FRANKFURT - Euro zone companies are increasingly relying on internal funds to finance artificial intelligence (AI) investments, highlighting the difficulties European companies still face in securing external funding. According to Reuters , data cited in a blog post by the European Central Bank (ECB) showed that 72% of euro zone companies planned to use internal funds, such as cash flow or retained earnings, to finance AI investments. By contrast, only 16% of companies planned to use bank loans. Around 6% cited equity and venture capital as sources of funding, while only 1% considered issuing debt securities. AI investment in Europe is also taking place at a lower level than in the United States.
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