KBRA Releases Research – AI Adoption and European Sovereign Credit Analysis

31 Mar 2025 | Dublin

KBRA releases research that examines the potential impact of artificial intelligence (AI) integration on European sovereigns and how it may contribute to renewed economic vitality across the region. While the rapid advancement of AI contrasts sharply with Europe’s slow growth and underwhelming innovation performance, it also offers a possible solution to many of the structural rigidities that have long hindered the continent’s economic momentum and fiscal reform efforts. From a sovereign credit perspective, KBRA explores how AI adoption could influence several core components of credit risk analysis.

Key Takeaways

Europe's growth is sluggish, with declining trend growth; AI could boost labour market efficiency.
AI may strengthen fiscal metrics by supporting growth and increasing revenues.
Slow tech adoption in Europe means AI’s economic benefits may take time to emerge.

Click here to view the report.