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Portugal Sees a Surge in AI Adoption with a Promising Economic Impact

TL;DR

  • Portugal sees rapid AI growth, aiming for a 61 billion euro impact by 2030.
  • Portuguese firms invest heavily in AI but need innovation, skills, and accessibility improvements.
  • Public optimism and business gains boost AI prospects in Portugal.

A new independent study titled “Unlocking Portugal’s Ambitions for AI in the Digital Decade,” commissioned by Amazon Web Services (AWS) sheds light on Portugal’s increasing adoption of AI technology and its potential economic impact. 

The study by Strand Partners reveals that 35 percent of Portuguese companies have already integrated AI technology, marking a remarkable 25 percent increase since 2022. If this adoption rate persists, the study predicts an estimated economic impact of 61 billion euros in GVA by 2030, a significant growth within the next six years.

Rapid AI adoption and investment growth

Companies in Portugal have demonstrated a strong appetite for AI technology, with a 25 percent year-over-year growth in AI adoption. Notably, 87 percent of companies are familiar with AI technologies, and 35 percent possess a deep understanding of the technology. 

Furthermore, Portuguese companies have increased their investments in digital technology by an impressive 61 percent since September 2022, surpassing the European average of 51 percent.

Challenges and opportunities

While Portugal’s AI adoption is on the rise, the study highlights three crucial challenges that need to be addressed to fully harness the potential of AI:

Creating an Innovative Environment: Portugal must create an environment conducive to innovation, fostering collaboration and experimentation in the AI sector.

Closing the Digital Skills Gap: The nation faces a shortage of individuals with advanced digital skills. Investing in education and training is vital to equip the workforce with the necessary skills to overcome this.

Ensuring Accessibility for All Companies: To maximize AI’s benefits, it is essential that both large and small enterprises have access to the latest technologies. AI usage is more concentrated in larger companies (45 percent) than SMEs (32 percent).

Positive economic impact of AI

The study reveals that AI adoption has a clear and positive economic impact on Portuguese companies. A striking 70 percent of businesses employing AI technology report increased revenue and productivity. This reflects the transformative power of AI in driving business growth and efficiency.

Public perception and global concerns

Portuguese citizens increasingly recognize AI’s potential in addressing global challenges such as climate change. The study reports that 60 percent of Portuguese citizens believe AI could play a key role in solving these issues, showcasing public optimism about the technology’s capabilities.

Portuguese companies are optimistic about the future impact of AI, with 64 percent believing that AI will significantly transform their respective sectors. Additionally, 77 percent of companies assert that digital technology is essential in achieving their five-year growth objectives.

Cloud AI adoption

Cloud AI adoption is gaining momentum in Portugal, reaching 27 percent in 2023. Notably, 81 percent of Portuguese companies are already familiar with cloud AI technology, slightly below the European average of 85 percent. This indicates Portugal’s growing interest in cloud-based AI solutions.

Amazon Web Services (AWS) has been actively investing in Europe’s economic and digital future, with plans to invest more than 21 billion euros between 2017 and 2022. This investment underscores the importance of the European market and Portugal’s unique opportunity in the AI landscape.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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