European firms grapple with AI skills gap and new regulations

A Skillsoft study of 2,000 employees, managers and leaders in Germany, the UK and North America finds that while 80 % of German workers use AI tools at work, only 21 % feel adequately prepared. Managers rate readiness 52 percentage points higher, and few firms systematically assess AI competencies.

German mid‑size companies report uncertainty about how to start AI projects, citing lack of time, staff and clear guidance. Industry seniors stress the need to align AI use with business value rather than technology for its own sake.

PwC’s Global AI Jobs Barometer shows AI creating a “dual‑track” labor market: professional roles that combine AI‑automated routine work with human judgment grow twice as fast as “democratised” jobs, driving higher salaries and productivity for firms that master AI.

The EU Parliament has postponed high‑risk AI‑Act obligations to late 2027 and 2028, extending compliance windows for companies but keeping strict documentation and risk‑management requirements.

Chinese restrictions on foreign investment in AI‑critical sectors mean European firms must partner locally to operate there, while export controls limit the use of Western AI models in China.

An Ifo survey reveals one‑fifth of German firms consider AI capable of replacing university‑qualified staff, especially in retail, highlighting growing concerns about skill displacement. A free KI‑Readiness check for SMEs offers a quick assessment of AI maturity across ten dimensions.