A European Commission survey has found widespread adoption of artificial intelligence among smaller businesses, but considerable reluctance to allow automated systems to make decisions about employees. The findings expose a growing divide between technological investment and confidence in workplace automation.

Artificial intelligence is becoming established across European businesses, but almost half of companies remain unwilling to trust automated systems when decisions concern their employees, according to a European Commission survey published on 14th October.

The Eurobarometer findings show that 42 per cent of the small and medium-sized enterprises and mid-cap companies surveyed already use artificial intelligence or algorithmic management systems, although most deployment remains limited or experimental. A further 21 per cent intend to introduce such technologies in the future.

Despite this expanding adoption, 49 per cent of respondents said they did not trust artificial intelligence or automated systems to make staff-related decisions. The figures suggest that companies increasingly distinguish between using technology to improve business processes and delegating managerial responsibility to software.

The Commission’s survey of European businesses was conducted between March and April 2026, involving approximately 12,826 telephone interviews with company leaders across the EU’s 27 member states.

Businesses prefer assistance to automation

The survey provides a more detailed picture of workplace AI than conventional statistics measuring whether companies have adopted the technology.

Among the businesses interviewed, customer service and client relations were the most commonly reported areas of application, accounting for 47 per cent. Monitoring employee performance and productivity accounted for 36 per cent, while logistics, planning and staff scheduling represented 30 per cent.

These functions differ substantially in their consequences for workers and managers.

A system that helps organise deliveries or forecasts customer demand may improve efficiency without directly determining employees’ working conditions. Software that evaluates performance, allocates shifts or recommends staffing changes can influence employment decisions and requires a different level of organisational supervision.

The survey found that 61 per cent of companies considered AI useful in supporting decisions. However, human involvement remained central: 90 per cent of respondents reported that people continued to make decisions, while fully automated decisions accounted for only 2 per cent.

The results undermine the assumption that adopting AI necessarily means transferring control of business operations to autonomous systems.

For many companies, the immediate commercial value lies in processing information more rapidly, identifying patterns and reducing administrative workloads rather than removing human management entirely.

Investment costs remain a substantial barrier

Financial and organisational obstacles continue to limit adoption.

Half of the companies surveyed cited high investment costs, while 49 per cent identified legal uncertainty and 48 per cent pointed to insufficient expertise.

These findings are particularly relevant to small businesses, which frequently lack dedicated technology teams, extensive data infrastructure or the resources to evaluate complex software systems independently.

For such businesses, purchasing AI tools is only one component of the investment. Implementation can also require employee training, changes to internal procedures, data-security assessments and continuing technical support.

The findings add a workplace dimension to concerns raised in EU Today’s earlier examination of Europe’s AI productivity gap, which identified investment, computing capacity and organisational restructuring as obstacles to translating adoption into higher productivity.

A company may purchase sophisticated software without necessarily achieving corresponding improvements in performance. Those improvements depend on whether the technology is integrated into everyday operations and whether employees have the skills to use it effectively.

Brussels prepares further workplace legislation

The survey arrives while the European Commission is considering additional rules on algorithmic management through its proposed Quality Jobs Act.

The initiative is intended to address working conditions, workers’ rights and the increasing use of automated systems in managing employees.

A consultation launched in July asked European employers and trade unions to consider transparency in automated decisions, excessive workplace monitoring and the responsibilities of companies using AI.

The second consultation phase ended in September, allowing social partners to propose negotiated arrangements before the Commission determines its next legislative steps.

The broader regulatory framework is already changing. As EU Today explained when the AI Act entered a new enforcement phase, Brussels has begun enforcing certain obligations for general-purpose AI models, while important requirements for high-risk applications, including employment-related systems, follow a later timetable.

Stand-alone high-risk systems are scheduled to face the relevant obligations from December 2027, with another deadline in August 2028 for high-risk systems embedded in regulated products.

The distinction matters for employers planning investments today. Existing data-protection and employment obligations continue to apply, but some of the AI Act’s more specific compliance requirements remain subject to transition periods.

The Commission’s latest survey indicates that businesses are already exercising caution independently of these future obligations. Their reluctance to automate sensitive staff decisions suggests that accountability, reliability and employee confidence will remain important factors in determining how extensively artificial intelligence is deployed.

For Brussels, the challenge is to establish workable rules for that transition without making implementation prohibitively expensive for smaller companies, which account for much of Europe’s employment and commercial activity.

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