A new report by the AI Chamber, based on insights from more than 3,200 small and medium-sized enterprises (SMEs) across Central and Eastern Europe (CEE), paints a striking picture of the region’s AI readiness: while over 75% of businesses say they are using artificial intelligence, only 25% are doing so at scale.

Titled “How Do SMEs in CEE Find Their Way in the World of AI?”, the study maps out how AI is reshaping operational workflows across 11 CEE countries – but also where gaps in leadership, talent, and regulatory awareness are holding many companies back.

The report uncovers four dominant mindsets shaping AI readiness in the region: Practical Optimists, Aware with Barriers, AI Indifferent, and Digitally Withdrawn. These categories reflect more than technological maturity – they reveal how vision, organizational structure, and risk appetite determine success or stagnation.

“This report challenges the prevailing myth that AI adoption is simply a matter of access to technology. The decisive factor is organizational maturity – leadership clarity, talent readiness, and strategic intent,” says Tomasz Snażyk, CEO of the AI Chamber.

“CEE’s SMEs could become global frontrunners in applied AI – if supported by the right regulatory frameworks and education initiatives. The opportunity is real. So is the risk of being left behind.”

Practical applications dominate, but strategic use remains rare

According to the report, the top three use cases of AI among SMEs in the region are data analysis (40%), automatic translation (35%), and task automation (28%) – indicating a focus on efficiency rather than transformation. More advanced applications like predictive analytics or AI-enhanced product development are far less common.

Notably, Estonia and Poland show more mature use cases, particularly in areas like customer behavior tracking and forecasting – suggesting that a small but growing cohort of regional players are moving beyond basic AI adoption into more data-driven decision-making.

However, only 8% of all SMEs surveyed are ready for an upcoming AI audit – a key requirement under the EU AI Act. In fact, just 39% of AI-using companies report even being familiar with the legislation, dropping to 29% among smaller and lower-tech firms.

Size matters – and so does vision

The data highlights a strong correlation between company size and AI maturity. SMEs with between 50–250 employees are far more likely to use AI strategically, have regulatory awareness, and invest in upskilling their teams. At the opposite end, micro-enterprises (under 10 employees) often lack the capacity, leadership bandwidth, or digital talent to take full advantage of AI opportunities.

Encouragingly, 61% of employees across the region are actively experimenting with AI tools in their day-to-day work. This bottom-up momentum is strongest in Poland and the Czech Republic, pointing to a grassroots wave of innovation that could help close the readiness gap – if matched by investment from leadership.

Still, one in four firms has taken no steps to upskill their workforce in AI-related competencies. That training gap is a red flag for policymakers, particularly as generative AI continues to reshape white-collar industries.

Fragmented AI landscape across CEE

Perhaps the most urgent takeaway from the report is the stark digital divide within CEE itself.

• Estonia emerges as the clear frontrunner, with 67% of companies reporting a positive AI impact and 65% familiar with the EU’s AI Act. Estonian firms also report among the lowest internal barriers to implementation, thanks to strong digital governance and high awareness.
• Slovakia and Poland also rank high in AI ambition: 70% and 65% of SMEs, respectively, want to expand their use of AI in the near future.
• In contrast, Croatia, Latvia, and Bulgaria show significantly lower levels of adoption and readiness. In Croatia, nearly a third of SMEs express no interest in using AI at all, while in Bulgaria, over half cite a lack of knowledge as a major barrier.

Even within high-growth markets like Poland, the ambition-execution gap is visible. While over half of SMEs there see AI as a competitive advantage, 35% report no current intent to adopt it, despite employee enthusiasm.

Regional crossroads

The timing of the report is critical. As global investment in AI is projected to soar from $189 billion in 2023 to $4.8 trillion by 2033 (UNCTAD), the world’s economic power centers are already shifting. More than 60% of AI patents and R&D funding are now concentrated in the U.S. and China, putting pressure on Europe—and CEE in particular – to define its AI trajectory.

For the AI Chamber, this moment represents both a risk and an opportunity.

“The window for CEE to define its digital future is open – but not indefinitely. The question facing governments, investors, and SMEs alike is no longer whether to embrace AI, but how quickly, how safely, and how strategically it can be done – before the gap with global leaders becomes irreversible.” – concludes Tomasz Snażyk.

Download the Full Report

👉 aichamber.eu/report/how-do-smes-in-cee-find-their-way-in-the-world-of-ai

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WASHINGTON — The State Department is warning U.S. diplomats of attempts to impersonate Secretary of State Marco Rubio and possibly other officials using technology driven by artificial intelligence, according to two senior officials and a cable sent last week to all embassies and consulates.

The warning came after the department discovered that an impostor posing as Rubio had attempted to reach out to at least three foreign ministers, a U.S. senator and a governor, according to the July 3 cable, which was first reported by The Washington Post.

The recipients of the scam messages, which were sent by text, Signal and voice mail, were not identified in the cable, a copy of which was shared with The Associated Press.

“The State Department is aware of this incident and is currently monitoring and addressing the matter,” department spokeswoman Tammy Bruce told reporters. “The department takes seriously its responsibility to safeguard its information and continuously take steps to improve the department’s cybersecurity posture to prevent future incidents.”

She declined to comment further due to “security reasons” and the ongoing investigation.

It’s the latest instance of a high-level Trump administration figure targeted by an impersonator, with a similar incident revealed in May involving President Donald Trump’s chief of staff, Susie Wiles. The misuse of AI to deceive people is likely to grow as the technology improves and becomes more widely available, and the FBI warned this past spring about “malicious actors” impersonating senior U.S. government officials in a text and voice messaging campaign.

The hoaxes involving Rubio had been unsuccessful and “not very sophisticated,” one of the officials said. Nonetheless, the second official said the department deemed it “prudent” to advise all employees and foreign governments, particularly as efforts by foreign actors to compromise information security increase.

The officials were not authorized to discuss the matter publicly and spoke on condition of anonymity.

“There is no direct cyber threat to the department from this campaign, but information shared with a third party could be exposed if targeted individuals are compromised,” the cable said.

The FBI has warned in a public service announcement about a “malicious” campaign relying on text messages and AI-generated voice messages that purport to come from a senior U.S. official and that aim to dupe other government officials as well as the victim’s associates and contacts.

This is not the first time that Rubio has been impersonated in a deepfake. This spring, someone created a bogus video of him saying he wanted to cut off Ukraine’s access to Elon Musk’s Starlink internet service. Ukraine’s government later rebutted the false claim.

Several potential solutions have been put forward in recent years to the growing misuse of AI for deception, including criminal penalties and improved media literacy. Concerns about deepfakes have also led to a flood of new apps and AI systems designed to spot phonies that could easily fool a human.

The tech companies working on these systems are now in competition against those who would use AI to deceive, according to Siwei Lyu, a professor and computer scientist at the University at Buffalo. He said he’s seen an increase in the number of deepfakes portraying celebrities, politicians and business leaders as the technology improves.

Just a few years ago, fakes contained easy-to-spot flaws — inhuman voices or mistakes like extra fingers — but now the AI is so good, it’s much harder for a human to spot, giving deepfake makers an advantage.

“The level of realism and quality is increasing,” Lyu said. “It’s an arms race, and right now the generators are getting the upper hand.”

The Rubio hoax comes after text messages and phone calls went to elected officials, business executives and other prominent figures from someone who seemed to have gained access to the contacts in Wiles’ personal cellphone, The Wall Street Journal reported in May.

Some of those who received calls heard a voice that sounded like Wiles, which may have been generated by AI, according to the newspaper. The messages and calls were not coming from Wiles’ number, the report said. The government was investigating.