Artificial Intelligence and Regional Inequality in the EU: Sectoral Exposure, Patent Mapping, and the Uneven Geography of AI-Induced Transformation.

Artificial Intelligence (AI) as a general-purpose technology has the potential to transform economic and social structures across all sectors. However, the spatial implications of AI adoption remain ambiguous, particularly within the European Union (EU), which is characterized by significant regional disparities in innovation capacity and industrial specialization. This study examines the relationship between sectoral exposure to AI technologies and regional inequality in the EU at the NUTS-2 level. The central hypothesis is that sector-specific exposure to AI—measured through patent activity—can exacerbate territorial disparities. The methodological framework employs a multi-step empirical strategy. First, AI technologies are identified using the International Patent Classification (IPC) guided by OECD and WIPO taxonomies. Second, patent data are linked to economic sectors via the Algorithmic Links with Probabilities (ALP) method developed by Lybbert and Zolas (2014). Third, a composite regional AI exposure index is constructed by weighting sectoral exposure measures by regional employment shares. Spatial analysis uncovers an uneven geographic distribution of AI exposure, concentrated in technologically advanced regions of Northern and Western Europe. This pattern highlights the risk of a “digital divide” between core and peripheral regions. The study’s theoretical contribution lies in developing a reproducible methodology for assessing the territorial consequences of emerging technologies by integrating patent data, sectoral classifications, and regional employment structures. Empirically, it quantifies the links between technological exposure and regional inequality in the EU context. Policy implications emphasize the need for place-based digital transformation strategies, including targeted human capital investments and inclusive smart specialization initiatives to prevent the widening of spatial disparities in the AI era.