Dealroom.co – The State of AI in Europe: The Invisible Giant

The State of AI in Europe report highlights the current status, challenges, and opportunities of AI development and investment across Europe.

Europe possesses world-class AI talent, a significant user base, and record investments reaching $21.8 billion in 2025, yet it faces challenges such as capital availability and regulatory friction. The report emphasizes Europe's potential to lead in vertical AI applications across sectors like health, energy, defense, and fintech, while noting that many European AI companies are acquired by US investors. Key AI hubs include London, Munich, Zurich, and Paris, though none yet match the scale of US centers like the Bay Area.