AI Adoption in European SMEs: Opportunities, Challenges, and the Path Forward

Artificial intelligence is no longer a futuristic concept — it’s becoming a central driver of innovation across Europe’s business landscape. While large enterprises have traditionally led the charge in adopting AI technologies, small and medium-sized enterprises (SMEs) are increasingly stepping into the digital arena, exploring how intelligent tools can enhance productivity, competitiveness, and long-term growth.

AI Adoption Is Growing Among Europe’s SMEs

Recent EU data shows a clear trend:

  • 11% of small enterprises (10–49 employees)
  • 21% of medium-sized enterprises (50–249 employees)

are now using at least one AI technology. These applications range from automated customer service and predictive analytics to workflow optimization and smarter business decision-making.

For many SMEs, AI offers a chance to streamline operations, reduce costs, and innovate in ways that were previously out of reach.

The Barriers Slowing Down AI Integration

Despite the upward trajectory, adoption is far from universal. Many SMEs still face considerable challenges when trying to implement AI solutions:

1. High Implementation Costs

AI tools, data systems, and integration services often require substantial investment. For smaller companies with tighter budgets, the upfront cost can be prohibitive.

2. Limited Digital Skills

A lack of in-house technical expertise is one of the most cited barriers. Without staff trained in data science, machine learning, or digital transformation, many SMEs struggle to adopt and maintain AI systems.

3. Insufficient Infrastructure

AI requires reliable data, modern IT frameworks, and often cloud-based systems. Not all SMEs have the digital foundations needed to support advanced technologies.

4. Uncertainty Around ROI

Many companies hesitate to invest in AI because they’re unsure how quickly — or significantly — it will deliver returns. For SMEs operating with limited resources, this uncertainty can lead to postponing adoption.

Why Supporting SMEs Matters for Europe’s Digital Future

Europe’s economic landscape relies heavily on SMEs, which make up 99% of all businesses across the EU. Their ability to innovate sustainably will play a crucial role in shaping Europe’s competitiveness in the global digital economy.

If SMEs lag in AI adoption, the gap between small and large companies will widen — affecting productivity, innovation, and regional development.

How NewCo Supports SME Digital Transformation

At NewCo, we recognize the immense potential AI holds for small and medium-sized businesses. Our mission is to help bridge the digital divide by providing:

  • Accessible training programs to build digital and AI skills
  • Practical tools and guidance for step-by-step AI integration
  • Partnership opportunities that reduce the cost and complexity of adoption
  • Awareness initiatives that help SMEs understand the ROI and long-term value of AI

By empowering SMEs with knowledge and resources, we aim to make AI adoption not only achievable but sustainable.

Looking Ahead

AI presents both a challenge and an opportunity for Europe’s SMEs. With the right support systems in place — and a commitment to inclusive digital growth — SMEs can become powerful drivers of innovation, job creation, and competitiveness.

Blockchain in 2025: From Crypto to Core Business — How NewCo Is Positioned for the Next Wave of Innovation

Blockchain technology has evolved far beyond its early association with cryptocurrencies, and as we move through 2025, its true potential is finally being recognized across global industries. What was once viewed as an experimental innovation has grown into a foundational element of modern digital infrastructure. Today, businesses in finance, healthcare, manufacturing, the public sector, and countless other domains are adopting blockchain to ensure transparency, security, efficiency, and trust in the systems they rely on. At NewCo, we see this shift not as a prediction for the future but as a transformation already underway—and one we are excited to be part of.

The acceleration of blockchain adoption in 2025 stems from several major developments. The technology has matured significantly, supported by more interoperable networks that allow different blockchains to communicate and exchange data seamlessly. What used to be isolated digital ecosystems are now interconnected platforms capable of supporting complex, multi-industry applications. Businesses are moving from theoretical proofs-of-concept to full-scale, enterprise-wide implementations, demonstrating real-world value in everything from secure patient records to transparent supply-chain tracking.

Another major force driving this evolution is the growing convergence between blockchain and artificial intelligence. As AI becomes more influential in analytics, automation, and decision-making, blockchain provides a trustworthy backbone that ensures the accuracy and integrity of the data powering those systems. This combination enables smarter automation, verifiable insights, improved identity protection, and entirely new possibilities such as decentralized AI marketplaces. Innovations in energy-efficient blockchain protocols have also addressed earlier concerns about sustainability, making modern networks faster, greener, and more scalable than ever before. Regulatory clarity across international markets has further strengthened confidence in blockchain, encouraging businesses to invest in long-term strategies rather than short-term experiments.

For businesses, this moment is critical. Blockchain is no longer an emerging technology waiting for wider adoption—it is becoming an essential component of the digital landscape. Companies that embrace these technologies now will be better positioned to thrive in a world where secure data exchange, privacy, automation, and decentralization are simply expected. Those who wait risk falling behind as markets move toward more transparent and intelligent systems.

At NewCo, we have always believed in using technology to empower organizations and enhance the way the world works. That belief has guided our commitment to exploring the powerful intersection of AI and blockchain. Our work focuses on creating solutions that use blockchain to safeguard data, strengthen supply-chain accountability, enable secure digital identities, automate complex processes through smart contracts, and build trustworthy systems for AI-driven insights. By merging the intelligence of artificial intelligence with the reliability of blockchain, NewCo is helping to define a future in which decision-making becomes not only more efficient but also inherently more trustworthy.

The opportunities ahead are extraordinary. Blockchain is not a passing trend; it is a deep and lasting shift in how digital systems will operate for decades to come. As decentralized networks and intelligent technologies reshape industries, NewCo is proud to be among the companies driving this momentum. With a sense of excitement and purpose, we are ready to help shape the next generation of innovation—and we believe the best is yet to come.

Is the EU Rethinking Its AI Rules? What It Means for Tech SMEs

The EU’s flagship AI Act was designed to make Europe a leader in trustworthy artificial intelligence. But new discussions in Brussels suggest that parts of the law may need adjusting to avoid placing unnecessary pressure on smaller companies.

Policymakers and industry leaders warn that some rules—especially those affecting general-purpose AI models—could be too broad, making compliance harder for SMEs than for large global tech firms. There is growing recognition that regulation must protect citizens without blocking innovation.

For tech SMEs, this debate is important. A more balanced approach would mean greater room to develop practical, sector-specific AI solutions while still meeting European standards of trust and safety. Companies that build transparency, responsible data use and user-focused design into their products will be well positioned—regardless of how the final adjustments to the Act unfold.

The message from the evolving EU discussion is clear: Europe wants strong AI governance, but it also wants its tech ecosystem to grow. For SMEs, this moment offers a chance to show that responsible innovation can be a competitive advantage.

Europe’s Blockchain Ecosystem Moves from Experimentation to Real-World Implementation

Europe’s blockchain landscape has entered a new phase of maturity, shifting from early experimentation toward practical, real-world applications that are reshaping industries and public governance. This transition was the central theme of the European Blockchain Convention 2025, held in Barcelona earlier this month, where more than 5,000 participants and 250 speakers — including policymakers, innovators, and civil society representatives — gathered to assess how blockchain can deliver value beyond finance.

Once associated primarily with cryptocurrencies, blockchain technology is now increasingly being used to power secure data systems, digital identities, transparent supply chains, and public-sector innovation. At the convention, experts highlighted how Europe’s regulatory leadership — particularly through the Markets in Crypto-Assets (MiCA) Regulation and emerging frameworks on digital identity and tokenised assets — is enabling safe, large-scale adoption across multiple sectors.

Speakers emphasised that blockchain’s potential extends well beyond fintech. New pilot projects in energy, mobility, and social governance are already underway. For example, blockchain is being tested to track renewable energy production and trade certificates, manage mobility credits in cities, and support transparent disbursement of development funds. Governments and regional authorities are also exploring how distributed ledger technology can support secure record-keeping and reduce administrative costs.

For NGOs and regional development actors, this evolution is especially relevant. The technology’s ability to enhance transparency, trace transactions, and verify impact can transform how projects are funded, implemented, and reported. Blockchain can also support digital identity systems that improve access to services for marginalised populations, and token-based community initiatives that strengthen local participation in sustainability efforts.

At the same time, experts cautioned that adoption must remain inclusive and ethical, ensuring that smaller organisations and communities are not left behind in the digital transition. Collaboration between governments, civil society, and industry will be crucial to shaping blockchain solutions that serve the public good rather than purely private interests.

Europe’s Tech Supply Chain Gets a Boost: Breakthrough in Rare-Earth Recycling from E-Waste

In a major stride toward sustainable technology and resource autonomy, researchers in Europe have developed a groundbreaking method to recover rare-earth elements (REEs) from electronic waste with unprecedented efficiency.

Rare-earth elements are critical components in modern technologies — from wind turbines and electric vehicles to hard drives and mobile devices. Despite their importance, less than 1 % of these materials are currently recycled, because conventional extraction from e-waste is costly, complex and energy-intensive.

The new method, developed by a team led at ETH Zurich, uses a specially-designed extractant that alters the solubility properties of key REEs such as europium, allowing the precise separation of valuable materials from old electronics like fluorescent lamps and discarded devices. The innovation significantly reduces chemical and energy inputs compared to traditional recycling processes.

This development arrives at a strategic moment. The Critical Raw Materials Act, adopted by the European Union, sets ambitious targets through 2030: mining 10% of the bloc’s needs domestically, processing 40%, and recycling 25%. The new recycling technique represents a practical step toward meeting the recycling component — helping reduce Europe’s dependence on external supply chains that are heavily concentrated in Asia.

For regional development and tech-ecosystem actors, the implications are significant. First: this opens opportunities for new circular-economy business models and regional investment in e-waste recycling infrastructure. Second: it presents a chance to build local industry around material recovery, manufacturing, and high-value recycling jobs — aligning with both ecosystem growth and sustainability goals. Third: it strengthens resilience and technological sovereignty — increasingly vital as clean-energy and defence industries expand.

In our region, this means we can explore partnerships with research institutions, waste-management firms, and industrial players to harness this emerging capability. By developing pilot projects, providing training pathways, and mobilising local innovation, we can position our region as a contributor to the next-generation materials economy.

EU Reconsiders Timeline for Landmark AI Act Amid Industry Pressure

Europe’s long-anticipated AI Act, hailed as the world’s first comprehensive framework for regulating artificial intelligence, may see parts of its implementation delayed as EU institutions weigh the balance between innovation and oversight.

The European Commission and several member states are reportedly discussing whether to postpone certain obligations within the Act, particularly those concerning high-risk AI systems. The move follows growing pressure from major technology firms and research institutions warning that overly stringent rules could slow innovation, stifle startups, and make Europe less competitive in the global AI race.

The AI Act, formally adopted earlier this year, sets out a risk-based approach to AI regulation, classifying systems from “minimal risk” to “unacceptable risk.” It imposes transparency, testing, and accountability requirements on developers of high-risk systems, such as those used in healthcare, transport, law enforcement, and recruitment. It also prohibits applications deemed incompatible with fundamental rights — such as social scoring or real-time facial recognition in public spaces.

However, with the pace of AI innovation accelerating faster than expected, European policymakers are under pressure to fine-tune the timing and scope of these obligations. Industry leaders argue that smaller developers could struggle to meet complex compliance requirements without additional technical support and funding. Others warn that delaying implementation risks undermining public trust in AI — the very foundation the law was designed to secure.

Despite the debate, EU officials reaffirm that the core principles of the AI Act remain intact: protecting citizens, ensuring safety, and promoting trustworthy innovation. The current discussion focuses not on whether to regulate, but on how to introduce the rules in a way that fosters innovation while preserving accountability.

For Europe’s tech ecosystem, the coming months will be crucial. If adjustments are made, they could define how Europe balances its dual ambitions: to be a global leader in ethical AI and a competitive hub for technological advancement.

Save the Date – WiseME Info Event on 21 November 2025

NewCo A.E. is pleased to announce that, as part of the WiseME project, we will host an informative event on 21 November 2025. The session will present the project’s progress, tools, and upcoming activities, bringing together educators, stakeholders, and partners engaged in strengthening digital literacy and combating misinformation.

Breakthrough in Light-Waves: Topological Materials Enable New Terahertz Frequencies

Scientists have made a remarkable advance in manipulating light by embedding exotic “topological insulator” materials into nanostructured resonators to generate both even and odd terahertz (THz) frequencies through a process called high-order harmonic generation. This development brings us one step closer to devices that operate at terahertz speeds — frequencies between microwaves and infrared — potentially powering ultra-fast wireless communications, high-resolution sensors and next-generation imaging technologies.

The key lies in these topological insulators: materials that behave as insulators in their bulk but conduct electricity on their surface in a robust way. By integrating them into resonators at nanometre scale, the research team was able to drive conversion of input light into a spectrum of terahertz frequencies, including ones that were previously difficult to access. The ability to generate both even and odd harmonics means greater control over the light signal, which is critical for applications where precision is paramount.

What makes this relevant for tech companies and innovation ecosystems is the potential ripple-effect across several fields. For instance, future wireless systems may exploit terahertz frequencies for ultra-high data-rate transmission; imaging systems might use them for non-invasive scanning or security; sensor systems in industry and infrastructure could become far more sensitive and compact. Moreover, turning advanced physics into practical devices will involve new materials, new manufacturing methods and new system integration — opportunities both for research-intensive firms and for regional clusters seeking to build advantage.

For regions and organisations focused on innovation-led development, this breakthrough signals that we are entering another wave of “materials + photonic systems” that will underpin what comes after Moore’s Law. It suggests that investment in specialised photonics infrastructure, nanofabrication capabilities, and local partnerships between academia and industry could pay off. In short: the frontier is shifting, and local ecosystems that align with it can capture value.

EU Moves to Tighten Oversight of High-Risk AI Systems

Europe is entering a new era of AI governance as the European Union prepares to roll out detailed rules on how companies must handle incidents involving high-risk artificial intelligence systems. The initiative marks one of the first real enforcement steps under the EU’s new AI Act, which is set to reshape how artificial intelligence is developed, deployed, and monitored across the region.

Under the new guidelines, companies that operate or provide high-risk AI systems will be required to report any serious incidents — including technical failures, harmful outcomes, or disruptions to essential services — within strict deadlines. The rules are designed to ensure transparency and rapid accountability whenever AI systems cause or contribute to significant harm, whether directly or indirectly.

The scope of what counts as a “serious incident” is broad. It includes not only obvious physical or financial damage but also cases where an AI decision leads to unfair treatment, reputational harm, or systemic disruption. Companies will need to maintain detailed documentation of system performance, establish incident-response procedures, and be ready to cooperate with regulators if an investigation is launched.

For Europe’s tech industry, this shift signals a new balance between innovation and responsibility. Businesses will need to adapt their internal compliance systems, train staff on AI governance, and integrate ethical risk management into the product lifecycle. Far from being a bureaucratic hurdle, this new framework could help build trust among users and markets — strengthening Europe’s position as a leader in safe, transparent, and human-centered artificial intelligence.

European Tech Surge: A €3 B AI Wave and Clean-Energy Breakthroughs Reshape the Market

The European tech ecosystem has entered a bold new phase. Recent data show that during the third quarter of 2025, investments into artificial intelligence in Europe doubled to nearly €3 billion, while funding into energy-tech rose by about 70 % to €1.1 billion.This surge comes as startups across the continent shift from pure-play applications to building “sovereign” solutions — that is, systems designed to give Europe and European firms strategic independence in digital infrastructure, AI platforms, and clean energy systems.

For tech companies operating in Europe, this moment presents both opportunity and imperative. On the one hand, the rising tide of investment means more partner-and-customer interest, more innovation funding, and more appetite to adopt bold technologies. On the other hand, the shift toward strategic tech sovereignty and deep-tech (AI, quantum, energy transition) means the bar is higher — differentiation, domain-expertise, and system-level thinking are increasingly expected. The era of “just another app startup” is giving way to “platforms, systems and ecosystems.”

Our company is well positioned to ride this wave. With our core strengths in [insert your domain — e.g., “AI-driven enterprise software” or “clean energy digital platforms”], we can leverage the favorable funding climate, align our product roadmap with the trend toward strategic tech stacks, and engage more deeply with customers who now see digital innovation as central to their resilience and competitive positioning. This requires action: enhancing our messaging around technology sovereignty, investing more in domain-specific use-cases (not just horizontal ones), and strengthening our ecosystem partnerships — all while ensuring we stay agile amid shifting investment and policy priorities.