Why the Nordics Are Falling Behind in GenAI Adoption—and What They Can Learn from European Neighbors

Adopting and Scaling GenAI: Lessons for the Nordics from European Neighbors

Key Findings

Low executive interest and high patience: Nordic top management shows significantly less interest in generative AI (GenAI) compared to peers (29% vs. 54-63%). This, combined with greater patience in meeting targets (71% vs. 52-60%), may limit the strategic impact of GenAI in the region.

Technical focus with implementation hurdles: Nordic technical leaders are highly engaged (89%) but face challenges selecting the right technology (29%). Implementation difficulties are also higher (35% vs. 24-31%), suggesting insufficient attention to non-technical factors like governance and change management.

Stronger regulatory concerns: Nordic organizations report greater worries about regulatory compliance (46% vs. 34% in the Netherlands), which could slow adoption.

Fear of mistakes holding back innovation: Nordics express more fear of errors with real-world consequences (45% vs. 23% in Germany). This may explain their lower exploration of agentic AI.

Comparing the Nordics with Regional Peers

The Nordics stand out for their cautious approach. Despite technical enthusiasm, executive support remains low. This gap between grassroots technical interest and leadership buy-in may be slowing progress.

Choosing the right technology is a bigger issue in the Nordics, reported by nearly a third of respondents—double that of peers. Implementation challenges are also more common, indicating a need to balance technology with governance, risk management, and clear business cases.

Patience is a defining trait in the Nordics: 71% are willing to wait over 18 months before cutting investments if value targets aren’t met. This slow-follower stance contrasts with neighbors investing more in new tech like autonomous agents, potentially risking competitiveness.

Insights from the United Kingdom

The UK shows strong excitement and fascination with GenAI, with over half of respondents expressing these feelings. Research and development (R&D) adoption is higher (41% vs. 29% in the Nordics), likely supported by strong university and government involvement.

The UK faces fewer implementation challenges (26% vs. 35%), possibly due to a mature regulatory environment and a principles-based approach to compliance. The government’s recent launch of an AI assurance platform underlines this proactive stance.

Nordic organizations could benefit from adopting a risk-based, principle-led approach to AI governance, boosting confidence without waiting for rigid rules. Combining this with Nordic pragmatism may accelerate responsible AI adoption.

Lessons from Germany

German executives show the highest GenAI interest, fueling an active experimentation culture. Germany leads in the number of GenAI pilots and expects faster scaling.

The German approach is value-driven and fail-fast: they prioritize experimentation but closely monitor outcomes to ensure value. This mindset reduces fear of mistakes and regulatory concerns, encouraging calculated risk-taking.

Germany also highlights talent shortages as a key barrier, reflecting their deeper understanding of the skills needed to scale GenAI. The Nordics might consider this as they move beyond early experimentation.

What the Nordics Can Learn from the Netherlands

The Netherlands matches the UK with strong R&D adoption (42%) and leads in trust towards GenAI (54% vs. 40% in the Nordics). While regulatory concerns are lower, risk management is a key focus, with half citing it as a barrier.

Dutch organizations emphasize improvements in software quality, data standards, and model accuracy more than the Nordics. They also express concerns about data misuse and availability, indicating a mature view of AI risks.

For the Nordics, building trust, investing in R&D, and developing comprehensive risk frameworks are essential to fully realize GenAI benefits.

Conclusion

Even among similar European neighbors, the Nordics are more cautious with GenAI adoption. This hesitancy could hinder competitiveness in global markets where GenAI is creating advantages.

The region’s low executive engagement and slow scaling expectations suggest a need for strategic shifts. Without these changes, the Nordics risk falling behind in an area with growing economic and innovation impact.

Recommendations for Nordic Organizations

• Engage executives: Raise awareness among top management about GenAI’s strategic value and transformative potential.
• Shift focus to strategy: Move beyond technology exploration to identifying clear business use cases aligned with organizational goals.
• Establish governance and risk management: Create frameworks that enable scaling responsible and trustworthy AI solutions.
• Promote a fail-fast experimentation culture: Encourage rapid testing and learning while monitoring value realization closely.

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