Artificial intelligence is rapidly becoming established in the European economy, but the reality of its adoption by businesses often remains unclear. An unprecedented analysis of more than three million company websites in Belgium, France, Germany and Luxembourg, carried out by Liser and published on Tuesday 10 March, sheds light on the situation. The verdict: the Grand Duchy appears to be the regional champion of AI.
In 2024, 23% of Luxembourg businesses say they are using artificial intelligence in one form or another. This is almost double the average observed in neighbouring countries and significantly more than in Germany (16%), France (10%) or Belgium (8%). AI adoption has exploded in recent years, increasing twelvefold since 2016, with a marked acceleration since the arrival of generative AI tools.
Cumulative AI adoption by country, 2016-2024. Image: Liser Policy Brief
The financial sector as a driving force
However, part of the reason for Luxembourg’s leadership lies in the very structure of its economy. The financial sector, which has a strong presence in the country and is particularly fond of predictive algorithms, weighs heavily in the statistics. “Around nine percentage points of Luxembourg’s lead can be explained by its sectoral structure, in particular the over-representation of finance”, the study points out. Once this effect is corrected, the adoption rate falls to 14.3%, a level close to Germany (14.8%), but still higher than France and Belgium.
Finance remains by far the main driver. More than 40% of banking and insurance companies in Luxembourg are already using AI, particularly for risk assessment or algorithmic decision-making. Technology companies and professional services are following the same trajectory. In these knowledge-intensive sectors, artificial intelligence is rapidly becoming a standard working tool.
Elsewhere, the spread remains much more tentative. In construction, real estate and manufacturing, less than 10% of companies use these technologies. The contrast highlights one of the major challenges of digital transformation: AI is progressing first in sectors that are already highly digitised.
The contrast highlights one of the major challenges of digital transformation: AI is progressing first in sectors that are already highly digitised. Image: Liser Policy Brief
In comparison with its neighbours, Luxembourg also stands out for an ecosystem of usage rather than technological development. The majority of companies do not create their own AI solutions but integrate existing tools into their operations or develop specific applications. Players who design the basic technologies remain in the minority.
The size of the company, a key role
The study also highlights the decisive factor behind this adoption: skills. Companies with strong capabilities in data analysis and artificial intelligence are by far the most likely to integrate these technologies. Skills such as machine learning, SQL or data processing appear to be particularly powerful indicators.
The size of the company also plays a key role. Larger organisations find it easier to invest in data, recruit specialists or adapt their internal processes. SMEs, on the other hand, still face higher costs and organisational barriers.
In this landscape, a comparison with neighbouring countries reveals complementarities. Germany stands out in the industrial applications of AI, while France remains strongly positioned in research and the development of basic technologies. Luxembourg, meanwhile, is establishing itself as a laboratory for adoption, driven by its financial sector and skill-intensive services.
This lead remains fragile, however. If the Grand Duchy wants to maintain its place in the AI race, the challenge from now on will be to extend the spread beyond finance and support traditional sectors. Without a massive effort on skills and adoption in SMEs, statistical leadership could quickly reveal its limits.
