Most euro-area companies planning to invest in artificial intelligence expect to finance those projects primarily with their own cash rather than external capital, according to new European Central Bank survey data.
An ECB blog published Friday said 72% of firms planning AI investment expect to use internal funds such as cash flow or retained earnings. The analysis was based on responses from about 5,000 companies in the Survey on the Access to Finance of Enterprises.
Bank loans play a secondary role
Only 16% of firms said they expect to use bank loans, while another 16% cited grants and 16% mentioned leasing. Equity and venture capital were selected by 6% of respondents, and just 1% expected to issue debt securities.
The ECB researchers said more than 80% of firms planning AI investment expect to use only one financing instrument. Internal funds dominate that group.
Intangible investment is harder to finance
The financing mix changes depending on what companies plan to buy. Firms investing in hardware or data infrastructure are more likely to combine internal and external financing because those assets can often serve as collateral.
Spending on AI specialists, software and employee training is harder to finance externally because it produces fewer tangible assets for lenders to secure.
The ECB blog argued that heavy reliance on internal funds could limit how quickly European firms adopt AI, particularly smaller businesses without large cash reserves. The authors said Europe’s financing framework may need to become more supportive of intangible investment if the region wants faster AI diffusion.
The blog represents the authors’ analysis and does not necessarily reflect the official position of the ECB or Eurosystem.
Sources: European Central Bank Blog, Oct. 2, 2026; Reuters.
