The UK and Germany lead the European nations on AI adoption and confidence, with 21% of businesses in both markets viewing the technology as critical, according to Zoho’s 2026 Europe Digital Health Study.
The study, conducted by Censuswide across the UK, France, Germany, Spain, and the Netherlands, revealed that Spain and the Netherlands trail the pack on AI confidence at 14% and 12%, respectively.
In the UK, 35% of organisations were rated as having good 'digital health' in 2026 – up seven percentage points from 28% in the previous study.
Across all European businesses surveyed:
- 17% see AI as critical and are already using it.
- 31% view AI as very important and are planning heavy investments.
- 31% have piloted AI with some success.
However, adoption is heavily tied to overall digital maturity. While 43% of European businesses with good digital health see AI as critical and are deriving clear value, just 3% of those with poor digital health report the same.
Digital transformation blockers remain widespread across Europe, with 86% of respondents citing challenges. The top three barriers are the time and effort needed to implement tools (30%), employee adoption (28%), and a reliance on external help (27%).
Regarding ROI, 19% of businesses surveyed say they are not getting sufficient return on investment (ROI) from their new technology investment.
Sridhar Iyengar, Managing Director, Europe, Zoho, said: “The AI ROI gap between businesses with good and poor digital health is the defining finding of this year's study. For years, businesses have been asking whether to invest in AI. The question they should have been asking is whether they are ready for it. Readiness means centralised, accessible data. Integrated systems.
“A digitally capable workforce. A culture of change. Without those foundations, even the most sophisticated AI tools underperform. With them, the returns can be exceptional and the data proves it."
Recently, a study revealed that one in seven people are turning to AI chatbots for health advice rather than visiting their GP. Researchers fear it is creating “an unregulated AI healthcare system”.
