Artificial intelligence is reshaping Europe’s economic landscape at a remarkable pace, with new research revealing that AI investments across the continent now exceed $80 billion.
According to a November 2025 report by iGaming software provider Digitain, Sweden leads all European nations in AI’s contribution to national GDP, signalling a meaningful shift in how countries are preparing for an increasingly automated and data-driven future.
The study assessed AI investment across 27 European nations, analysing five years of spending and projecting economic impact through 2025. It examined three core metrics – the absolute level of AI investment, the share of GDP directed toward AI and the percentage change in national AI adoption.
These indicators together provide a fairly nuanced picture of which countries are prioritising AI development and which countries are at risk of falling behind.
Sweden Sets the Pace for Europe
Sweden has emerged as Europe’s most AI-forward economy, with artificial intelligence expected to represent 0.63% of its GDP by the end of 2025 – the highest proportion on the continent, and not by a small margin. This level of commitment translates into $35.1 billion in AI investment, driven by a combination and balance of public-sector initiatives and a fast-maturing private AI ecosystem.
The country is not only investing heavily but also adopting AI at speed. Sweden’s AI usage is projected to increase by 140% by the end of 2025, highlighting broad integration across industry, public services and consumer technology. This combination of financial commitment and rapid adoption places Sweden in a category of its own, as both a regional and global benchmark for AI maturity.
Northern Europe Dominates the Rankings
Unsurprisingly, Finland ranks second, with AI projected to account for 0.42% of its GDP by 2025. Despite having a significantly smaller economy than Sweden, Finland has committed $8.4 billion to AI. Its usage of AI tools is set to rise 59% this year, reflecting steady but less explosive adoption.
Croatia takes third place, surprising many given the comparatively modest size of its economy. With AI expected to represent 0.23% of GDP by the end of 2025, Croatian investment, which is now totalling $859.7 million. indicates a deliberate national strategy to strengthen technological innovation. AI usage is also projected to rise by more than 50%, suggesting strong local appetite for automation and intelligent systems.
Greece follows in fourth place. Despite economic challenges over the last decade, Greece has invested more than $500 million in artificial intelligence, and AI now accounts for 0.15% of its GDP. Adoption is accelerating quickly, with usage expected to grow 150% by the end of this year. This makes Greece one of Europe’s fastest-moving AI adopters, alongside Serbia.
The fact that the top four European countries making waves in AI include two of the wealthiest countries (with the strongest economies) as well as two countries with some of the weakest economies (by European standards) shows that successful AI adoption and integration is about a lot more than just money. Indeed, it’s a hopeful and ecouraging indicator for the rest of the world.
Western Europe’s Powerhouses Are Spending Big, But Also Investing Less as a Share of GDP
France rounds out the top five, with AI expected to make up 0.11% of its economy by the end of 2025.
In absolute numbers, France is one of Europe’s largest AI investors, having committed $16.39 billion. AI usage is rising sharply as well, with a projected 70% increase this year.
Germany and the Netherlands also appear in the top ten, unsurprisingly, though their AI investments represent a smaller share of GDP: 0.098% for Germany and 0.109% for the Netherlands.
While both countries have invested heavily in absolute terms – $13.16 billion and $4.47 billion respectively – their larger economies mean that AI makes up a smaller proportion of total output.
Denmark, Belgium and Serbia complete the top ten. Serbia is particularly notable for its extraordinary 286% increase in AI usage – the fastest adoption rate in Europe – though its total investment remains comparatively low at $46.54 million.
Ultimately, big investment is certainly helpful, but it’s not, by any means, the only factor involved in AI usage, adoption and, ultimately, success.
A Continent at a Crossroads?
While Europe has collectively invested more than $80 billion in AI, the report warns that this may not be enough to remain competitive against global superpowers.
Ani Mkrtchyan, Chief Sales Officer at Digitain, emphasised this point, noting that the global AI market, currently valued at around $240 billion, is projected to reach $1.2 trillion by 2030. But, the United States and China currently control approximately 87% of that market.
Mkrtchyan cautions that European nations risk becoming technology consumers rather than creators if they fail to accelerate investment. The gap, she suggests, is widening: “If European countries want a meaningful piece of that $1.2 trillion pie, they need to spend more. The window to catch up is closing fast.”
As Sweden, Finland and a handful of other leaders push forward, the challenge for Europe now is ensuring that momentum spreads across the continent. The next five years will determine whether Europe becomes a global AI innovator – orm, an importer of technologies built elsewhere.
