PwC Luxembourg Survey Highlights Growing Maturity of AI Market

PwC Luxembourg recently released the third edition of its survey results concerning the use of data analytics and artificial intelligence (AI) in Luxembourg.

PwC Luxembourg has conducted the third edition of this study to gather insights on the use of data & AI technologies in the Grand Duchy. The last study was conducted in 2021 and highlighted how Luxembourg is increasingly data-driven, while facing a challenging talent and investment landscape.

PwC Luxembourg considered this the right time to revisit the topic, due to the EU AI Act expected in summer 2023 and the explosion of generative AI solutions on the market. The study continued to track the maturity in data and analytics of Luxembourg’s organisations, including the most common applications and challenges that they are facing in 2023.

Thanks to an increased rate of respondents, PwC Luxembourg has reported having captured data from organisations in Banking, Asset & Wealth Management, the public sector, insurance and operational companies for the first time. They also collected their opinions and wishes regarding the European AI Act, and their outlook on the impact generative AI has on Luxembourg.

The full report provides an analysis of data & AI use in Luxembourg. Some reported key trends included:  a high uncertainty regarding the AI Act (with only 12% of respondents feeling well informed about the European AI Act); strong variation between sectors in the level of maturity of data governance practices (the public sector considered itself most mature in data governance, while the asset and wealth management sector reporting a less mature data governance approach); growing maturity of the AI market and available applications (15% rise in the use of external AI tools by organisations surveyed compared to the year 2021); strong differences between sectors concerning the use of data & AI (respondents from the funds industry are reporting less maturity in topics around data governance and machine learning, compared to banking and insurance and the public sector is more inclined to internally develop proof of concept (POCs), while less frequently using data storytelling). The surveyed companies were interested in the topic, but not yet ready to incorporate the technology deeply into their daily operations.

Thierry Kremser, Data & AI Leader at PwC Luxembourg, said: “We are living in the age of generative AI. ChatGPT is already the fastest growing internet application of all time and has opened the public’s imagination to the possibilities - and risks - of AI. In this report we show where Luxembourg’s financial and non-financial sectors stand on this technology, and how it is integrated in their strategy.”

Andreas Braun, AI & AI Lab Leader at PwC Luxembourg, commented: “Is the European AI Act a constraint or a catalyst for Luxembourg? Our respondents are optimistic about an increase in competitiveness, but wary of the increased administrative burden. In this truly exceptional age of AI times, more than 50 organisations in Luxembourg provided us with their view on data and  AI in our country, leading to an exceptional depth of insights.”

The full report is available at: https://www.pwc.lu/en/advisory/digital-tech-impact/analytics/data-analytics-and-ai-survey-luxembourg-2023.html.