The data was collected through an online survey of 214 employers representing small and medium-sized enterprises (SMEs) and startups operating across 12 European Union countries and the UK.
The survey targeted business owners, founders, and senior managers responsible for workforce planning, hiring, or technology adoption.
Respondents came from a mix of sectors - most prominently retail, professional services, manufacturing, logistics, hospitality, and technology - reflecting the diverse composition of Europe’s SME economy. Responses were gathered anonymously to encourage candid perspectives. No large corporations were included in the sample, ensuring that the results capture the realities and constraints of smaller employers navigating AI adoption with limited budgets and internal capacity.
05
How is AI perceived
by employers in Europe?
The survey of 214 small and medium-sized employers and startup leaders across Europe paints a picture of measured optimism toward artificial intelligence, tempered by resource constraints, skills shortages, and uncertainty about implementation.
Most SMEs see AI not as a job killer but as a productivity enhancer: nearly four in five expect AI to moderately or significantly increase efficiency, while only a small minority (6%) foresee any drop in output. However, when it comes to workforce size, the outlook is more cautious, with 42% expecting headcount to remain stable, 28% anticipate reductions, and just 18% believe AI could lead to job growth. This reflects a pragmatic view among smaller firms that AI’s immediate impact will come through improved productivity and cost savings, not expansion.
Hiring and skills emerge as central concerns. While 70% believe AI can make recruitment more targeted or effective, most admit that finding candidates with relevant AI skills remains difficult or very difficult (74%). Confidence in their existing workforce is also limited: just under half feel their staff are well-equipped to work with AI tools. This highlights a widening skills gap between aspiration and readiness, especially in SMEs without structured training programs. Encouragingly, around two-thirds of employers say they are likely to invest in AI training within the next year, signalling a growing awareness that talent, not technology alone, will determine the success of AI integration.
Motivations and concerns are closely linked: most employers cite improving productivity and reducing costs as their main drivers, while the cost of implementation and lack of staff expertise are the top barriers. Ethical or data-related concerns are acknowledged but not yet dominant. Interestingly, more than 60% believe that adopting AI could make their company more attractive to potential hires - an early sign that AI-readiness is becoming a differentiator in Europe’s competitive labour market.
Overall, the findings suggest that Europe’s SMEs are at an inflection point: they view AI as a strategic necessity but face practical constraints in funding, training, and implementation. Their optimism is grounded but conditional, and AI’s promise will only be realised if small firms can access affordable tools, tailored training, and trusted guidance to navigate this transformation.
Marcin Sojka
Business Development Director at SALES HR
Poland
How is AI currently impacting the recruitment industry from your perspective?
AI already accelerates sourcing and early screening, improving candidate-role matching and reducing time-to-hire. At the same time, it shifts recruiters toward more analytical and strategic decision-making. Personally I see AI in recruitment as a strategic advantage with real risks attached. Its value depends on organizational maturity, not the technology alone.
Has AI made recruitment processes (e.g. sourcing, screening, matching) easier, more complex, or both?
It is both easier and more complex.Operationally, it is easier, the time required for repetitive tasks - sourcing, CV screening, initial matching, and transactional communication - is significantly reduced, but the human factor is still essential for conversations and building relationships with candidates.Final decisions and potential assessment will remain human-led.
How prepared do you think employers are to adapt their hiring practices to AI-driven changes?
Some companies are implementing the necessary changes, especially in the initial stages of recruitment. We are still in an adaptation phase, without widespread adoption, but this will be an inevitable direction.
What new skills or profiles are you seeing increased demand for as a result of AI adoption?
Demand is increasing for profiles combining digital and business skills, such as HR analytics, AI product owners, and technical recruiters. Critical thinking and data literacy are becoming essential.
Do you believe AI can help improve access to employment for diverse or underserved talent - or does it risk reinforcing existing biases?
AI can improve inclusion, but only with conscious design and regular algorithm audits. Without that, it risks reinforcing existing inequalities.
Sorina Uleia
Co-founder & CEO at Recycllux
Romania
How do you expect AI to impact your overall workforce size in the next three years?
AI will not reduce our workforce; it enables us to scale impact faster with a lean team. We expect moderate growth, particularly within our internal AI team, as we develop a biodiversity and ecosystem impact forecasting layer.
What impact do you believe AI will have on employee productivity?
AI significantly increases productivity by automating data-heavy tasks such as analysis, reporting, and proposal writing. For example, our internal proposal-writing agent has reduced time by roughly 50%.
Do you believe AI will help your company hire more effectively?
Not in our case. Hiring decisions remain highly human-driven. I personally review CVs and conduct interviews to ensure strong alignment with our mission and values.
How confident are you that your current employees have the right skills to work effectively with AI tools?
Moderately confident. Our team is highly adaptable, but continuous learning and continuous experiments is essential as AI tools evolve rapidly.
Do you believe AI will make your company more attractive to new hires?
Yes, particularly the fact that we actively develop AI. Mission-driven talent is attracted to companies that build meaningful AI.