerful consumer technology to enterprise-level applications that unlock new avenues of creativity, GenAI continues to disrupt at pace.

Will the upcoming regulatory landscape get in the way of progress? Will it level the playing field? Will it protect consumers and corporations from an AI-enabled threat landscape in cyberspace?

From finance to healthcare, innovators everywhere will need to prepare for more changes as GenAI becomes impossible to ignore. Talent, timing, and funding are the key parts of the puzzle – we’re keen to hear how you’re striking the balance. If you’d like to feature your stories and insights on the Leadership Lab podcast, contact the team today, we’d love to know more: