What:European venture capitalists are focusing on AI agent startups, innovating automation in workflows, customer service, industrial processes, and more.

Why it is important: AI agents, capable of automating complex tasks without constant human intervention, represent a transformative shift across industries. This technology is seen as a key driver of efficiency and innovation in 2025, attracting significant investment and reshaping business operations globally.

AI agent startups in Europe are gaining significant attention from venture capitalists, as tools powered by AI aim to automate entire workflows and enhance efficiency. These startups span industries ranging from HR and customer service to financial services and industrial automation. Notable examples include France's Maki People, which uses conversational AI for talent acquisition, Germany's Cognigy for customer service agents, and Switzerland's Unique for financial workflows. Other unique startups include H Company with its web agent Runner H, and Juna.ai, which innovates in optimising industrial manufacturing processes with live sensor data. AI-driven startups such as Pigment, Synthesia, and CausaLens showcase how AI agent technologies are revolutionising planning, video production, and data science workflows. With Silicon Valley's enthusiasm and predictions from OpenAI's CEO Sam Altman regarding AI agents' transformative business potential, Europe is emerging as a hotspot for cutting-edge AI agent development.

IADS Notes:The emergence of European AI agent startups comes at a critical moment in retail transformation. Recent data shows that 87% of companies implementing AI have achieved revenue increases of 6% or more , while AI agents have dramatically reduced customer resolution times from 11 to 2 minutes . This efficiency gain is particularly significant as 73% of consumers report feeling overwhelmed by online shopping choices . However, implementation challenges persist, with only 10% of retailers successfully scaling their AI applications , despite 70% planning implementation . The technology's evolution is reshaping core retail functions, from product discovery to purchasing , with companies achieving 15-30% productivity improvements . As European startups develop specialized AI agents for specific retail functions, they address a growing market need while navigating concerns about cybersecurity, with 76% of executives acknowledging room for improvement .

AI agent startups: 18 companies VCs are watching in Europe