This report examines the current state of AI adoption in Europe, highlighting the barriers that hinder both workers and businesses from fully leveraging the technology. The document outlines the economic potential of generative AI, suggesting that its widespread adoption could significantly boost the EU's GDP by up to €1.4 trillion over the next decade. It emphasizes the uneven landscape of AI adoption across various sectors, noting that while 20% of EU businesses utilized AI technology in 2025, this figure varies widely, with higher adoption rates in digitally mature sectors. The report identifies key human-centric barriers to AI adoption, focusing on individual decision-making factors such as perceived usefulness and ease of use. It also presents six critical questions that organizations must address to facilitate AI adoption, including concerns about relevance, value, risks, regulatory uncertainty, trust, and capability. The findings underscore the need for collaborative efforts among policymakers, industry leaders, and civil society to enhance AI adoption across Europe.