Europe risks startup exodus as regulation, funding and skill gaps hamper AI adoption, AWS EMEA head says
QQQ•AWS EMEA Managing Director Tanuja Randery said nearly four in 10 European startups would consider leaving the region to scale, rising to more than half among the fastest-growing. She cited regulatory hurdles, funding shortages and workforce skill gaps.
1. Startups weigh relocation
Randery said nearly four in 10 European startups would consider leaving the region to scale, citing an AWS survey; the share rises to more than half among the fastest-growing. Startups are reconsidering locations because they want more funding and support, she said.
2. Compliance and AI adoption
European businesses have told AWS they could spend as much as 40 cents of every euro on regulatory compliance instead of technology, Randery said. More than half of businesses in Europe use AI, but only one in five have a clear AI strategy, an AI governance model and processes invested in reshaping operations, she said.
3. Limits on AI progress
Randery said European businesses need to invest in AI inference, the stage when trained models generate outputs for real-world use. She cited the EU’s AI Act and severe energy and grid constraints as challenges, and said progress and safety should go together.
