Europe’s data analytics and AI market is entering a phase of rapid enterprise adoption as modern data platforms, unified governance, and adaptive systems reshape how organizations deploy AI, according to a new report published by Information Services Group (ISG), a global AI-centered technology research and advisory firm.
With Europe’s regulatory environment emphasizing governance, transparency, and accountability, organizations have started treating analytics and AI as core enterprise capabilities. As a result, businesses are moving beyond pilot projects and are increasingly implementing production-grade AI initiatives that align with strategic business priorities.
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The 2025 ISG Provider Lens Advanced Analytics and AI Services reports for Europe reveal that enterprises are shifting decisively from experimentation to real-world AI applications. Economic uncertainty, supply chain disruptions, sustainability mandates, and persistent talent shortages have increased reliance on data-driven decision-making. Meanwhile, growing regulatory alignment around the EU AI Act, EU Data Act, and data localization and sovereign cloud requirements is strengthening responsible innovation across the region.
“Europe’s regulatory environment has made governance, transparency and accountability essential to enterprise AI adoption,” said Matthias Paletta, director at ISG. “Under this framework, organizations have begun to treat analytics and AI as foundational enterprise capabilities.”
According to the report, European enterprises are modernizing their data estates to support scalable AI adoption. They are transitioning from siloed architectures toward unified data platforms based on data fabric and data mesh models. These approaches improve data consistency, lineage, and trust across enterprise systems, enabling faster access to insights across operations, finance, supply chain, and customer experience functions.
Moreover, advanced AI adoption is expanding across Europe through integrated forecasting and simulation, deep learning, computer vision, and agentic systems. These technologies support higher automation levels and enable more context-aware decision intelligence across enterprise functions. Additionally, demand for sector-specific AI solutions is rising, which is prompting more joint innovation between enterprises and service providers.
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The report also highlights that organizations recognize data and AI deliver greater value when business users can directly access and act on AI-driven insights. Therefore, enterprises are emphasizing trusted and governed data environments that empower non-technical users through self-service analytics, natural language interfaces, and embedded AI features. This balance supports democratization while maintaining strong governance and accountability.
“As AI adoption scales across enterprises, data maturity becomes a pivotal success factor,” said Saravanan M S, senior lead analyst, ISG Provider Lens Research, and lead author of the report. “Enterprises are prioritizing initiatives that build organizational confidence and transparency through AI literacy programs.”
The report further explores market trends such as the development of the AI factory model as a strategic blueprint and growing focus on autonomous analytics capabilities.
For 2025, ISG Provider Lens released two Advanced Analytics and AI Services reports for Europe: one assessing large and midsize providers and another evaluating specialist providers. The Large and Midsize report assesses 56 providers across four quadrants, naming Accenture, Atos, Capgemini, Cognizant, EXL, GFT, HARMAN, HCLTech, IBM, Infosys, Merkle, Mphasis, Orange Business, Persistent Systems, Reply, TCS, T-Systems, Unisys, Virtusa, and Wipro as Leaders in two quadrants each. Hexaware and Stefanini are also named Leaders in one quadrant each. Additionally, Avenga and DXC Technology are recognized as Rising Stars in two quadrants.
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