The report, which is based on benchmarking of 3,000 of the world’s largest companies, said European companies improved their AI readiness by a score of 1.6 points over the previous six months, compared with 1.1 points in North America.

However, North American companies were ranked at an average 48.9 out of 100 for AI readiness, compared with 43.1 in Europe.

AI readiness is defined in the report as having the essential capabilities that are required to maximise value from AI, such as having access to quality data, employing a skilled workforce and having appropriate processes in place.

The report said that the largest European companies, defined as those with annual revenues exceeding $10bn, were just 2.1 points being their North American counterparts at 47.4 points to 49.5, while smaller European companies lagged behind North America at 40.5 points versus 48.1.

Firms based in the UK, France and Spain had the largest improvements in AI readiness over the six months measured by the barometer, with insurance, travel and consumer goods the best performing industries.

Mauro Macchi, chief executive officer for Europe, Middle East, and Africa at Accenture, said: “Europe is clearly building real momentum in AI, mainly driven by its largest companies. They understand that for AI to deliver more value, faster, it requires enterprise-wide reinvention, not just plug-and-play adoption.

“This means rethinking operating models, redesigning how work gets done, strengthening their data and technology foundations, and most importantly ensuring leadership engagement and proper governance and change management. The speed of execution will define Europe’s future competitiveness.”