Digitalisation in 2026: Bulgarian SMEs Between Catching Up on the Basics, AI Regulation and Strategic Opportunities

In recent years, digital transformation has often been presented as a matter of choice: whether a company should adopt cloud services, a customer relationship management system, automation or artificial intelligence. In 2026, this discussion is entering a different phase. European policies increasingly link technology adoption to specific requirements for transparency, security, risk management and traceability.

This creates a particular paradox for Bulgarian small and medium-sized enterprises. A significant proportion of them have yet to reach a basic level of digitalisation, while European funding and regulation are increasingly focused on artificial intelligence, semiconductors, strategic technologies and dual-use applications. Businesses must simultaneously catch up on the fundamentals and prepare for more advanced requirements.

This does not mean that every company should immediately invest in the most sophisticated technology. It means that digitalisation should be managed as a coherent business system in which processes, data, people, security and investment are interconnected.

The Digital Gap Is Now an Operational Risk

According to Eurostat's Digitalisation in Europe 2026, in 2025 only 38% of Bulgarian SMEs had reached at least a basic level of digital intensity. The average level for the European Union is 71%. Only 2% of Bulgarian SMEs fall into the category of very high digital intensity. The data are published in the Eurostat interactive report.

The gap is particularly visible in the use of cloud services. Paid cloud solutions are used by 17.83% of enterprises in Bulgaria, compared with an EU average of 52.74%. This matters because the cloud is not merely a form of technology infrastructure. It often provides the foundation for collaboration, document management, secure archiving, CRM and ERP systems, data analysis and remote access. Detailed data on enterprise use of cloud services are available from Eurostat.

For many businesses, the highest return over the coming months will not come from a complex AI project, but from putting several essential components in place:

• a unified system for managing customers, quotations and follow-up activities;
• a digital workflow for documents, approvals and version control;
• integration of sales, production, warehouse and accounting processes through an appropriate ERP system;
• regular use of operational data to support management decisions;
• access controls, backups and basic cybersecurity rules.

These investments reduce wasted time, improve traceability and create a reliable environment for the later adoption of automation and artificial intelligence. Without this foundation, AI often accelerates existing disorder instead of delivering sustainable improvement.

The AI Act: From Experimentation to Rules for Use

On 2 August 2026, the transparency obligations under Article 50 of the European AI Act will become applicable. They cover certain interactive and generative AI systems, machine-readable marking of generated or manipulated content, and the labelling of deepfake materials and certain texts concerning matters of public interest. The European Commission provides detailed information on the transparency obligations.

It is important to avoid interpreting these requirements too broadly. Not every internal use of AI, and not every text prepared with the assistance of an AI tool, automatically requires the same form of public disclosure. The applicable obligations depend on the organisation’s role as a provider or deployer, the type of content, the method of distribution and the relevant exemptions. However, every company should now be able to explain where, by whom and for what purpose AI is being used.

Following the political agreement on the AI Act simplification package, the application of some rules for high-risk systems was postponed. For systems used in areas such as employment, education, biometrics and critical infrastructure, the new date is 2 December 2027. For AI integrated into regulated products, including certain machinery and equipment, the date is 2 August 2028. The updated implementation timeline is available from the European Commission.

A consultation on the draft guidelines for classifying high-risk AI systems is also open until 23 July 2026.

The practical response for an SME should not begin with extensive legal documentation, but with a concise register of AI uses:

• which tools are authorised and for which tasks;
• what company, personal or customer data may be entered;
• when outputs are subject to mandatory human review;
• which public materials must be labelled;
• how versions, evidence and responsibility for the final decision are recorded;
• how employees are trained to recognise limitations and risks.

Such a register turns AI from an informal tool used at individual discretion into a managed part of the working environment.

Artificial Intelligence and Cybersecurity Are Now a Single Management Issue

On 7 July 2026, the European Commission presented its Action Plan on Cybersecurity and Artificial Intelligence. It sets out three interconnected objectives: ensuring the safe and responsible use of advanced AI, strengthening Europe’s cyber resilience, and expanding the use of AI for cybersecurity.

The message for businesses is clear: AI should not be managed separately from information security. The risks extend far beyond an inaccurate chatbot response. They include entering confidential information into public models, inappropriate access permissions, instruction manipulation, insecure integrations and dependence on providers whose terms or models may change.

A minimum set of controls for SMEs should include approved tools, multi-factor authentication, separation of access rights, rules for sensitive data, periodic reviews of integrations, a contingency process for provider unavailability, and clearly assigned responsibility for verifying outputs. In this way, security becomes a condition for productive use rather than an obstacle to innovation.

European Funding Is Shifting Towards Strategic Value Chains

The same change is visible in European funding. On 8 July 2026, the Chips Joint Undertaking announced 16 calls with a combined value of more than EUR 300 million. They cover both pillars of the programme and include areas such as electronic components and systems, AI hardware, edge computing, cybersecurity, energy efficiency, advanced packaging and photonics.

These opportunities are not reserved exclusively for chip manufacturers. Companies developing or producing sensors, embedded systems, specialised electronics, robotics, photonics, industrial automation and precision equipment may also find a role within the value chain. Participation usually requires an international consortium and a clearly demonstrated technological contribution.

In parallel, the European Innovation Council opened the EIC STEP Scale Up Defence scheme, with a budget of EUR 100 million for 2026. The instrument provides equity investments ranging from EUR 10 million to EUR 30 million and is intended for technologically mature companies preparing significant investment rounds. It is not a standard grant for purchasing equipment and is not a realistic opportunity for every SME.

The wider significance lies elsewhere. European industrial policy is creating new demand across value chains for precision manufacturing, electronics, sensors, software, drones, testing and specialised equipment. A traditional manufacturer may not qualify as a direct EIC applicant, but it could become an approved supplier to companies receiving this funding.

Funding in Bulgaria Requires More Precise Filtering

As of 13 July 2026, the national funding landscape is more limited. The open procedure supporting the implementation of innovations by SMEs is available only to enterprises located within the territories of Local Action Groups, with an application deadline of 14 September 2026.

Under the Research, Innovation and Digitalisation Programme, procedures are active for European partnerships and for complementary funding of already approved projects under "Digital Europe". The broader procedure "New Models in Manufacturing by SMEs" closed on 5 June. The current list of open procedures is available in the UMIS 2020.

The second procedure supporting charging infrastructure along roads has a deadline of 16 July 2026. Because of the short remaining period, it represents a realistic opportunity only for applicants that already have prepared locations, technical documentation and partnerships.

Information about funding should therefore answer at least four questions: who is eligible, what type of support is provided, whether a consortium is required, and what level of project maturity is expected. A general list of “open programmes” can create more noise than genuine opportunity.

Cross-Border Businesses Should Also Monitor the Risk of Late Payments

On 8 July 2026, the European Commission referred Romania to the Court of Justice of the European Union over systemic and persistent delays in payments owed to pharmacy operators. The specific case concerns the healthcare sector, but it also highlights the broader effect of overdue payments on suppliers’ liquidity, investment capacity and resilience.

For companies in the Ruse region working with Romanian public or regulated organisations, this provides a reason for more careful contractual and financial assessment. Businesses should examine actual payment periods, procedures for accepting deliveries, interest and compensation for late payment, credit exposure limits, and the working capital required to support the relationship.

Growth in cross-border sales is not sustainable when financing the customer is gradually transferred to the supplier.

A Practical 90-Day Framework for SMEs

Businesses cannot respond simultaneously to every technological and regulatory development. They can, however, establish a sequence of actions that reduces risk and creates a foundation for the next investment.

1. Measure the starting position. Conduct a concise assessment of processes, systems, data, integrations and cybersecurity. Identify three specific weaknesses with a direct effect on time, quality, sales or risk.
2. Create a register of AI uses. Record the tools, tasks, data types, responsible employees and methods of human review. Prepare rules for public-facing content before 2 August.
3. Strengthen basic controls. Introduce multi-factor authentication, backups, access management and an incident-response procedure. Review the contracts and settings of key cloud and AI providers.
4. Select one operational investment. Prioritise CRM, ERP, document management, data analysis or automation based on a measurable business problem rather than the popularity of the technology.
5. Map your place in the chain. Check whether the company's competencies can be applied in semiconductors, automation, electronics, robotics, defense or other strategic industries, including as a second or third tier supplier.
6. Filter funding opportunities by eligibility. Distinguish between grants for individual enterprises, territorial and sector-specific calls, consortium projects and equity instruments. Monitor only those opportunities that match the company’s maturity and capacity.

Conclusion

The most important change in 2026 is that digitalisation can no longer be measured solely by the number of tools introduced. Businesses are increasingly expected to demonstrate how they use technology, protect data, control risk and create value.

For Bulgarian SMEs, this is not a reason to skip the fundamental investments. On the contrary, a reliable foundation in processes, cloud services, data management and cybersecurity will determine which companies can use AI sustainably and participate in emerging European technology value chains.

The Ruse Chamber of Commerce and Industry publishes materials of this kind to support regional businesses in assessing new requirements, selecting applicable technologies, and navigating opportunities for funding and partnership.

If you would like to discuss your organization's digital maturity, practical AI management, or opportunities to engage in technology and project partnerships, contact me at sminchev@rcci.bg or 0895 890 123.

Note: This publication was prepared with the assistance of generative artificial intelligence, which supported the structuring, source verification and formulation of the content. The final text reflects the author’s expert contribution, ensuring its accuracy and practical focus. The information is current as of 13 July 2026 and does not constitute legal or financial advice.