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Title page 1
Contents 1
Abstract 2
1. Introduction 3
2. Measuring Firm-Level AI Adoption 7
2.1. Firm-Level AI Adoption from Firm Websites 7
2.2. Validation of the AI Adoption Indicator 10
2.3. AI Exposure vs. Realized AI Adoption 11
3. Further Data Sources 12
3.1. Firm Characteristics from Orbis 12
3.2. Revelio Labs Data on Workforce Skills 13
3.3. Representativeness of the Linked Samples 14
4. The AI Landscape in Europe 16
4.1. Trends in AI Activity 16
4.2. Trends in AI Adoption by Sector 20
4.3. Spatial Distribution of AI Activity 21
5. Determinants of AI Adoption 23
5.1. Classification of skills 23
5.2. Empirical Specification 25
5.3. Results 26
6. Skill Foundations of AI Adoption 28
6.1. Empirical Strategy 28
6.2. Results 30
7. Conclusion 34
References 36
Appendix 40
A. Figures 40
B. Tables 47
C. Details on Data 49
D. Definitions 50
E. Prompts 54
Tables 15
Table 1. Balance Test: Representativeness of Firm Website Data 15
Table 2. Determinants of AI Adoption 27
Figures 12
Figure 1. Industry-Level AI Exposure vs Share of Firms Using AI 12
Figure 2. Share of AI-Involved Firms by Year and Country 17
Figure 3. Share of Firms Using AI by Role in the AI Ecosystem (2016-2024) 18
Figure 4. Share of AI-Involved Firms by Type of AI Technology (2016-2024) 19
Figure 5. Share of AI-Involved Firms by Sector (2016-2024) 20
Figure 6. Spatial Distribution of AI-Involved Firms by Role 22
Figure 7. Selected Skills by Category and Mean Coefficient Magnitude 31
Figure 8. Top 10 AI and Data Skills 33
Appendix Tables 47
Table B.1. Skill Taxonomy 47
Table B.2. Determinants of AI Adoption by Sector 48
Appendix Figures 40
Figure A.1. Confusion Matrix 40
Figure A.2. Industry-Level AI Adoption Shares: Web-Based Indicator vs. Eurostat 41
Figure A.3. Representativeness of Orbis-Istari at the 4-Digit Industry Level 42
Figure A.4. Other AI Roles 43
Figure A.5. Other AI Types 44
Figure A.6. Share of AI-Involved Firms by Industry (2016-2024) 45
Figure A.7. Top 10 Skills by Category 46
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