AI Diffusion in European SMEs: Data-Driven Ecosystems and Value Creation

Small and medium-sized enterprises (SMEs) increasingly compete within European digital ecosystems where digital infrastructure, data analytics capability, and specialised human capital shape both access to advanced technologies and the ability to convert data into economic value. This study examines artificial intelligence (AI) diffusion in European SMEs through an ecosystem capability-stack lens, arguing that AI adoption is more plausibly explained by complementary data readiness foundations than by single-technology indicators. The analysis uses harmonised Eurostat indicators for EU Member States, combining ICT usage statistics on AI, machine learning for data analysis, cloud-based analytics, in-house analytics capability, and ICT specialist intensity with Structural Business Statistics measures of SMEs value creation (value added per enterprise). Methodologically, the article applies correlation analysis, principal component analysis to derive a composite Data Readiness Index, k-means clustering to identify cross-country ecosystem profiles, and parsimonious regression specifications controlling for GDP per capita in PPS. The results indicate that stronger analytics capabilities align with higher AI uptake, and that the composite data readiness measure predicts cross-country variation in AI diffusion. Furthermore, AI uptake and joint adoption bundles are positively associated with SMEs value creation, while diffusion remains uneven across the digital-intensity distribution, with data analytics growth concentrated among digitally advanced SMEs. These findings operationalise data readiness as a measurable ecosystem foundation for AI diffusion and highlight digital-divide mechanisms that can limit inclusive value creation within European SMEs ecosystems.