Confidence Through Uncertainty: Europe’s Business Leaders Are Betting on People and Practical AI

Our latest Azets Barometer shows international business leaders are persevering through market disruption and posting increasing levels of economic optimism and performance. But beneath the headline figures is an SME market reality which is highly complex and the challenges are real.

As always, SME leaders are pushing on and looking ahead - no room for complacency here. Although global tensions continue to shape business planning, some leaders tell us they are even starting to see some positives emerge from the uncertainty. Getting the best from AI remains high on the agenda, but people, talent and strong leadership continue to be the real safety net for businesses.

For anyone running an ambitious SME business in Europe, 2026 continues to put the pressure on. Ongoing geopolitical risks, mounting regulatory red tape, and the continued grind of high interest rates and labour costs are testing even the most experienced leadership teams.

Yet, the data from our latest round of research—talking to 1,576 senior business leaders across the UK, Ireland, Norway, Sweden, Denmark, and Finland—shows something encouraging. Leading SMEs aren't staying on the defensive; they know that being flexible, using real-time data and making fast decisions are the best ways to keep their business strong. As Donald Boyd, Azets UK Head of Growth & Sales notes:

“In periods of uncertainty, it’s about having real-time information that gives you predictability. If you can make your business as predictable as possible, you’ll have a low-stress life. Smart SMEs are looking at things a bit differently and looking at a digital way forward.”

Headline Confidence Stays High—But a Gap is Opening

Looking at the big picture, economic optimism has climbed to an average score of 7.0 out of 10—the highest we’ve seen since we started tracking. More than three-quarters of leaders (77%) feel good about where their national economy is heading over the next year, and a majority 82% say their own business is performing above average. However, when you dig into the specific regions and business sizes, you see a split in how leaders are really feeling:

• The Nordic Engine & Buoyant Ireland: Denmark is ahead with an optimism score of 8.1 and a business performance rating of 8.2, thanks to steady domestic markets and strong exports. Sweden is holding steady at a confident 7.4 average performance, and Finland, although lagging, shows some signs of bouncing back, climbing to 6.9. Ireland remains upbeat, tracking a performance score of 7.6.
• The UK Still Cautious: On the flip side, the UK is the only market where confidence dropped this quarter. Squeezed by tax uncertainty, heavy regulatory burdens, and rising staff costs, the UK's economic optimism has slipped to 5.1, with financial performance sitting at 6.4. It remains to be seen how a change in leadership will impact the UK going forward.
• The Scale Disadvantage: Size matters just as much as strategy right now. While mid-sized and larger corporations saw their metrics go up, smaller firms (under 50 employees) were the only group to see their performance drop, down to 5.5 (average across all markets). Without the cash reserves or the pricing power of the big players, these smaller SMEs are dealing with a much tougher economic reality.

The Geopolitical Flip Side: Turning Restless Markets into Real Gains

It’s no surprise that geopolitical uncertainty is still the number-one worry for European business leaders. Over two thirds of the leaders we surveyed say that global unrest is directly impacting their strategy, causing financial strain, and forcing them to either rethink their supply chains or put big investments on hold.

But as we found in Q1, businesses are learning how to work through the disruption. 68% say that navigating unpredictable markets has actually forced them to become faster on their feet and more resilient.

Even more surprising: 63% of leaders say global shifts have opened up new commercial opportunities for their business. It seems clever operators are turning global friction into local wins.

AI Deep Dive: Ambition Outpacing Readiness

AI is still a huge part of everyone's long-term planning, with 73% of leaders saying it will be critical for staying competitive over the next three years. But leaders remain realistic and are honest about the practical applications of AI in their day-to-day operations.

Nearly six in ten business leaders (58%) are currently saying that the benefits of AI have been oversold compared to what it can actually do for them right now. On top of this, an ‘infrastructure gap’ has appeared: while 70% say they have a company-wide AI strategy, only about half (53%) think they have the tech setup required to scale it up properly.

The data shows that AI is currently making the biggest impact not in flashy, customer-facing roles, but in taking care of the tedious day-to-day. Businesses are heavily prioritising automation where it saves time on basic tasks:

By comparison, higher-profile uses like product development (68% active use, but only 9% top impact) and direct client interactions (69% active use, but only 8% top impact) are being widely tested, but they aren't part of daily productivity just yet.

The Strategic Advisory Pivot: Investing in People as the Ultimate Safety Net

As gaps in strategic planning, change management, and regulatory compliance rise to the top of the boardroom agenda, SME business leaders continue to highlight this important point: technology is a powerful tool, but your people are your ultimate safety net.

There are some conflicting thoughts around this. Close to two-thirds of leaders trust that their current team has the digital skills to use AI properly. However, 59% are also worried that rapid AI adoption will make core jobs redundant within the next five years. Azets leaders predict that this paradox will continue to force a shift in workplace culture, putting a premium on empathy, adaptability, and old-fashioned human connection. According to Neil Hughes, the CEO for Azets in Ireland, today’s leaders

“need to be out in the marketplace, generating business and building trust”.

The AI shift is also very likely to change what people want from a professional advisor. As automated tools quietly take over routine compliance work, accounting, and basic reporting, business owners are looking for a deeper relationship with their advisory partners.

They don't just want an advisor who looks backward to check old data. They want real-time management insights, proactive advice on regulations, and a partnership built on strategic guidance and empathy. In a complicated business environment, having a partner who can help you make confident decisions with clear data is the ultimate advantage.

Our Key Takeaways from the Barometer Data this Quarter

The Best Operator Wins: Three Principles for the Road Ahead from SME leaders in the know

• Lead with Clear Direction: When things are uncertain, your team and your customers want clear choices, made with conviction. Doing nothing or waiting for things to quiet down is sometimes the riskiest move you can make.
• Adopt and adapt to future-proof with AI: Use AI to absorb the boring admin and take away the zero-joy tasks. Take that saved time and reinvest it directly into building trust with your customers.
• Prioritize Agility: Keep reviewing your business models, your data pipelines, and your team's skills. The businesses thriving right now are those able to pivot when the situation shifts.

This blog is based on data from the Q2 2026 Azets Barometer. Explore all the data online in the Q2 2026 Azets Barometer Dashboard. To see the full story, including country-level breakdowns and sector insights, download the Q2 2026 Azets Barometer Report. Need help preparing your business for the future? We offer a personal, local approach to our advisory and accounting services. Click the Contact Us tab at the top of the page to get connected with our trusted advisors.