European Founders Trust AI Providers More Than Governments to Drive Growth

European startup founders are increasingly turning away from public institutions, placing higher trust in AI providers and sales platforms than in their own governments. This "trust gap" highlights a critical shift for fintechs and service providers, as founders prioritise practical value and reliability over traditional state support to navigate rising operating costs and economic uncertainty.

What was announced

The Startup Trust Index surveyed 700 founders across the UK, France, Germany, Italy, Spain, and the Nordics to evaluate their relationships with 14 different types of organisations. The research found that while founders view their national governments as having the most power over their growth, only 27% actually trust them—the lowest rating in the survey. In contrast, AI providers and sales platforms are the most trusted entities, each cited by 37% of respondents, followed by investors at 35%. Other technology partners also outscore the state, including business software providers at 34% and cloud infrastructure providers at 32%.

The trust deficit is most pronounced in the UK, where 47% of founders acknowledge government influence but only 24% express strong trust in it. AI adoption is now a core component of European startup operations, with 69% of founders using the technology and 19% relying on it for business-critical decisions and processes. This confidence is driven by clear returns; 56% of founders reported increased productivity and 52% saw improved revenue or profit margins through AI integration. Despite this technical reliance, 63% of founders still maintain that human relationships are more vital to their growth than technology.

The study also highlighted that 56% of founders depend on organisations they do not fully trust, primarily because 30% believe there are no suitable alternatives for the capabilities provided. Operating costs remain the primary hurdle, cited by 32% of founders as their biggest barrier to growth over the last year. Looking toward the future, only 17% of founders define success as a sale or public listing, with 39% preferring to build durable, independent businesses.

"Europe’s founders trust AI providers more than their own governments to help them grow. Europe’s governments should take that seriously if they want the next generation of great companies built here,"

Denise Johansson, CEO and Co-Founder at Enfuce

The companies involved

Enfuce is an issuer processing powerhouse that provides cloud-native payment solutions to fintechs, banks, and enterprises. The company specialises in card issuing and processing, enabling its clients to launch and scale payment programmes across multiple geographies with a focus on speed and regulatory compliance. As a key player in the European financial infrastructure market, Enfuce manages the technical complexities of transaction authorisation and card lifecycle management.

The firm has become a prominent voice in the fintech sector, frequently publishing research on the evolving relationship between technology and financial services. Its platform is designed to handle the high-stakes requirements of modern digital finance, positioning the company as a bridge between traditional banking rails and the agile needs of the startup economy. By providing the underlying technology for card programmes, Enfuce occupies a central role in the ecosystem, giving it a broad perspective on the operational challenges and trust issues facing founders today.

What FF News has reported before

FF News has tracked Enfuce’s expansion and research initiatives extensively, with 70 stories covering the company’s developments. This includes recent findings in Brits Trust AI with Health More Than Money: Enfuce Research Reveals Major Payments Trust Gap, which explored similar themes of consumer confidence in automated systems. The publication has also reported on the company’s geographic growth, such as when Enfuce Enters Belgium and Luxembourg With Monizze to Launch Open-Loop Employee Benefit Cards. Additionally, FF News covered technical milestones like the Enfuce and Avida Achieve Record-Breaking Nordic Card Migration. The broader challenges facing the startup sector were also highlighted in reports such as Tech Startups Stall on Stablecoins Due to Fraud Fear and Links to Crime, illustrating the complex environment in which Enfuce operates.

What this means

This data signals a profound shift in the power dynamics of the European startup ecosystem. When founders trust AI algorithms and commercial platforms more than the legislative bodies that govern them, it suggests that public policy is failing to keep pace with the practical needs of high-growth businesses. The "trust gap" creates a vacuum that private technology providers are more than happy to fill, but it also places a heavy burden of responsibility on these vendors. As AI moves from a productivity tool to a decision-making agent in payments and operations, the industry must address the looming question of accountability when automated systems fail.