Europe’s AI Divide and Montenegro’s Micro Firms
European AI progress largely benefits medium and large firms that invest in software, data, and training. This explainer breaks down what happened, who is affected, and what to do next with plain language and direct sources.
What changed in Europe’s AI landscape for small firms
New evidence highlights a gap between AI productivity gains and the firms that dominate the business landscape. Micro firms, which dominate Montenegro’s business register, are less likely to be early adopters of AI because they have fewer resources for training, software, and data infrastructure.
Key facts about micro firms and AI uptake
- Montenegro’s active business entities: around 63,823 in 2025.
- Awareness of digitalisation programmes: in 2022, 353 SMEs in Montenegro participated, but only about one-third of surveyed firms were aware of such programmes.
Who is affected by this divide
Small, especially micro, firms in Montenegro and similar economies form the majority of firms but face barriers to adopting AI tools. The benefit from AI’s productivity boosts may accrue mainly to larger firms that already have software, data, and training in place. This matters for regional growth, competition, and how Europe thinks about AI policy that helps smaller firms catch up.
Practical next steps for businesses and policymakers
- Support targeted AI adoption programs for micro firms: subsidize training, affordable software, and help with data management.
- Improve outreach: ensure information about digitalisation programs reaches small and micro firms so they can participate.
- Track real outcomes: Monitor how many micro firms use AI in core processes and whether adoption persists after 12 months.
- Pair AI with capabilities: emphasize not just access to tools but training and process changes to realize productivity gains.
Limits of current data and remaining questions
Evidence shows a productivity gap between firms of different sizes, but the effects on local economies depend on implementation and support. Questions remain about how best to design policies that help tiny firms adopt AI, and how to measure long-term impacts beyond initial adoption.
Which sources did Setup in Bahrain review?
Setup in Bahrain reviewed the following source material before preparing this explanatory article.
The links remain visible so readers can inspect the evidence, compare dates and context, and confirm current requirements with the relevant authority.
- socialeurope.eu — evidence source reviewed for this article.
Information and responsibility notice: This article is general information based on the cited material available when published. It is not legal, tax, immigration, medical, financial, banking, or investment advice; it does not create a professional-client relationship; and it is not a guarantee of outcome, availability, accuracy, or eligibility. Rules, schedules, prices, and third-party information can change. Confirm material decisions with the relevant authority and an appropriately qualified adviser before acting.