Why French Companies Are Falling Behind in AI Adoption and How They Can Catch Up

France Is Lagging in AI Adoption

The French government is pushing for increased use of artificial intelligence (AI) technologies across companies to boost productivity and create new value. However, France is currently behind in AI adoption compared to other European countries.

The AI Gap

Adopting AI has become a key priority for France, especially given its aging population and the urgent need to improve productivity. Despite having strong AI talent and startups like Mistral, and benefiting from a centralized state approach, only about 10% of French companies used AI-related technologies last year. This is below the European Union average of 13%.

Several factors explain this gap. First, there is a disconnect between France’s advanced telecommunications infrastructure and the slow digital adoption by small businesses. This limits practical AI applications such as chatbots or automated online shopping tools. Additionally, France lacks large tech companies that can develop or deploy AI solutions at scale. Finally, concerns about risks related to generative AI—such as inaccuracies and cybersecurity threats—make businesses cautious about rapid adoption.

To close this gap, companies need to better understand the real benefits of AI beyond just productivity gains. Aiman Ezzat, CEO of French IT firm Capgemini, points out that value creation should be the focus. For example, an oil-field services company might use AI to speed up maintenance on offshore platforms—not necessarily to boost productivity directly, but to increase the value of keeping the platform operational.

Amid growing geopolitical tensions, especially around technology sovereignty, Ezzat emphasizes that the term “sovereignty” is often misused. Most of the technology stack, including data center chips, is American. Instead, the priority should be “data sovereignty,” which protects companies from foreign government data requests. This can be addressed by using cloud solutions that are isolated from external access.

Combining AI deployment with IT services, as Capgemini does through partnerships with startups like Mistral, faces challenges. Some believe AI’s transformative nature will change business economics in fundamental ways. Still, encouraging AI adoption is crucial at a time when France and Europe face slow economic growth. The biggest barrier for businesses remains a lack of confidence and limited funds for investment. Ezzat warns that geopolitical risks and low growth are dampening client confidence and investment, and this situation might worsen before improving.

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The Week Ahead

• Monday: Paris Haute Couture week begins.
• Tuesday: Senate reads energy planning law; Raise AI summit takes place; Finance Minister Lombard questioned on Cum-Cum trades.
• Wednesday: Bank of France releases economic survey.
• Thursday: Bank of France’s Villeroy speaks on current account report; Sotheby’s auctions original Birkin bag; French trade balance announced.
• Friday: French Consumer Price Index (CPI) data released.

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For government professionals interested in AI and digital transformation, exploring practical AI training can provide valuable skills for navigating this evolving landscape. Courses are available that cover AI tools, prompt engineering, automation, and more at Complete AI Training.