Study: German SMEs Want AI, But Distrust Overseas Providers

Two-thirds of SMEs in Germany have a positive view of AI. At the same time, more than half fear that their data will end up in the U.S. or China. This is according to a digitalization study by IONOS and YouGov.

Study: German SMEs Want AI, But Distrust Overseas Providers

Karlsruhe, April 14, 2026.Two-thirds of small and medium-sized enterprises (SMEs) in Germany have a positive view of AI. At the same time, more than half fear that their data will end up in the U.S. or China. This is shown by the annual digitalization study conducted by IONOS, Europe’s leading digitalization partner, in collaboration with YouGov*.

AI Skepticism Gives Way to Optimism – Data Control Must Be Preserved

For a long time, German SMEs—the backbone of the German economy—were considered hesitant when it came to digitalization. Too little budget, too much uncertainty. Now things are changing. A total of 65%** of the companies surveyed have a positive view of AI. 42% describe the momentum in their company as optimistic, 23% as curious. Only 8% feel overwhelmed by the development. But this optimism is tied to one key condition: control over their own data must be maintained.

The trust paradox: Innovation yes, but only from Europe

This openness is offset by a massive trust deficit. 53% of respondents distrust the dominant non-European providers of AI tools. One in two entrepreneurs fears data espionage by third parties. Added to this is concern about reliability: More than half of businesses worry about erroneous results and a lack of source transparency.

The bar chart shows the top five barriers to AI for UK SMBs: Loss of human touch (56%), Fear of data theft (51%), Unreliability/hallucinations (49%), Lack of transparency (47%), and Mistrust of non-European vendors (46%).

This skepticism defines the purchasing criteria:

  • For 55%, reliable results are the most important criterion when purchasing AI solutions.
  • 43% require compliance with legal requirements.
  • For 36%, a provider based in Germany or Europe is a prerequisite for even considering an AI solution for business use.

“German SMEs have understood what’s at stake: AI, yes, but only if data and control remain in their own hands,” explains Achim Weiß, CEO of IONOS. “Sovereign AI is the basic prerequisite for remaining technologically independent. Used correctly, it becomes a decisive lever against the shortage of skilled workers. It increases efficiency and productivity—and secures precisely the innovations our region needs right now.”

A strong need for security unites Europe’s SMEs

Concerns about data theft are not a uniquely German phenomenon. One in two companies fears for its data (Germany 50%, France 52%, UK 51%, Spain 48%, Italy 44%). Concrete mistrust of non-European AI providers is most pronounced in Germany (53%) and France (48%) (UK 46%, Spain 44%, Italy 41%).

Despite these concerns, the overall attitude is positive everywhere: As in Germany (65%**), the vast majority of respondents in Spain (73%**) and France (72%**) also see a positive AI dynamic in their companies (Italy 65%**, UK 58%**). Furthermore, the same purchasing criterion for AI tools tops the list in all five countries: The reliability of the results (UK 56%, Germany 55%, Italy 54%, Spain 52%, France 48%).

The message is clear: Companies are not looking for reasons to reject AI, but rather for providers they trust—and for solutions that deliver reliable results.

A dual-panel infographic comparing AI sentiment across five European countries. Spain and France show the highest optimism (73% and 72%), while Germany expresses the highest mistrust of non-European providers (53%).

*The data used is based on an online survey conducted by YouGov Deutschland GmbH on behalf of IONOS among a total of approximately 4,000 decision-makers from small and medium-sized enterprises with up to 250 employees in Germany, France, the UK, Italy, and Spain (survey period: January–March 2026).

**Aggregated value from two adjacent scale points.

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