Background: Generative Artificial Intelligence (GenAI) has emerged as a transformative technology capable of generating content ranging from text and images to music and code. Its rapid adoption by European organizations is driven by the potential to strengthen competitive advantage, increase market share, and foster innovation. However, the adoption process is accompanied by significant challenges, including ethical issues, data privacy concerns, and the absence of clear regulations.

Purpose: This thesis aims to examine the factors influencing GenAI adoption in European organizations. It explores the motivations driving investment in GenAI, identifies the challenges encountered during its implementation, and provides insights into effective strategies for overcoming these obstacles.

Method: The study employs a qualitative research approach, conducting in-depth interviews with stakeholders from various European organizations. These interviews focus on understanding the motivations behind GenAI adoption, the challenges faced, and the impact of these factors on the broader business landscape. Data analysis involves thematic coding to identify recurring patterns and themes.

Results and analysis: The findings indicate that European organizations are primarily motivated to adopt GenAI to enhance competitive advantage, grow market share, and foster innovation in products and processes. At the same time, the most significant challenges are ethical concerns, data privacy issues, and the absence of clear regulatory frameworks. These challenges create barriers to widespread adoption and require careful consideration.Conclusions: To achieve successful adoption of GenAI, European organizations must address both internal and external challenges. This includes implementing ethical guidelines, ensuring data privacy compliance, and advocating for clearer regulations. The study concludes that a balanced approach, combining innovation with responsibility, is key to unlocking the full potential of GenAI while mitigating risks.

Recommendations for future research: To better understand the evolving motivations and challenges associated with GenAI adoption, further research could explore a broader range of organizational settings and geographic regions. This expanded focus would offer deeper insights into the dynamics of GenAI adoption across different industries and cultures. Additionally, it could reveal how motivations and challenges shift over time, providing a comprehensive view of the long-term impact of GenAI on organizational practices and societal perceptions.