EU firms lead on green investment, match US in AI adoption, EIB survey finds

European companies are maintaining strong investment momentum in the green and digital transitions despite global economic uncertainty, according to the 2025 European Investment Bank Investment Survey (EIBIS).

The survey, released today in Washington, DC during the IMF and World Bank annual meetings, found that 92% of EU firms are taking action to cut greenhouse gas emissions and lower energy costs. The findings are based on responses from more than 12,000 EU firms and 800 US companies surveyed between April and July 2025.

Investment levels in the European Union remain high, with 86% of companies continuing to invest, though at a slower pace than in previous years. Firms cited uncertainty (83%) and a shortage of skilled labour (79%) as key barriers, while 75% identified energy costs as a major challenge.

EIB Chief Economist Debora Revoltella said that, while uncertainty persists, firms are adapting: “There is a clear commitment to invest in digitalisation and green initiatives, which are crucial for maintaining competitiveness in the evolving global market.”

The 2025 EIBIS also shows that European firms are keeping pace with the United States in adopting generative artificial intelligence. Some 37% of EU businesses now use generative AI, compared with 36% of US firms. However, the survey notes that European companies apply AI across fewer business functions, with 55% using it in more than two activities, compared with 81% in the US.

Trade concerns are rising, with 77% of US firms and 48% of EU firms viewing customs and tariffs as major obstacles. Meanwhile, European firms continue to favour replacement investments over expansion, with just over a quarter (26%) planning to increase capacity in the next three years, compared with 37% of US firms.

Policy support reaches 16% of investing EU firms, mainly targeting the green transition (41%) and innovation (29%). However, 62% of European companies view the internal market as fragmented, and bureaucracy is estimated to cost small and medium-sized enterprises around 2% of turnover.

The European Investment Bank said the findings underscore both the resilience of European businesses and the need for continued policy efforts to support competitiveness, sustainability and digital transformation.