Europe's established tech firms emerge as unexpected AI winners

Europe's established tech firms, including SAP, Capgemini, Sopra Steria, and OVHcloud, are emerging as unexpected AI winners, according to recent earnings reports. The AI boom was initially expected to favor new companies building AI models, but now these well-established technology groups are experiencing stronger demand, faster growth, and upgraded outlooks as businesses move from experimenting with AI to deploying it across their operations.

The challenge lies in making AI work effectively within complex organizations, as large companies are unlikely to rely on a single AI provider. Instead, they are expected to use different models for various tasks depending on performance, security, and regulatory requirements. The complexity of integrating AI systems with existing software, data, and business processes is becoming a significant constraint on AI adoption.

Brief written by urgent.news from Channel News Asia's own syndicated text. Machine-written — may contain errors; check the original before relying on it.