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Europe AI Investment To Reach $290 Billion By 2029 As Adoption Expands

European investment in artificial intelligence is projected to reach $290 billion by 2029, with a compound annual growth rate of 33.7% between 2025 and 2029. The increase reflects broader adoption of AI across sectors, including finance, retail, healthcare and software services.

Robust Expansion Across Key Sectors

Banking, retail and software services continue to lead investment, with banking expected to account for 12.5% of total spending in 2026. At the same time, healthcare is projected to be the fastest-growing sector, with a growth rate of 39.7%. This expansion indicates deeper integration of AI into core business operations. Demand is rising for automation, analytics and decision-support systems across industries.

The Dominance Of Generative And Agentic AI

Generative AI is expected to account for about 54% of the market by the end of the forecast period, reflecting a shift from pilot projects to production-level deployment. Adoption is increasingly focused on enterprise use cases. In parallel, agentic AI systems are gaining traction as companies move toward more automated and multi-step processes. Use cases are expanding across customer service, operations and internal workflows.

Software As The Powerhouse Of Innovation

Software is forecast to represent 58.5% of AI spending in 2026 and remains the fastest-growing segment, with projected growth of 42.9% through 2029. Investment is concentrated in platforms that support integration and scalability. As a result, development trends are shifting toward cloud-based systems and enterprise applications. These tools enable deployment across multiple business functions.

Strategic Adaptation Amid Regulatory And Operational Challenges

Companies are scaling AI adoption despite geopolitical risks, supply chain constraints and regulatory developments such as the EU AI Act. These factors are shaping deployment strategies and compliance requirements. In response, demand for governance, risk management and oversight tools is increasing, particularly in regulated sectors. Organizations are adapting to meet evolving regulatory standards.

Sector-Specific Opportunities And Long-Term Trends

Banking is applying AI to fraud detection, threat analysis and customer service automation, while retail is using AI for pricing, personalization and supply chain optimization. These use cases continue to expand as adoption grows. Additional sectors, including media, professional services, utilities and life sciences, are also increasing AI integration. Current investment trends indicate continued expansion across industries.

Women Make Up A Majority Of The EU’s Science And Technology Workforce But The Real Gap Is Elsewhere

Women now make up the majority of the EU’s science and technology workforce. According to Eurostat, in 2025, more than 81.6 million people aged 15 to 74 were employed in science and technology occupations across the EU. Of those, 52.5% were women, equal to 42.8 million women. The number of women in these occupations rose by 27.9% compared with 2015, an increase of more than 9.3 million over a decade.

On the surface, the numbers resemble progress. However, Eurostat’s category requires context before that figure can be read accurately. The data refers to HRST, or Human Resources in Science and Technology, specifically people employed in science and technology occupations. These are roles where the main tasks require professional or technical knowledge in physical and life sciences, but also in social sciences and humanities. That definition is wider and broader than engineering, ICT, laboratory science, or high-tech research alone.

Zooming In

The gender picture changes once the data moves from a wider definition of the workforce to the narrower scientist-and-engineer (research and manufacturing) subgroup.

Scientists and engineers represented almost a quarter of all people employed in science and technology in the EU in 2025. Eurostat describes scientists and engineers as often being the innovators at the centre of technology-led development, making them an important subgroup to focus on separately.

Women accounted for only 40.8% of scientists and engineers in 2025, despite making up more than half of the wider category. That share has increased by a mere 0.5 percentage points over the past decade. The absolute number of women working as scientists and engineers rose from 5.3 million in 2015 to 8.2 million in 2025, despite the push from national and international organisations to increase the number of women in the field. Europe has expanded the number of women in science and technology occupations over ten years. However, that expansion has not extended equally into the scientist-and-engineer subgroup, where much of Europe’s research and innovation work is conducted.

In 2025, of the 39.4 million women aged 25 to 64 working in science and technology occupations in the EU, 35.5 million worked in service activities. Only 2.7 million worked in manufacturing. Women accounted for 57.5% of science and technology employment in services, but only 31.3% in manufacturing.

In 2025, the highest shares of women employed in science and technology occupations were recorded in Latvia at 62.4%, followed by Hungary’s Great Plain and North region at 61.1%, Estonia at 60.5%, Poland’s Central macroregion at 60.4%, and Lithuania at 60.3%. No EU country recorded a majority of women among science and technology workers in manufacturing.

Break-down

Eurostat’s figures measure employment in broad science and technology occupations. They do not show job security, pay levels, management roles, promotion rates, research leadership, or whether women are concentrated in junior or senior workplace positions.

The classification of “senior” also requires additional explanation. Eurostat reports that 45.9% of science and technology workers aged 25 to 64 in the EU were classified as “senior” HRST in 2025. In this dataset, “senior” refers to workers aged 45 to 64. It does not mean senior manager, senior researcher, team lead, or decision-maker.

A high female share in the wider Human Resource Science and Technology (HRST) category does not parallel equal representation across scientists, engineers, manufacturing roles, senior posts, pay, research funding, or decision-making. These figures also reflect the occupational mix inside each country or region, not only structural progress across all areas of science and technology.

The Case Of Cyprus

Eurostat data places Cyprus’s overall science and technology employment at 37.2% of the labour force in 2025, slightly above the EU-27 figure of 36.9%, and above Greece at 26.8%, Malta at 33.9%, and Turkey at 18.2%. This figure covers the total share of the labour force employed in science and technology across all genders.

Progress Or Work-in-Progress?

52.5% in the broad category. 40.8% among scientists and engineers. 31.3% in manufacturing. Europe’s gender gap in science and technology hasn’t closed yet, and there is still work to be done to encourage and support more women to enter the field, especially in research and manufacturing.

Let’s not wait another decade for another couple of percentage points of hope.

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