Artificial intelligence was widely expected to create the biggest opportunities for the companies developing the underlying models. However, recent corporate results indicate that some of Europe’s long-established technology businesses are becoming major beneficiaries as enterprises accelerate AI adoption.
Companies including SAP (TG:SAP), Capgemini (EU:CAP), Sopra Steria (EU:SOP) and OVHcloud (EU:OVH) have all reported improving demand, stronger financial performance or more optimistic guidance as businesses shift from AI experimentation to large-scale implementation.
Integration is becoming the real AI challenge
As organisations expand their use of artificial intelligence, they are discovering that integrating AI into existing systems is proving far more difficult than simply accessing the technology itself.
Rather than depending on a single AI platform, many companies are expected to combine multiple models, selecting different solutions according to performance, security and regulatory requirements. As a result, the key challenge is no longer choosing the best model, but ensuring AI works seamlessly alongside existing software, corporate data and established business processes.
“AI applications are the battleground, and that is where most value will be created,” UBS said in a recent note.
This trend favours Europe’s established software providers, consulting firms and cloud infrastructure companies, whose expertise has long centred on integrating complex enterprise technologies.
Legacy systems create opportunities for technology specialists
Most large organisations operate with decades-old software, fragmented databases and heavily customised applications. Introducing AI into these environments requires systems that can securely access live company data, comply with governance rules, maintain audit trails and integrate into existing employee workflows.
Managing this complexity is becoming one of the biggest barriers to wider AI deployment. According to Boston Consulting Group, AI implementation is advancing faster than companies’ ability to manage it effectively, with more than 70% of investors expressing concern over whether businesses possess the technical and operational capabilities needed to succeed.
As deployment accelerates, spending is increasingly shifting towards implementation, systems integration and governance rather than simply purchasing AI models.
Enterprise software groups benefit from growing investment
SAP reported a 26% increase in its cloud backlog at constant currencies to €22.9 billion as customers continued migrating finance, procurement, supply chain and human resources systems onto cloud platforms that increasingly support AI applications.
Its acquisitions of data specialist Dremio and AI company Prior Labs further demonstrate the importance of preparing enterprise data for AI-driven workflows.
Capgemini increased its annual growth guidance after bookings rose 9.2%, while Sopra Steria upgraded its outlook following organic growth of 5.3%.
Both companies are benefiting from demand for AI implementation services, including workflow integration, data management and governance frameworks.
These capabilities are particularly valuable in industries such as defence, aerospace, healthcare and critical infrastructure, where AI solutions must operate within highly specialised software environments and strict regulatory controls.
European AI infrastructure gains strategic importance
A second development is strengthening the position of Europe’s established technology providers: customers increasingly want greater control over how AI is deployed.
Publicis Chief Executive Arthur Sadoun has said clients increasingly want advanced AI models operating within environments where they retain control over their technology and their data.
This preference is particularly evident in defence, aerospace and critical infrastructure, where sovereignty, cybersecurity and regulatory compliance are major priorities.
Airbus (EU:AIR) recently selected Scaleway, owned by French telecommunications group Iliad, alongside AI technology developed with Mistral for sensitive industrial and defence workloads. Around 70 critical Airbus applications are expected to operate on Scaleway by the end of 2028.
Meanwhile, OVHcloud reported 20.2% growth in public cloud revenue during its third quarter, suggesting rising demand for European-based AI infrastructure that is not subject to extraterritorial legislation such as the U.S. Cloud Act.
AI’s biggest winners may extend beyond model developers
Europe’s established technology companies must still demonstrate that AI-related demand can remain durable and that profitability can withstand increasing automation of lower-value consulting and software services.
Even so, recent earnings suggest the benefits of artificial intelligence are spreading well beyond companies building foundation models. Increasingly, the biggest opportunities may lie with businesses that enable AI to function effectively inside large, complex organisations.
Leave a Reply