AI is transforming industries, but for many European companies, adoption is lagging behind global competitors. According to Gallup’s Culture of AI Benchmark – Europe Report (november 2024), the problem isn’t a lack of technology or resources—it’s cultural readiness. This gap in readiness poses a significant threat to European businesses aiming to stay competitive in an AI-driven world.
Jeremie Brecheisen, Managing Partner of Gallup EMEA explained yesterday during a talk that they wanted to write a report that wouldn’t expire as fast as other reports. And I think they succeeded. They interviewed the chief HR officers or people analytics officers of 40 major European enterprises and then did a survey with CHRO, CTO, CIO, … These companies represent 3,5 million employees from 18 industries in 11 countries in Europe. Below is a summary, but every C-level executive should download and read the full report. Honestly, it’s shocking.
Europe’s AI Adoption Challenge
While AI’s potential is vast, with estimates from McKinsey suggesting generative AI could contribute $2.6 to $4.4 trillion to the global GDP, European companies are trailing behind. Gallup’s findings highlight stark contrasts: only 13% of European employees feel engaged at work compared to 23% globally. Employee enthusiasm for AI is also lower, with only 37% of European employees expressing interest compared to over 50% in other regions.
One leader interviewed for the report lamented, “Europe is not behind because of a lack of capital, but a lack of culture.”
What’s Missing? Cultural Readiness
Gallup identifies four dimensions critical for cultural readiness in AI:
- Systemic Readiness
Only one in ten leaders is satisfied with the speed of decision-making in their organizations. Centralized decision-making often hinders agility, leading to delays and resistance. Leaders who empower employees closest to the action are five times more likely to feel their culture is ready for AI. - Leadership Readiness
Trust in leadership is foundational. Alarmingly, trust in German business leadership has dropped from 41% pre-pandemic to just 27% today. Without trust, leaders struggle to inspire employees to embrace AI-driven change. - Team Readiness
Seven in ten leaders expressed concerns about their employees’ readiness to work with AI. Reskilling is a top priority, with one executive emphasizing, “We need skills around data savviness and understanding AI.” - HR Readiness
HR must lead the charge in fostering AI engagement. Gallup notes that organizations with well-trained HR teams are better positioned to drive adoption and address employee concerns.
The Opportunity for Change
Despite these challenges, the report also shows that change is possible. When organizations focus on culture, they can unlock significant benefits. For instance, Gallup’s Exceptional Workplace Award winners report 70% employee engagement, proving that deliberate cultural investment pays off.
Gallup’s data also reveals a tipping point: organizations addressing at least four key readiness factors are three times more likely to feel prepared for AI adoption than those addressing fewer.
Recommendations for C-Level Leaders
For CEOs and CHROs aiming to close the AI readiness gap, the following actions are critical:
- Invest in Trust-Building Leadership
Encourage leaders to embrace and model AI adoption, creating a ripple effect of confidence throughout the organization. - Prioritize Reskilling
Equip employees with the tools and knowledge to thrive in an AI-powered workplace. Tailored training initiatives can align skillsets with business needs. - Simplify Processes
Reduce bureaucracy and foster cross-departmental collaboration to accelerate decision-making and innovation. - Engage Employees
Create a culture of curiosity and experimentation. As one leader stated, “We need to spark the joy around AI.”
Conclusion: Culture is Key
AI adoption is not just a technological challenge—it’s a cultural one. As the Gallup report underscores, European companies must prioritize cultural readiness to harness the full potential of AI. With deliberate action, leadership commitment, and a focus on engagement, businesses can transform their workplaces and secure a competitive edge in the AI era.
At Aigentel, we recognize the critical role of change management in driving AI initiatives forward. That’s why our team includes certified Prosci change management professionals, who are ready to help your organization navigate the complexities of AI adoption while fostering a culture of engagement and growth. For more insights on building an AI-ready culture, contact Aigentel today. Let us guide your organization through the journey of AI integration, strategy, and transformation.
