Enabling an AI-first European economy
by Debbie Weinstein · GoogleIn County Clare, Ireland, entrepreneur Danilly Carvalho has built something truly special. She’s the founder of IPERA, a skincare brand that’s scaling from the west of Ireland to the world. After joining a skills training program, Danilly used Gemini to analyze complex international consumer trends and completely rebrand her business. Within a year, online sales surged by 45%, and her “local” business expanded into seven countries.
This is just one example of the massive economic potential of this moment. The European Union is one of the world’s largest and most digitally connected economic areas. Across Europe, our partners are turning the potential of AI into measurable progress.
Breaking down our economic impact
To understand the scale of what we can achieve together, today we're releasing Google’s 2025 EU Economic Impact Report, commissioned by Google and developed by Implement Consulting Group. The report shows how Google’s products and platforms, investments in infrastructure, and Cloud and AI technologies contributed more than €200 billion to EU GDP. That’s about 1% of total EU GDP, approaching the contribution of the entire EU agriculture sector.
This impact is broken down across three areas:
- Products and platforms (approx €157 billion): Tools like Search, Ads, Android, Google Play, Chrome, and YouTube connect millions of European businesses to global markets, allow creators to monetize content, and help citizens access essential information and services.
- AI and Cloud (approx €32 billion): Cloud services and artificial intelligence help European enterprises, public institutions, and developers scale infrastructure, optimize operations, and build new capabilities securely within Europe.
- Infrastructure and offices (approx €11B): Our data centers, offices and operations generate direct economic value through local procurement, supply-chain partnerships, and community investments.
Productivity gains
AI productivity gains aren't hypothetical; they're happening across the continent right now. Recent findings by the European Investment Bank show AI is helping to lift labor productivity by an average of 4% across adopting firms without displacing employment.
Take Renault Group. Amidst the rising costs and production pressures of today’s automotive sector, Renault Group is using Google AI to modernize its manufacturing operations and secure their competitiveness. On the factory floor, AI is preventing breakdowns and detecting manufacturing defects in real time, cutting factory downtime and production defects in half. Before this deployment, floor technicians focused the majority of their time hunting for errors rather than fixing them. AI completely flipped the script, turning firefighters into engineers. This shift in efficiency at Renault Group is driving between 100 and 120 million euros in annual savings.
Looking ahead, AI could boost the European economy by €1.2 trillion annually within a decade. But to deliver on this promise, Europe needs a predictable, supportive regulatory environment that champions business success and unlocks growth rather than stifling innovation. It also requires equipping people with the tools to succeed, like Danilly. Since 2014, Google has trained over 13 million people in the EU on essential digital and AI skills.
Google's journey in Europe started 25 years ago with our first employee in Hamburg and has grown to a footprint of 26 offices across 17 member states and eight data centers, supporting over 100,000 European jobs. Our relationship with Europe is one of partnership — we live here, we build here, we’re part of the communities we serve across the continent.
We remain dedicated to working with European institutions, businesses, and communities to ensure this wave of innovation drives inclusive and sustainable growth across the continent.
You can read the full breakdown of data and economic insights in the 2025 EU Economic Impact Report.