TY - ECHAP AU - Dorota Czyżewska-Misztal AU - Piotr Idczak AU - Sébastien Bourdin AB - In turbulent times, where we see the rise of AI, depletion of natural resources, climate change, and wars, digital transformation is expected to be a catalyst for change in the face of these challenges. European SMEs are perceived as risk-averse and largely afraid to embark on the path of digital transformation. Given these considerations, a number of initiatives are being promoted at the European Union level to support small- and medium-sized enterprises in facing these challenges. The Digital Innovation Hub (DIH) network, followed by the European Digital Innovation Hub network, was established to offer tailor-made services enabling companies and public sector organizations to build their digital skills, assess their digital maturity level, test and upgrade their infrastructure, and extend networking opportunities. Based on semi-structured interviews conducted with DIH and EDIH managers across the EU, the chapter’s main objective is to demonstrate how (E)DIHs act as territorial intermediaries shaping regional innovation systems that support the continuous digital transition of European business models. Empirical evidence suggests that the effectiveness of EDIHs depends heavily on their degree of embeddedness within regional ecosystems and their ability to foster trust, coordination, and mutual learning among stakeholders. Regarding the variety of services offered to SMEs, overall, they provide pilot services, raising awareness of digital transformation rather than offering test-before-invest services or advanced AI-based solutions. BT - AI-Driven Digital Transformation DA - 10/10/2025 DO - 10.4324/9781003659143-26 LA - en N2 - In turbulent times, where we see the rise of AI, depletion of natural resources, climate change, and wars, digital transformation is expected to be a catalyst for change in the face of these challenges. European SMEs are perceived as risk-averse and largely afraid to embark on the path of digital transformation. Given these considerations, a number of initiatives are being promoted at the European Union level to support small- and medium-sized enterprises in facing these challenges. The Digital Innovation Hub (DIH) network, followed by the European Digital Innovation Hub network, was established to offer tailor-made services enabling companies and public sector organizations to build their digital skills, assess their digital maturity level, test and upgrade their infrastructure, and extend networking opportunities. Based on semi-structured interviews conducted with DIH and EDIH managers across the EU, the chapter’s main objective is to demonstrate how (E)DIHs act as territorial intermediaries shaping regional innovation systems that support the continuous digital transition of European business models. Empirical evidence suggests that the effectiveness of EDIHs depends heavily on their degree of embeddedness within regional ecosystems and their ability to foster trust, coordination, and mutual learning among stakeholders. Regarding the variety of services offered to SMEs, overall, they provide pilot services, raising awareness of digital transformation rather than offering test-before-invest services or advanced AI-based solutions. PB - Routledge PY - 2025 SN - 9781003659143 SP - 263 EP - 275 T2 - AI-Driven Digital Transformation TI - (E)DIHs Strengthening the Adaptability of SMEs in the AI-Driven Digital Transformation UR - https://doi.org/10.4324/9781003659143-26 ER -