Euro-Area Companies Shun External Funding for AI Investments

A new survey from the European Central Bank found that 72% of euro-area companies planning to invest in AI expect to use their own internal funds, rather than external sources.

The ECB's SAFE survey asked firms how they planned to finance AI investments over the next 12 months, with nearly three-quarters choosing internal funding.

This approach stands out from the global trend, where AI investment is often associated with large-scale external funding requirements, such as bonds and private credit.

The ECB notes that while internal funding can provide flexibility and independence for companies, it also limits their ability to scale up AI adoption quickly.