72 percent of firms rely on internal funds to finance AI
Around 72 percent of euro area businesses planning artificial intelligence investments expect to rely on internal funds rather than external debt. The European Central Bank surveyed approximately 5,000 enterprises across member states in its latest access to finance survey.
Cash flow over bank credit
Internal resources dominate company spending plans for artificial intelligence adoption.
According to the ECB survey of 5,000 firms, 72 percent of enterprises preparing AI investments intend to finance them through cash flow or retained earnings.
By comparison, bank loans, grants and leasing each account for only 16 percent of firms, while equity and venture capital represent just 6 percent.
When allocating AI budgets, 49 percent of firms prioritize software tools and technologies, followed by employee training at 46 percent and data infrastructure at 40 percent.
Only 12 percent plan to hire specialized AI personnel directly.
The collateral divide
The composition of AI spending determines whether companies access external finance.
Physical equipment and data infrastructure can serve as collateral to lower borrowing costs, increasing the likelihood of combining internal and external funding by 16 percentage points.
In contrast, intangible investments like hiring specialists raise that probability by only 9 percentage points, while employee training shows no measurable impact on securing external debt.
Self-funding slows the transition
Relying on internal cash limits the scale and speed of corporate technology adoption in Europe.
Bank lending frameworks struggle to finance intangible assets like workforce upskilling without physical collateral.
Without deeper capital markets and venture funding, the euro area risks falling behind in productivity.