In a new blog post, the European Central Bank analyzes survey responses from about 5,000 euro area firms on planned artificial intelligence investment over the next 12 months. Among firms planning such investment, 72% expect to use internal funds, while bank loans, grants and leasing are each cited by 16%. Most expect to use a single financing instrument, suggesting that external finance will play a limited supporting role. Planned spending centers on AI technologies and tools, cited by 49% of respondents, employee training at 46% and data infrastructure at 40%. External funding is more common for tangible or collateral backed investment: plans to invest in AI tools or data infrastructure are each associated with a 16 percentage point increase in the probability of combining internal and external finance. The increase is 9 percentage points for hiring AI specialists, while employee training has no statistically significant effect. The findings indicate that limited financing for intangible investment could restrict the scale and pace of AI adoption.
European Central Bank finds euro area firms expect to finance AI investment mainly from internal funds
European Central Bank analysis finds that 72% of euro area firms planning AI investment expect to use internal funds. External finance is more common for collateral backed technology and infrastructure spending than for employee training or specialist recruitment. This financing pattern could limit the scale and pace of AI adoption.