Europe’s AI spending set to hit $144 billion by 2028: what it means for startups

Europe’s investment in artificial intelligence is set to surge, with spending expected to hit $144 billion by 2028. This growth underscores AI’s increasing importance for startups and established companies alike, as it becomes a fundamental driver of scalability and innovation.

According to PwC's 2025 report, 49% of technology leaders have fully integrated AI into their core business strategies, while a third have embedded it deeply into their products and services. This widespread adoption reflects AI’s transformative potential across industries.

JD Raimondi, Head of Data Science at Making Sense, emphasized AI’s role in operational efficiency: "When AI is seen as a force for process or cost optimization, it can lead to automating tasks that were previously impossible to automate."

Ruban Phukan highlighted the broader impact, stating, "The opportunity to address long-standing challenges across industries, which have historically constrained growth, is here." This suggests AI is not only a tool for efficiency but also a catalyst for overcoming traditional barriers to expansion.

For European startups, leveraging AI is becoming essential to redefine scalability and drive innovation, positioning it as a critical cornerstone for business success in the near future. As AI spending accelerates, the ecosystem is poised for significant transformation, with startups playing a pivotal role in shaping the continent’s technological landscape.

Europe’s AI spending is projected to reach $144 billion by 2028, signaling a major boost for startups and innovation. Nearly half of tech leaders have fully integrated AI into core strategies, highlighting its role in scalability, process optimization, and addressing long-standing industry challenges.