European organisations recognise digital risks, but take too little action

European organisations have a clear understanding of where their digital challenges lie, but too often fail to translate that insight into concrete decisions. Technical debt continues to hinder innovation, critical dependencies remain insufficiently mapped, and AI is primarily being used to accelerate existing processes rather than fundamentally transform ways of working. These are among the findings of Tech Reality Check 2026, a study by Conclusion among 1,058 IT decision-makers and business leaders in the Netherlands, Germany, Spain and Portugal.

A recurring theme throughout the research is technical debt: the accumulation of IT liabilities caused by legacy systems and deferred maintenance. Sixty per cent of respondents view technical debt as a significant or structural barrier to innovation, yet only 18 per cent take it into account when making investment or phase-out decisions.

Although 85 per cent of respondents report having largely or fully mapped the total cost of ownership (TCO) of their digital environments, comprehensive insight, including indirect costs and future obligations, is far less common. Significant differences emerge between countries.

Germany performs strongest in terms of TCO visibility (71%), yet also reports the highest level of innovation being constrained by technical debt. The Netherlands lags behind, with only 35 per cent of organisations reporting a complete overview of costs. Spain scores highest on measuring value, but even there this does not consistently translate into disciplined investment decisions. Portugal occupies a middle position, with 47 per cent reporting full TCO visibility.

The gap between knowing and acting is equally evident when it comes to digital autonomy. While 86 per cent of respondents are aware of the risks associated with non-European legislation affecting their technology or data, only 50 per cent have translated that awareness into an active sovereignty strategy.

Germany and the Netherlands are ahead of Spain and Portugal, where such policies are less frequently embedded in a structural way. Yet almost half of all respondents expect serious consequences if a critical supplier were to fail: 10 per cent anticipate immediate operational disruption, while 38 per cent expect major business impacts.

Having visibility is not enough. Organisations must also determine which dependencies they are no longer willing to accept.

Meanwhile, European organisations continue to invest heavily in AI. Seventy-four per cent of respondents use AI primarily to improve efficiency rather than to fundamentally redesign ways of working, despite the greatest organisational value lying in the reconfiguration of work, roles and decision-making

The trend towards sharing data across organisational boundaries is clearly visible, yet large-scale adoption remains limited. Only 14 per cent of respondents have established a fully integrated and structural collaboration within data ecosystems.

The barriers are not primarily technical, but legal and organisational. In Portugal and Spain, concerns around GDPR compliance and privacy are more frequently cited as obstacles than in the Netherlands and Germany, where organisations have made greater progress in establishing data-sharing structures.

According to Conclusion, the research exposes an uncomfortable truth: “The knowledge is there. Organisations understand where technical debt is holding them back, which dependencies create risk, and where AI can generate value. What is missing is the willingness to make choices based on that knowledge – and to stop doing certain things as a result. That is the step that will make the difference in the years ahead.”