The State of GenAI Adoption in Europe  

GenAI marks a turning point in digital transformation – one that is fundamentally different from any technology shift we’ve seen before. As a technology that augments intelligence and creativity, its capacity to revolutionize industries is infinite. Senior leaders across Europe are eager to tap into GenAI’s potential to drive large-scale efficiencies and expand capabilities. But what does this mean for consumers? Are businesses truly considering the impact of GenAI on consumer needs and behaviors?  

As European businesses race to implement GenAI, they must center their strategies around consumers, ensuring that innovation serves not only business goals but also the evolving demands of the consumer. Placing consumers at the heart of GenAI adoption is key to achieving sustainable, uncommon growth.  

AI Adoption Trends in Europe 

Data from our latest research report, The Rise of the AI-Powered Consumer, highlights that around a third of German (30%) and nearly 40% of UK consumers have embraced GenAI tools in the last six months. However, Europe lags behind other regions – Asian markets like China and Singapore report much higher adoption rates, with 60% and 56% respectively. The slower adoption can be attributed to growing skepticism and privacy concerns.

One notable trend in the European markets we surveyed is the younger demographic leading the charge. Millennials (ages 28-42) have shown the highest adoption rates, with 53% actively engaging with GenAI tools. In comparison, GenZ (ages 16-28) lags behind by 3 percentage points. Their lower enthusiasm stems from concerns over the relevance and accuracy of GenAI’s output. With millennials holding the most purchasing power today, businesses need to act now to meet their needs, or risk falling behind.  

Putting Consumers at the Heart of AI Innovation 

For GenAI to drive meaningful innovation, companies need to understand how European consumers are interacting with the technology. Our research shows that more than half of European consumers surveyed (and global consumers) use GenAI for both professional and personal purposes, with personal usage rates hitting 90%.  

The leading use case of GenAI is entertainment – creating memes, songs and other content to share with family and friends. This trend offers brands an opportunity to engage with consumers in playful, creative ways. Take Zalando, the German e-commerce giant, for example: they’ve introduced the Algorithmic Fashion Companion (AFC), a GenAI-powered tool that provides personalized fashion recommendations, resulting in a 40% increase in average basket size.  

European consumers also expect more from brands adopting GenAI. In the UK and Germany, over 70% of consumers want to use AI during the pre-purchase phase, showcasing the growing demand for AI-powered product and service exploration. Moreover, 73% of respondents view brands using GenAI as innovative, while 77% say GenAI sparks new product discoveries. It’s clear that consumers want AI to do more than just entertain – they want it to help them make informed choices.  

AI and Ethical Responsibility 

In Europe, there is a heightened demand for accountability and transparency when it comes to GenAI. Nearly 66% of German consumers express concerns about the ethical use of GenAI, a sentiment echoed across other European markets. Moreover, 82% of global consumers expect brands to disclose when they are using AI in their services.  

The reason for this concern is clear – privacy and data security remain top priorities for European consumers. Two-thirds of consumers cite these as primary barriers to greater GenAI adoption. This is especially pronounced in Germany, where privacy laws and concerns about data misuse are particularly strict. Consumers expect businesses to take the lead in creating ethical frameworks and transparent policies for AI usage, with 80% of global respondents agreeing that it is the responsibility of companies to develop clear guidelines for GenAI.  

As businesses in Europe look to unlock the full potential of GenAI, they must balance enthusiasm with caution. There is certainly a growing appetite for innovation, but the key to success lies in ensuring that these technologies enhance the consumer experience in ethical and responsible ways. This means taking seriously the need for transparency, privacy protection and clear ethical guidelines.