Predicting Enterprise AI Adoption in Europe from Cloud Sophistication, Digital Sales Capabilities, and Enterprise Size

This paper examines whether broad enterprise AI adoption in Europe is best understood as an isolated technology decision or as the outcome of a wider bundle of digital capabilities. Using harmonized Eurostat data for European enterprises, the analysis builds a repeated cross-section at the country–size-class–year level and models high AI adoption with a combination of random forest and elastic-net estimation. The dependent variable captures enterprises using at least one AI technology, while the explanatory set focuses on cloud adoption, cloud CRM, cloud ERP, cloud database hosting, cloud security, cloud software use, e-sales intensity, and enterprise size. The findings reveal a stable predictive structure and consistent classification performance across specifications. Across models, cloud CRM and e-sales emerge as the strongest predictors of high AI adoption, followed by general cloud use and selected data-related cloud capabilities. This ordering remains largely stable in threshold-sensitivity checks based on alternative definitions of high adoption. The pattern also remains visible when country controls are removed, which suggests that the result is not merely a reflection of national heterogeneity. The paper contributes by shifting attention from broad claims about “digital readiness” to a narrower and more operational notion of capability complementarity: AI uptake tends to cluster where firms already possess customer-facing, cloud-based, and commercially digital infrastructures. In that sense, the paper offers a transparent, reproducible, and policy-relevant account of the digital foundations of enterprise AI adoption in Europe.