The Impact of Digital Transformation on Innovation in European Companies: A New Generation of AI Predictive Model Test Against Predictive Machine Learning Algos

In recent years, the global business landscape has witnessed a profound shift driven by the relentless march of digital transformation. This research provides an overview of the impact of digital transformation on innovation within European companies, shedding light on the key drivers, challenges, and outcomes of this transformative process. Digital transformation is characterized by the integration of digital technologies into all aspects of business operations. It has fostered a culture of continuous adaptation and creativity, driving firms to explore novel solutions, products, and services. From finance to healthcare, manufacturing to retail, companies are leveraging technologies like artificial intelligence, the Internet of Things, and cloud computing to streamline processes, enhance customer experiences, and create new business models, using a machine learning approach to analyze the impact of digital transformation (DT) on innovation in European companies. Based on Eurostat datasets of different technologies were identified to consider which ones have more impact on digital transformation strategies by country and which one is evidence of asymmetries. This way it is possible to advise the better strategy per country and what model should be used to predict the future impact on different countries simulating different values of DT appliance adjusted to each country’s needs. The outcomes of European companies are witnessing improved efficiency and productivity through automation and data analytics. Customer-centric approaches driven by digital technologies are enhancing customer satisfaction and loyalty. Moreover, several aspects of digital human skills should be improved and be acquired to reach the European Union goals.