How AI Can Aim and Reduce the Annual Amount of Energy Consumption in European SMEs

Small and medium-sized enterprises (SMEs) are essential to the European economy but face challenges in optimizing energy use due to limited resources and expertise. Rising energy costs and strict EU regulations have made energy efficiency a priority. This study examines how artificial intelligence (AI) can reduce energy consumption in European SMEs. AI technologies, like machine learning and predictive analytics, enable accurate forecasting and real-time energy optimization. Using OECD and Eurostat data, the study found that SMEs adopting AI reduce energy consumption by 12%, with manufacturing SMEs achieving up to 18%. Key barriers include high upfront costs, technical expertise gaps, and integration challenges. The study emphasizes AI's potential for improving energy efficiency, competitiveness, and sustainability in SMEs, calling for more accessible AI tools and supportive policies.