The slow pace of digital transformation among small and medium-sized enterprises (SMEs) is increasingly becoming a competitiveness challenge for the Greek economy.
Despite progress in digital infrastructure, Greece’s performance in business digitalization continues to lag behind the European Union average, according to the European Commission’s State of the Digital Decade 2026 report. The gap extends beyond connectivity and online presence to the adoption of technologies directly linked to productivity, innovation and competitiveness.
The Commission noted that low levels of digital maturity are limiting businesses’ ability to capitalize on emerging technologies, while shortages in digital skills and ICT specialists are restricting access to qualified talent.
SMEs remain behind EU peers
The challenge is more intense among SMEs. In 2025, only 55.95% of Greek SMEs achieved at least a basic level of digital intensity, compared with 71.39% across the EU. While Greece has improved significantly from 43.26% in 2023, it remains well below the European average.
The gap is even wider at the highest levels of digital maturity. SMEs with a very high digital intensity score accounted for just 5.91% in Greece, compared with 9.07% in the EU. According to the Commission, considerable room for improvement remains, particularly in the advanced digitalization of smaller businesses.
The report warned that limited digital maturity among SMEs could act as a brake on digital growth and productivity at a time when Greece is investing heavily in digital infrastructure, public digital services, artificial intelligence and data-driven technologies. In effect, the country is building digital capabilities and regulatory frameworks, but a large part of its business base is not yet prepared to fully utilize them.
AI, cloud and data analytics adoption rates remain weak
The gap becomes more evident in the adoption of advanced technologies.
Data analytics tools were used by 31.45% of Greek businesses in 2025, compared with 39.85% in the EU. Among SMEs, the figure stood at 30.82%, while adoption rates among large enterprises reached 74.17%.
Cloud computing presents an even greater challenge. Only 21.25% of Greek businesses had adopted cloud technologies, less than half the EU average of 46.69%. Among SMEs, adoption rates stood at 20.58%, compared with 66.45% in large companies.
The most concerning issue was recorded in terms of the use of artificial intelligence. In 2025, just 8.93% of Greek businesses were using AI technologies, compared with 19.95% across the EU. The figure for Greece actually declined from 9.81% in 2024, even as AI adoption rates across the European Union increased by 48% year-on-year.
Among SMEs, AI usage fell to 8.51% from 9.53% a year earlier. By contrast, adoption among large enterprises rose sharply to 37.58%, from 24.27%.
The figures suggest that AI is not spreading evenly across the Greek economy. While larger companies are accelerating adoption, smaller firms continue to lag behind despite AI’s growing importance as a driver of productivity and competitiveness.
This decline comes even as Greece places artificial intelligence at the center of its digital strategy through initiatives such as the AI Factory Pharos and a range of new AI-focused projects.
Overall, 40.76% of Greek businesses used at least one of three key technologies—AI, cloud computing or data analytics—in 2025, compared with 63.2% across the EU. The figure stood at 40.14% for SMEs and 83.33% for large enterprises, highlighting a dual gap: between Greece and Europe, and between large and smaller businesses within the country.
Skills shortage remains a key obstacle
The European Commission attributes the slow progress of SMEs to several factors, including limited capacity to absorb available support programs, particularly among smaller firms, insufficient digital skills and administrative barriers that continue to delay progress toward the EU’s 2030 targets.
Human capital remains a critical challenge. ICT specialists account for just 2.5% of total employment in Greece, compared with 5% across the EU. The Commission identifies the shortage of ICT professionals as one of the most pressing challenges facing Greece’s digital transition.
The broader deficit in digital skills is the main problem. In 2025, only 50.96% of Greeks aged 16-74 possessed at least basic digital skills, compared with 60.40% across the EU. Moreover, the share declined by 1.4% compared with 2023, while the EU average increased by 4.3%.
For businesses, this translates into a smaller pool of workers capable of supporting the adoption of more sophisticated digital tools and technologies.
Public support and future priorities
The Commission acknowledges that Greece has launched several support initiatives. The “Digital Tools for SMEs” program, financed through the Recovery and Resilience Facility, had supported 101,960 SMEs by February 2026.
In parallel, the “Research – Innovate 2021-2027” program is funding 72 digital technology projects worth 50.16 million euros, focusing on areas such as artificial intelligence, data technologies and Industry 4.0 applications.
At the same time, Greece continues to invest in digital infrastructure and advanced technologies through initiatives including AI Factory Pharos, new data center investments, quantum communications projects and the establishment of the Hellenic Chips Competence Centre for semiconductors.
In its recommendations, the European Commission calls on Greece to accelerate SME digitalization, strengthen the adoption of innovative technologies and create stronger incentives enabling smaller businesses to benefit from the growing public and private investments directed toward advanced digital technologies.
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