The EU’s new Artificial Intelligence Act (AIA), which came into force in 1 August 2024, will have a profound impact on organisations developing, using, distributing and importing artificial intelligence (AI) systems in the EU. With this new regulatory framework in mind, law firm CMS surveyed Central and Eastern Europe (CEE) companies to understand how they are engaging with AI as well as the opportunities and risks the technology is presenting for their business.
CEE seeing widespread AI adoption
According to CMS’s survey results, 84% of CEE companies are already using AI systems, with 60% of businesses investing in these systems and a further 20% planning to do so. When asked about the intensity of use, 17% of survey respondents described themselves as “heavy users” and 43% said they “use AI to some degree”.
Olga Belyakova, Partner and Co-Head of TMT in CEE at CMS, comments:
“Although AI is becoming increasingly mainstream, incorporating its use into standard operating practices is not always straightforward for businesses. Top of agenda for companies is the need to identify who is going to be responsible for implementing new AI systems so that everyone can use them consistently and compliantly. This is especially important as the AIA will apply significant financial penalties for infringements – up to €35m or 7% of global annual turnover. As a result, I expect many will go above and beyond in terms of compliance, to ensure they stay on the right side of these new regulations.”
AI education in the spotlight
Despite the widespread adoption of AI, 94% of companies acknowledged that more AI knowledge/training is needed – with 40% citing “more training” on AI as one of the top factors affecting CEE companies as a result of the AIA coming into force.
When asked about the current AI literacy (knowledge and skills) within their organisations, 12% of survey respondents described it as “high”, 39% described it as “moderate”, and 39% described it as “low” or “very low”. In total, 43% of respondents said they only had a “basic understanding” of AI.
Dora Petranyi, CEE Managing Director and Global Co-Head of the Technology, Media and Communications Group at CMS, comments: “Among its many impacts, the AIA ascribes responsibility for AI literacy education to employers. This is an important change that’s set to come into effect from 2 February 2025. As a result, AI training and education should be top of mind for all businesses, and we expect it will become part of induction training for all organisations. Although prescribed by these regulations, getting this training right represents an exciting opportunity for businesses to maximise the impact of AI.”
AI uptake across sectors
The sector with the highest level of AI adoption is Information Technology (74%) and following close behind is Telecoms and Media (55%). Other sectors with significant AI adoption rates include Banking & Finance (47%) and Retail and E-commerce (40%).
Eva Talmacsi, Global M&A and Corporate Transactions Partner and Co-Head of TMT in CEE at CMS, comments: “In terms of a businesses to watch, data centres are extremely well positioned to benefit from the increased focus on training and delivering AI solutions. These both require enormous amounts of computing power and data storage and, as more and more companies embrace the technology, we are going to see an exponential increase in the demand for datacentre capacity. Forecasts predict the data centre boom is set to continue.”
About the CMS Digital Horizon: Responsible AI report
CMS’s Digital Horizon: Responsible AI report explores findings from the firm’s AI survey, which received over 100 survey responses from companies across CEE, including Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Kosovo, Lithuania. Latvia, North Macedonia, Montenegro, Poland, Romania, Serbia, Slovenia, Slovakia and Ukraine.
The CMS Digital Horizon series is available here.
For further information, please contact:
Darina Gordienko
E: darina.gordienko@cms-cmno.com
T: +38044 391 3377
Notes to editors:
CMS
Founded in 1999, CMS is an international organisation of independent law firms that offers full-service legal and tax advice. With 84 offices in over 45 countries across the world and more than 5,800 lawyers, CMS has long-standing expertise both in advising in its local jurisdictions and across borders. From major multinationals and mid-caps to enterprising start-ups, CMS provides the technical rigour, strategic excellence and long-term partnership to keep each client ahead in its chosen markets.
The CMS member firms provide a wide range of expertise across 19 practice areas and sectors, including Corporate / M&A, Energy & Climate Change, Funds, Life Sciences & Healthcare, TMC, Tax, Banking & Finance, Commercial, Antitrust, Competition & Trade, Dispute Resolution, Employment & Pensions, Intellectual Property and Real Estate.
For more information, please visit cms.law.
