French firms lag euro area in AI adoption, gap to widen

A Banque de France (BDF) study, based on the ECB's 2025Q4 SAFE survey, reveals that only 23 percent of French firms report moderate or significant AI use, significantly below the euro-area average of 39 percent.

This adoption gap is also evident compared to other large euro-area economies like Germany (46 percent) and Spain (44 percent).

The disparity persists across all firm-size categories, with large French firms showing only 22 percent AI adoption compared to 46 percent for their euro-area counterparts.

Similarly, French firms lag in every sector, including services (31 percent vs. 40 percent euro area) and industry (21 percent vs. 28 percent).

While French firms are less likely to cite a lack of AI-related skills as a barrier, they more frequently point to data, privacy, and ethical concerns.

The study indicates that the AI adoption gap is likely to widen, as French firms plan to invest 7.2 percent of their total planned investment in AI over the next year, compared to 9.1 percent for the euro area.

Firms with higher current AI intensity tend to invest more, suggesting a divergence over time.

Despite concerns about AI substituting labor, the survey finds that firms with more intensive AI use in manufacturing and services tend to expect higher employment growth.

However, no clear relationship is observed in construction and trade.

The BDF also notes no link between AI use and future price or wage growth, implying that any productivity gains from AI will likely translate into increased firm profits in the short run.