ZAGREB, 9 July (Hina) - Small and medium enterprises (SMEs) in Central and Eastern Europe are increasingly recognising artificial intelligence as a business tool, yet only 25% use it on a large scale, with the Czech Republic leading the way and Croatia lagging behind in 9th place among 11 countries, according to a report by the AI Chamber.
The AI Chamber, a Poland-based organisation supporting the responsible development and research of the AI market in Central and Eastern Europe, published “How do SMEs in CEE find their way in the world of AI?”, a report based on a survey among more than 3,200 employees across 11 countries in the region.
The report says AI is present in the region but its implementation among SMEs remains superficial. These enterprises could lead the AI transition, but to do so, they need to embed AI into everyday operations rather than treat it as an experiment.
Czechia, Estonia, and Slovakia lead; Croatia, Latvia, and Bulgaria fall behind
Czechia, Estonia, and Slovakia are the most advanced in introducing AI to SMEs, while Croatia, Latvia, and Bulgaria are at the bottom of the ranking.
Slovakia and Poland show ambitious plans for AI development, with most companies aiming to invest in the technology. The most common areas of AI application include data analysis, automatic translation, task automation, marketing, and customer support.
Among surveyed employees, 61% actively seek ways to use AI in their work, especially in Czechia and Poland. On the other hand, 40% of companies cite a lack of qualified personnel as the main obstacle to implementation, particularly in Croatia and Slovenia. In Romania, the biggest challenge is resistance to change.
Researchers note that only 39% of AI users are aware of AI legislation, with Czechia and Poland performing best, while Croatia ranks worst in this regard.
Companies that make greater use of AI, 25% of respondents, also show higher awareness of ethical principles. Large companies are more likely to invest in AI than micro-enterprises, called “digitally withdrawn”, although 70% of SMEs in the region have been operating for over ten years. Younger companies (less than two years old) are more innovative and more likely to trust in AI’s potential.
In Croatia, a third of SMEs show no interest in AI
The largest number of surveyed companies came from Croatia. Researchers note that Croatia is among the countries with the lowest AI adoption rates, with only 13% of SMEs aware of the EU AI Act, the lowest rate in Central and Eastern Europe.
Croatian companies show limited belief that AI offers a competitive advantage and are the least optimistic about the economic and strategic impact of the technology.
Croatia and Slovenia also stand out for their indifference to AI adoption, with fewer than 40% of Croatian firms seeing any benefits. Even those that recognise potential gains cite a lack of motivation, knowledge, or resources to implement AI, suggesting that in-depth education and strategic support are urgently needed in Croatia.
Researchers suggest that many in the region could look to Estonia as a model, alongside the Czech Republic. In Estonia, over 67% of companies report a positive impact from AI, and more than 65% are familiar with the EU legislation, showing high levels of usage and regulatory readiness.
Alarmingly low strategic and regulatory readiness
The research highlights that, despite some enthusiasm for AI among SMEs in the region, strategic and regulatory readiness remains worryingly low. Only 8% of all surveyed firms say they would be ready for an AI audit or upcoming EU compliance checks.
This indicates that for many companies, AI is still a tactical experiment rather than a strategic capability. For policymakers and investors, this is a signal that education and structured support could turn this gap into an opportunity.
The researchers cite UNCTAD data, which predicts that the global AI market could reach US$ 4.8 trillion by 2033, a 25-fold increase from its estimated value of $189 billion in 2023.
AI growth is not only technological but also geopolitical - more than 60% of AI patents and R&D investment are concentrated in the US and China. Europe is trying to catch up not only through innovation but also via regulation, ethics, and building trust, the AI Chamber says.
SMEs, it adds, could play a key role in this but are also vulnerable, as many are still not prepared for AI deployment, although two-thirds of businesses in the region express a desire to expand their use of AI.
Srđan Baković
Izvršni urednik
Hrvatska izvještajna novinska agencija (HINA)
