Luxembourg aims to become a hub for artificial intelligence (AI), but its performance keeps it some way behind the most advanced economies. In its analysis of the IMD World Digital and AI Ranking 2026, the Chamber of Commerce highlights the country’s persistent weaknesses and the erosion of some of its strengths. The Grand Duchy ranks 32nd out of 70 economies, between Latvia and Bahrain, behind Germany (18th), France (21st) and Belgium (29th).
At the top of the list are the United States, Singapore and the Netherlands. Europe has five representatives in the top ten, including Denmark, Sweden, Finland and Switzerland. Luxembourg’s result contrasts with the 14th position achieved in the IMD’s overall competitiveness ranking published in June: the country’s economic attractiveness is not reflected in a corresponding position in the digital sector.
Luxembourg’s main strength lies in its governance, which is ranked 14th, and more specifically within its regulatory framework, which amounts to a 5th rank. However, this favourable environment is struggling to lead to the widespread adoption of these technologies. The country ranks 36th in ensuring the effective roll-out of digital technology and artificial intelligence (AI), 37th for human capital development and 39th for technology and infrastructure.
A lack of funding and expertise
Access to capital is one of the weaknesses identified by the study. Despite the significance of its financial centre, Luxembourg ranks only 45th for companies’ access to venture capital. Corporate investment in AI places it in 38th position. These findings raise questions about the financial sector’s ability to support the local economy’s needs for transformation and innovation.
The situation is also a cause for concern when it comes to skills. Whilst the Grand Duchy remains attractive to highly qualified foreign talent (9th), it is significantly lower for AI education at university level (55th), AI skills (49th) and business investment in training in these technologies (43rd). Attracting experienced professionals is therefore not enough to prepare the wider economy for their deployment.
These weaknesses are reflected in usage patterns. The sub-factor relating to the adoption of AI ranks Luxembourg 41st, compared with 19th in 2025 in the series published by the IMD. The indicator specifically relating to its adoption in businesses, based on the survey of business leaders, even ranks the country 47th. The national AI strategy is better assessed, as of 20th place, highlighting the discrepancy between stated policies and their implementation within organisations.
Resources that do not translate sufficiently into results
Luxembourg does, however, have resources. It is well placed when it comes to internet usage (7th), the proportion of 5G subscriptions (15th) and research staff per capita (16th). Business agility is also an asset, with 17th place.
However, the results are less favourable for scientific publications on AI (59th), digital practices (51st) or the use of online services (53rd). The study thus highlights the difficulty of transforming existing infrastructure, human resources and systems into widely adopted practices.
Security and trust are further areas of concern. According to the survey of business leaders, the country ranks 44th in understanding the risks that AI may pose to corporate IT security. People’s trust in AI, meanwhile, ranks the country at 36th place.
These rankings should, however, be interpreted with caution. The ranking has been significantly overhauled to incorporate AI more fully: it is now based on 88 indicators, 37 of which are drawn from a survey of business leaders. Comparisons with previous editions are therefore limited, and a drop in the rankings does not necessarily indicate a decline in usage. The assessment remains, however, a stern one: to catch up with the digital leaders, Luxembourg must still overcome obstacles relating to funding, training and deployment within businesses.
