site.btaBulgaria Lags behind in Artificial Intelligence Use, Analysis Shows

Bulgaria is at the tail-end of Europe in terms of the share of companies that report using artificial intelligence in their operations, according to a ranking prepared by Allianz Trade. 

Analysts say Bulgaria ranks 28th out of 32 on this indicator. The data shows that by the end of 2024, only 6.5% of enterprises in the country rely on technologies working with artificial intelligence (AI technologies).

Although their share has almost doubled compared to the previous year, it remains significantly below the European average, which is 13.5%, and is several times lower than the figures for the US and China, the report says. In Bulgaria and Europe, artificial intelligence is primarily adopted by large enterprises, whereas in the United States, over 40% of small and medium-sized businesses already utilize AI in their operations.

The best in the adoption of AI technologies on the continent is Denmark, where nearly 30% of companies are already using such solutions. Sweden, Belgium and Finland are next with around 25%. Bosnia and Herzegovina, Poland, Türkiye, and Romania have the lowest proportion of companies utilizing artificial intelligence, with less than 5%, placing them behind Bulgaria.

"The delayed adoption of artificial intelligence, new technologies, and automation threatens the competitiveness of both Bulgarian businesses and their European trading partners. Combined with ongoing global economic challenges such as trade wars, this increases risks for companies. It is essential to conduct timely, objective assessments and implement measures at various levels to enhance stability amid rapid changes. Trade credit insurance is one tool available to Bulgarian companies," Kamelia Popova, country manager at Euler Hermes, which now operates under the brand name Allianz Trade, said.

In a separate recent study, Allianz Trade analysts also draw attention to Europe's lagging behind in the field of robotics. While some European countries have strong traditions, they are currently losing pace in the race with China, where 51% of all industrial robots in the world have been installed in 2024. Japan ranks second and the US third. Germany remains the most active in installing industrial robots in Europe, followed by Italy and France. In Europe in 2024, only 17% of all such machines were operational.

Germany and several other European countries have a strong position and strong traditions in both the use and production of robots, but they remain rather specialized in certain industries, the Allianz Trade study noted. Meanwhile, China is gaining momentum and convincingly consolidating its leadership in both areas.

According to the company's analysts, Europe is under serious pressure from both established competitors in the industry and newly appeared global players in the technology ecosystem with the boom of artificial intelligence. In this environment, urgent measures are needed to preserve positions, since robotics can boost productivity, help tackle Europe's demographic challenges, labour shortages, and defend its industrial sovereignty. Otherwise, the region may suffer serious losses in the field, as the automotive industry did, analysts warn. 

They say urgent measures should be taken in five main areas, drawing and implementing a roadmap for the development of robotics in Europe, securing investment for technology startups in the field, shortening the process between development and introduction of innovations, boosting the education, qualification of the workforce, and improving the regulatory framework in the field. This will give Europe a chance to stay on the robotics map and position itself successfully on a global market that is expected to reach over USD 100 billion in 2030, Allianz Trade reported.