Prosus & Dealroom.co - Report: The State Of AI In Europe - March 2026

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Europe: The Invisible AI Giant – Data, Paradoxes, and the Path Forward

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Open Source

Company

Prosus

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About Prosus & Dealroom.co - Report: The State Of AI In Europe - March 2026

The State of AI in Europe is a report by Prosus and Dealroom.co analyzing the paradoxical position of Europe in the global AI landscape. Despite leading in AI adoption (133 million monthly LLM users vs. 61 million in the US) and matching the US in AI talent and startup creation, Europe suffers from a severe late-stage funding gap and a tendency for its best startups to be acquired or funded by US investors. The report explores four paradoxes: Talent, Usage, Startup, and Way Forward, providing data-driven insights and recommendations for Europe to become a stronger builder of AI companies rather than just a consumer. Originally referenced in the Awesome-AI-Market-Maps repository.

Key Features

Detailed analysis of four AI paradoxes: Talent, Usage, Startup, and Way Forward

Statistical comparisons between Europe and the US (AI professionals, LLM users, startup funding)

Identification of capital as the primary gap rather than talent or ideas

Focus on European AI adoption rates and consumption of foreign-built models

Actionable recommendations for Europe's AI ecosystem

Pros & Cons

Pros

Packed with specific, data-backed insights (e.g., 133M EU LLM users vs 61M US)
Highlights underappreciated European strengths in AI talent and adoption
Clear comparative framework between Europe and the US
Free to download and distribute
Concise paradox structure makes findings easy to understand

Cons

Limited to the European perspective; no deep comparison with Asia beyond brief mention of China
Report date is March 2026, which may be speculative or a placeholder; data may not reflect current 2025 realities
Does not provide a directory of specific AI tools or products; it is a research report
Lacks detailed breakdown of specific European AI companies beyond aggregate statistics

Best For

Understanding the current state of AI in Europe for policy researchBenchmarking European AI ecosystem against the United StatesIdentifying investment opportunities and gaps in European AI startupsSupporting advocacy for increased late-stage funding in EuropeAcademic research on AI industry dynamics

FAQ

Who published the State of AI in Europe report?

The report is published by Prosus in partnership with Dealroom.co.

What are the main paradoxes identified in the report?

The report identifies four paradoxes: the Talent Paradox, the Usage Paradox, the Startup Paradox, and the Way Forward (addressing the investment gap).

How does Europe compare to the US in late-stage AI funding?

Europe receives approximately $12 billion in late-stage AI funding compared to $141 billion in the US, a nearly 9-to-1 gap.

Is the report free to access?

Yes, the full report can be downloaded for free from the Prosus website.

What is the talent paradox in European AI?

Europe has about 325,000 AI professionals (matching the US), but 48% work in old economy roles compared to 33% in the US, and none of Europe's top 15 AI employers are European tech companies.