The State of European Business 2026 Report warns that increased competition, advertising costs and algorithmic changes are creating new barriers to visibility for European businesses not yet ready to cope with the pace of AI-driven change.
London, June 16, 2026–(BUSINESS WIRE)–Businesses in the UK and Europe find it more difficult than ever to reach customers online and suffer from a lack of clarity about what will drive growth, according to digital ecosystem provider team.blue’s first annual State of Doing Business in Europe report.
The research, which surveyed more than 10,000 companies across 32 countries, warns of a growing “visibility gap” for European businesses – a disconnect between their online presence and their ability to understand, influence and measure how customers discover them.
The way customers find brands is changing faster than most businesses can adapt, with almost one in three UK businesses (35.1%) reporting that it has become harder to reach customers online in the past two years. This is nearly 5% lower than the pan-EU average of 30.6%, but reflects the UK’s competitive digital market, where paid search costs are among the highest in Europe and organic visibility is increasingly difficult to achieve. The discovery landscape is both richer and more fragmented than ever before. Dynamic Team Blue calls it the “visualization economy.”
Businesses are losing confidence in how customers find them When asked about the biggest challenges affecting their ability to reach customers online, UK businesses cited algorithm changes (37.1%), rising advertising costs (32.5%) and increased competition (28.9%) as the biggest barriers. These challenges make reaching customers online less predictable, and many companies experience “AI fog,” or uncertainty about which channels and activities will drive growth.
The gap in AI readiness is widening and small businesses are falling behind. The challenge for businesses is not only to navigate today’s competitive online landscape, but also to prepare for how AI can reshape the way customers find products, services, and brands in the coming years. More than half (58.9%) of UK businesses agree that AI will change the way customers find their business online. However, only one in five (22%) believe they are ready for these changes.
The UK has the highest proportion of priority markets that are not fully ready (46.9%). Small and medium-sized businesses in the UK are the most affected. 35.2% of UK businesses with 50 or fewer employees say it is becoming increasingly difficult to reach customers, and 37.3% of UK SMEs are completely unprepared for AI-powered discovery.
”We are at a time of significant change in the way businesses are found online. Customers are discovering businesses through more channels than ever before, and AI is reshaping the way information is presented and recommended. Many companies are aware this change is happening, but our research shows that they don’t necessarily feel prepared for what’s coming next.“Team.blue CEO Claudio Corbetta explains.”The challenge is not simply responding to change, but building the trust and visibility needed to thrive in a more complex digital environment. ”
”As AI becomes a bigger part of how customers discover your business, understanding what drives visibility and growth becomes increasingly difficult. Businesses need a clear digital foundation that they can manage and build upon. The opportunity is not to chase every new AI tool or platform. This is to ensure that the information customers and AI systems rely on is accurate, reliable, and easy to find. That’s why a strong website remains one of your company’s most important assets.” said Bilal Ahmed, Chief AI and Data Officer at team.blue.
Visibility starts with owned channels As businesses adapt to changing digital channels, many are underutilizing one of the few digital assets they directly control: their website.
81.3% of UK businesses have a website, compared to 86.5% of pan-EU businesses, but only 12.4% of UK businesses accurately track how website visitors become leads or customers. Almost half (45%) don’t track this at all. This is a key opportunity for businesses to gain greater visibility into the channels that drive growth and gain a deeper understanding of the customer journey from discovery to purchase.
The full report can be viewed here.
methodology The findings are based on the “State of European Business 2026” survey commissioned by team.blue and carried out in early 2026.
The survey gathered responses from 10,059 companies in 32 European markets, including Belgium, Bulgaria, Denmark, Ireland, Italy, the Netherlands, Slovakia, Spain, Sweden and the United Kingdom. Respondents represented organizations of all sizes, from freelancers and sole traders to large corporations.
About Team Blue Team.blue is the leading AI-powered digital enabler for businesses and entrepreneurs across Europe, serving over 3.3 million SMB customers in 22 countries. Team.blue is your one-stop partner for web hosting, domains, e-commerce, online compliance, lead generation, and other SaaS solutions, supported by over 4,000 professionals. Team.blue’s vision is to make online business success simpler by leveraging AI intelligence every step of the way.
View source version on businesswire.com. https://www.businesswire.com/news/home/20260616606679/ja/
contact address
Shelby Torrence group marketing director shelby.torrence@team.blue
