What if the price of prediction decreased? Prediction, as you recognize, is not only seeing the current but additionally the longer term, whether or not 5 seconds from now or 5 years from now.
Synthetic intelligence may be considered a prediction machine as a result of it takes data you’ve and delivers data you don’t have.
Traditionally, prediction has been extraordinarily costly, however that’s not true. On this planet of tech, prediction used to require armies of engineers and proprietary information, however now LLMs provide off-the-shelf options at a fraction of the price. As I shared at Attain Europe 2025, the falling price of prediction – very like the dramatic drop in the price of synthetic mild a century in the past when the lightbulb was invented – is creating unprecedented alternatives for innovation and entrepreneurship.
To remain aggressive in such a fast-paced atmosphere, European (and world) companies ought to monitor these three AI mega-trends.
1. The agentic AI revolution in Europe
Regardless of considerations that privateness laws all through Europe would possibly impede agentic AI adoption, my analysis signifies fairly the other. Enterprise capital corporations particularly in the UK and all through Europe – together with Joint Capital, Octopus Ventures, HP Capital, Runa Capital, Episode One, and Instructor Enterprise Development – are actively investing in agentic AI startups throughout the area.
There are already practically two dozen promising agentic AI startups in Europe, with a number of rising from Y Combinator. One standout instance is LightOn, a French startup making important headway in banking, protection, and high-tech markets. These developments sign that the agentic AI explosion is not restricted to Silicon Valley. It is a world alternative that European entrepreneurs are completely positioned to capitalize on.
Understanding the agentic gradient
When discussing agentic AI, I’ve discovered it useful to border the expertise as present on a gradient. This gradient runs from “Waze to Waymo” – from techniques that increase human capabilities to people who really remodel operations by performing with out people.
On the decrease finish of the gradient are copilots and chatbots, which make suggestions however require people to execute them. Like how Waze makes driving suggestions primarily based on site visitors, however the driver in the end drives the automobile. Transferring up, we see clever assistants with extra reasoning capabilities and entry to exterior instruments. Activity brokers – which might full particular actions independently – signify the subsequent degree, with a number of European firms like topo.io out of France creating subtle agentic gross sales growth representatives.
Transferring up the gradient, subsequent comes course of brokers that leverage choice intelligence and might navigate dynamic environments. Lastly, on the prime of the gradient are Techniques of Brokers, which might collaborate with different brokers to ship intensive and extremely sophisticated workflows, taking you from have to vacation spot. An instance of that is Waymo, the system of vehicles launched by Google that may deploy a fleet of self-driving taxis.
Agentic AI is a development I’m significantly enthusiastic about. We should always all be watching intently and exploring how we are able to put these improvements to work for our companies.
2. The reply economic system takes maintain within the UK
Maybe most hanging in my current analysis is how rapidly the “reply economic system” is taking root in Europe, significantly in the UK. Conventional search – primarily based on search engine optimization and web page rankings – is quickly giving solution to generative AI search that delivers solutions quite than hyperlinks. These LLMs aren’t tuned the identical method conventional serps are, and so they don’t have a enterprise mannequin that requires monetizing outcomes and cluttering the person expertise.
The statistics are outstanding: site visitors from generative AI sources like ChatGPT and Perplexity to retailers rose tenfold within the UK between July and September 2024 alone. Whereas conventional search nonetheless accounts for 98% of all queries within the UK, this jogs my memory of being at Yahoo when Google emerged – it wasn’t an enormous deal till all of the sudden it was, disrupting your complete market and taking half our site visitors inside only a few years. And consider software program patrons, who’re often early adopters of any new instruments that may make them extra productive. G2 analysis discovered {that a} third of them report that search was a bottleneck of their shopping for journey.
For European companies, this shift requires new methods. Implementing Generative Engine Optimization (GEO) to restructure web site content material round answering questions quite than simply advertising and marketing merchandise might be essential. Moreover, being proactive about content material distribution and investing in user-generated content material that comprehensively solutions complicated issues will assist firms present up extra ceaselessly in massive language mannequin outcomes.
3. AI adoption: Give attention to utilization
Whereas the alternatives for AI are immense, analysis exhibits that European companies, like their world counterparts, should focus intently on driving utilization to comprehend their return on funding. In line with G2’s evaluation, AI patrons anticipate to realize ROI inside six months, however the important thing to ROI is not implementing AI sooner – it is rising adoption charges. With this in thoughts, sellers should keep laser-focused on utilization with a purpose to forestall buyer churn.
That is why at G2, after we assessment AI merchandise, we now particularly ask reviewers about their utilization fee for AI instruments. This information helps each patrons and sellers perceive what’s working and what is not. For European companies promoting AI options, making utilization administration a prime precedence – pursuing integrations, leveraging display imaginative and prescient applied sciences, and specializing in decreasing “quitting price” – might be important to success.
How one can keep forward of those developments
As the price of prediction continues to fall, European companies have an unprecedented alternative to reinvent themselves. Whether or not it is French startups creating subtle brokers for banking or UK retailers embracing the reply economic system, Europe is demonstrating that it will not be left behind within the AI revolution.
For enterprise leaders trying to keep forward of those developments, my recommendation is easy: make investments now in understanding and implementing agentic AI, put together for the shift to the reply economic system, and focus relentlessly on driving utilization. The businesses that do these items nicely will not simply survive the AI transformation – they’re going to lead it.
The way forward for AI is not simply being written in Silicon Valley. It is being written in London, Paris, Berlin, and dozens of different European innovation hubs. And at G2, we’re dedicated to being your trusted supply of analysis as this thrilling story unfolds.
In the event you missed it, you may view my full session on “The three AI-Mega Developments We’re Watching at G2” and entry each session from Attain on-demand her
