Hungarian SMEs in the world of AI: lagging behind in regional competition
A survey of 11 Central and Eastern European countries shows that Hungarian SMEs are not at the forefront of the adoption of artificial intelligence (AI) compared to their regional competitors. The survey, conducted by the Warsaw-based AI Chamber and surveying over 3,200 companies, paints a worrying picture of the digital readiness of Hungarian SMEs.
Mediocre results, low awareness
According to the survey, which also includes responses from 301 Hungarian companies, only 49% of Hungarian companies assess the business impact of AI positively, placing Hungary in the middle of the region. This is far behind the leading results in Estonia (67%) or the Czech Republic (60%), and even the positive assessment of 70% in neighboring Slovakia.
Of particular concern is the low level of regulatory awareness: only 27% of Hungarian companies are familiar with the provisions of the EU AI Act, one of the lowest in the region. In comparison, 66% of Czech companies and 52% of Polish companies responded that they were aware of the legislation.
High barriers, low interest
The research also highlights that 50% of Hungarian companies face training barriers in the field of AI – one of the highest values in the region. In addition, 41% of companies are not at all interested in implementing AI, which is also a worrying sign for future competitiveness.
“Hungarian companies need intensive business awareness development and education,” the report’s author states. This is in line with the fact that Hungarian companies also have the lowest audit readiness in the region (40%), while 67% of Polish companies feel prepared to audit legal compliance.
Cautious attitude, mixed results
According to the survey, around half of Hungarian companies see the potential of AI positively, which indicates a cautious but not dismissive attitude. 11% of companies fall into the “AI-neutral” segment, which is among the highest rates, along with the Czech Republic and Slovenia.
Interestingly, 35% of Hungarian company management positively assesses the impact of the AI Act on corporate operations, which places the country in the bottom third of the region. This suggests that they do not necessarily see the regulation as an opportunity for development, but rather as a burden.
Opportunities, challenges
According to the report, the following would be key for Hungarian SMEs:
- Intensive digital education and awareness-raising among managers and employees
- Regulatory support and advice to meet the requirements of the AI Act
- Developing public-private partnerships to support AI adoption
- Creating competence centers at the local level
Regional comparison
While Estonia, the Czech Republic and Poland are considered leaders in AI adoption in the region, Hungary is in the middle ground, along with Romania and Bulgaria. This is particularly worrying for competitiveness, the report says, as AI is increasingly becoming a strategic tool in the business world.
The research points out that technology itself is only part of a larger transformation process – changing organizational culture, addressing employee fear and getting management committed are at least as important as the availability of the technology itself.
What does this mean for the Hungarian economy?
The report states that the Central and Eastern European region is at a “key development moment” and AI will no longer be a technological curiosity but an everyday business tool. The current lagging behind of Hungarian companies could jeopardize the competitiveness of the national economy in the long term.
The results of the research clearly indicate that urgent action is needed to improve the AI readiness of the Hungarian SME sector, otherwise the country may fall behind the digital transformation of the region.
The research was conducted by the Warsaw AI Chamber in June 2024, involving 3,259 Central and Eastern European SMEs, including 301 Hungarian ones. The full report is available at www.aichamber.eu.
