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Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2025) 1.5 Q3
Journal Citation IndicatorTM (2025) 0.25 Q4
Received: 2026-01-11  |  Accepted: 2026-03-24  |  Published: 2026-06-30

Title

Current trends in the adoption of AI technologies in small and medium-sized enterprises in the European Union


Abstract

This study analyses the rapid expansion of artificial intelligence (AI) adoption among small and medium-sized enterprises (SMEs) in the EU-27 during 2021–2025 and examines whether this diffusion leads to convergence or persistent disparities across countries. Using harmonised Eurostat indicators on enterprises employing at least one AI technology by size class (10–49 and 50–249 employees), the study combines descriptive analysis with σ-convergence (coefficient of variation) and β-convergence regressions linking average log growth to initial adoption levels. Club convergence analysis is additionally applied to identify heterogeneous dynamics across groups of countries. The results show rapid growth in SME AI adoption: the share of small enterprises using AI increased from 6.1% to 17.0%, while among medium-sized enterprises it rose from 12.6% to 30.4%. Relative dispersion declined (CV: 0.69→0.52 for small firms; 0.62→0.45 for medium-sized firms), indicating σ-convergence, while β-convergence is statistically significant in both segments (β = −0.0815, p < 0.01; β = −0.0872, p < 0.001). However, club convergence analysis shows that convergence is concentrated among high-adoption economies, whereas low-adoption countries display increasing internal divergence. These findings suggest that accelerated AI diffusion alone does not ensure balanced digital transformation, highlighting the importance of targeted SME capability-building in lagging ecosystems.


Keywords

artificial intelligence (AI) technologies, Small and Medium-sized Enterprises (SMEs), AI adoption, adoption gap, convergence, divergence, European Union (EU)


JEL classifications

O33 , L26 , C23 , O52


URI

http://jssidoi.org/jesi/article/6646


DOI


Pages

152-169


Funding

The article has been developed and funded within the Daugavpils University's (Latvia) research project No 14-95/2026/17 "AI-Based Enterprise Transformation and Its Impact on Managerial Decision Quality".

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Zhang, Chenqing
Trinity College Dublin, Dublin, Ireland https://www.tcd.ie
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Čižo, Edmunds
Daugavpils University, Daugavpils, Latvia https://du.lv
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Yang, Zhongdong
Web3 Capital Pte. Ltd., Singapore, Singapore https://web3.capital
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Danileviča, Alina
Daugavpils University, Daugavpils, Latvia https://du.lv
EKA University of Applied Sciences, Riga, Latvia https://www.augstskola.lv
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Boļakova, Ieva
Daugavpils University, Daugavpils, Latvia https://du.lv
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Komarova, Vera
Daugavpils University, Daugavpils, Latvia https://du.lv
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Qi, Jiangang
Zhongnan University of Economics and Law, Wuhan, China https://www.zuel.edu.cn
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Journal title

Entrepreneurship and Sustainability Issues

Volume

13


Number

4


Issue date

June 2026


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 657  |  PDF downloads: 648

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