Europe faces challenges to its competitiveness due to delays in digitalisation, high energy costs, and low levels of entrepreneurship. Small and medium-sized enterprises (SMEs) require support to adapt to green and digital transformations. Higher education plays a vital role in preparing leaders to leverage AI, develop innovative business models, and make decisions aligned with sustainable development. The integration of modern technologies with practical teaching, supported by multimedia and interactive tools, can effectively foster entrepreneurship. This approach allows universities to actively respond to market needs while promoting innovative and sustainable economic growth.

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The modern world is undergoing a highly dynamic transformation with the development of artificial intelligence (AI)
and shortening innovation cycles.

Introduction

Europe is at a critical juncture where a lack of action will result in a permanent loss of competitiveness and an increasing impoverishment of its citizens. According to a report prepared by a team led by M. Draghi (2024), despite Europe’s considerable innovation potential, it has lost much of its former competitive advantage. The main problems include delays in adopting digital technology along with limited integration of AI tools, high energy costs, low levels of entrepreneurship and a reluctance to start new businesses, excessive bureaucracy and overregulation of the economy. A significant issue is the focus on setting ambitious environmental goals without adequate consideration of economic calculations or the potential impact of new regulations on the competitiveness of the economy. Particularly challenging is the situation of small and medium-sized enterprises (SMEs), which are not sufficiently innovative and lack the financial, organisational, and human resources needed to energise the European economy and compete with firms from the United States and Asia.

Meanwhile, the modern world is undergoing a highly dynamic transformation with the development of artificial intelligence (AI) and shortening innovation cycles, creating the need to transform existing business models and develop new ones, which require rapid technological adaptation, and ongoing skills development among workers. In the face of climate challenges and technological changes, the fusion of digital and green entrepreneurship should pave the way for a new class of entrepreneurs who use technology not only to grow their businesses but also to address environmental and sustainability challenges. However, it is crucial that this transformation focuses not only on maintaining, but also on enhancing, international competitiveness. The use of AI tools creates new opportunities for entrepreneurs but also requires appropriate support from the higher education sector, which plays a critical role in preparing young leaders and entrepreneurs to meet these challenges.

Integration of Green and Digital Transformation in Higher Education and VET Sectors

A review of educational curricula highlights a recurrent challenge: both green and digital transformations are often taught as separate domains, lacking integration. This fragmented approach results in students acquiring incomplete knowledge and skills, limiting their ability to make well-informed decisions that balance sustainability with economic growth. Small and medium-sized enterprises (SMEs) particularly struggle, frequently viewing green transformation as a financial burden rather than a long-term investment with the potential for significant benefits. Compounding this issue is the lack of tailored educational tools, real-world examples of successful implementation, and qualified instructors to guide learners in this area.

In response to these challenges and in cooperation with EFMD, we have implemented two projects in recent years focused on integrated thinking about digital and green transformation: one in the higher education sector— FoDiGreT (Fostering Digital and Green Transformation in SMEs) and one in the VET sector, DiSuDeSME (Digitalisation for Sustainable Development of SMEs).

FoDiGreT | Fostering Digital and Green Transformation in SMEs (FoDiGreT) develops a course on managing green digital transformation in SMEs. It has created an innovative curriculum with gamified interactive training videos, educational films and video case studies to increase the skills of students
for managing green innovation in SMEs.

DiSuDeSME | Digitalisation for sustainable development of SMEs (DiSuDeSME) aims to improve the skills and competencies of employees in small and medium-sized businesses to accelerate digital transformation for sustainable development. The main results of the project are online training videos and a good practices guidebook.

In both projects, we developed innovative programmes and tools, created educational materials in visually appealing formats (educational films, video case studies, microlearning video pills, gamified scenarios), involved SMEs to reflect real business situations, and prepared tools for SMEs to diagnose their position on the path to green and digital transformation. We have observed that today’s Generation Z has an increased need for visual forms of learning based on edutainment and storytelling. Our experiences indicate that in this type of business education, the following elements are of particular importance:

• Integration of Experiential Learning through Storytelling and Film Production: Utilising audiovisual techniques, such as film production and storytelling, engages students in practical and creative processes, making learning more dynamic and impactful
• Implementation of Real-world Problem-based Learning: Students analyse real-world cases presented through multimedia, fostering deeper cognitive engagement and practical readiness
• Use of Multisensory and Inclusive Learning Formats: Combining visual, auditory, and narrative elements makes education more accessible and engaging, catering to the diverse needs of different student groups
• Collaborative Learning and Industry Partnerships: Engaging SMEs in the creation of content bridges the gap between academia and industry, providing students with insights into real-world business environments and fostering collaboration
• Utilisation of Scalable Digital Platforms: Distributing course materials through scalable digital platforms expands accessibility and engagement, particularly for remote and hybrid learners
• Development of Critical Thinking and Analytical Skills: Interactive modules, decision-making scenarios, business simulations, and gamification encourage students to tackle real-world decisions and develop strategic thinking abilities
• Interdisciplinary and Systems Thinking: Programmes that integrate multiple disciplines equip students with a holistic understanding of interconnected challenges, enabling them to address complex issues effectively
• Promotion of Ethical and Sustainable Thinking: Encouraging students to evaluate the ethical implications of business and technological innovations fosters a sense of responsibility and sustainability in their decision-making

By integrating these elements into educational materials, we prepare students for future roles as leaders and entrepreneurs and foster transformative change towards a more sustainable and innovative society.

The Role of AI in Supporting Green and Digital Entrepreneurship

In today’s world, it is difficult to ignore the importance of using AI tools in education. We are already implementing projects based on generative artificial intelligence tools in recruitment and training for the VET sector (e.g., the SMILE, CLAIM and VESTA projects). However, we also see the potential of using these tools in teaching entrepreneurship. AI can support the development of green and digital entrepreneurship in many ways. In the area of sustainable entrepreneurship, AI can offer innovative tools for monitoring, optimising, and managing resources. In energy efficiency, for example, real-time energy consumption analysis allows not only process optimisation but also a reduction in carbon footprints and the elimination of resource waste. In material management and recycling, AI can assist in identifying and sorting waste, optimising processes in line with the principles of a circular economy. Another critical application is in supply chain management, where better demand forecasting, production planning and transport optimisation reduces logistics costs and simultaneously minimises emissions associated with transportation. Additionally, through AI, entrepreneurs can create new, sustainable business models by leveraging precise predictions of consumer behaviour and market data analyses to identify future areas of demand.

In digital entrepreneurship, the benefits of integrating AI include the automation of business processes, such as monitoring orders, analysing sales data, and managing inventory, which significantly increases firms’ operational efficiency. Predictive analytics enables the processing of large datasets and forecasting of market trends, revolutionising modern business intelligence. In customer relationship management, AI automates the collection of user data, monitors their behaviour, and provides personalised recommendations, improving the quality of customer service. Moreover, in cybersecurity, AI can detect potential threats, monitor unusual behaviours in IT systems, and implement automated preventive measures.

These examples of AI applications, which we are gradually integrating into educational programmes, highlight the potential for transforming both digital and green entrepreneurship. Such applications contribute significantly to increasing the competitiveness of businesses. Considering the growing expectations of students regarding tools and technologies that support their development, the higher education sector must actively respond by delivering curricula adapted to the demands of the modern market.

How Can Higher Education Foster Green and Digital Entrepreneurship in the Age of AI

The higher education sector plays an important role in shaping future entrepreneurs. In a rapidly changing world, where technology and societal expectations redefine the purpose of education, effective learning must go beyond simply transferring knowledge. It must nurture future leaders capable of thriving in complex and demanding environments. Modern education requires a thoughtful combination of key elements that together form a solid foundation for the development of tomorrow’s leaders. By reforming curricula, with projects such as FoDiGreT or DiSuDeSME, and rethinking daily practices, several interconnected priorities emerge.

The first pillar is digital literacy and the integration of artificial intelligence (AI). Embedding AI into educational programmes unlocks opportunities for students and professionals that were unimaginable just a few years ago. Advanced data analysis, process optimisation, and the creation of new business models make AI a tool that not only improves management, but also addresses global challenges such as climate change and resource scarcity. However, technology alone is insufficient. Understanding its context and societal impact is equally essential. This is where systems thinking and a holistic perspective come into play.

Modern leaders must grasp the interconnectedness of business, social, and environmental decisions. Such a perspective helps them understand that even local actions can have far-reaching global implications. Students learn to analyse long-term effects, moving beyond narrow definitions of economic success. Moreover, interdisciplinary and transdisciplinary approaches—combining knowledge and tools from various fields—are vital for creating innovative and sustainable solutions. Entrepreneurs and leaders equipped with this mindset can integrate digital technologies, sustainability principles, and market needs, effectively addressing challenges such as digital transformation and climate change. Encouraging students to think creatively and solve problems is equally important. Today’s challenges not only require technical expertise but also the ability to apply it innovatively. Equipping students with critical thinking skills and the ability to design data- and AI-driven business solutions enables them to develop efficient and socially responsible models. Leadership and cultural sensitivity are also critical in the increasingly global and remote workplace. Managing diverse teams, fostering inclusive strategies, and adapting to different cultural contexts are skills that determine success in international markets. Lastly, modern leaders must be aware of their ethical responsibilities. While AI offers vast opportunities, it also presents challenges related to privacy, automation, and social equity. Preparing future leaders to balance innovation with ethical considerations is an essential part of their education.

Higher education institutions that integrate these elements into a cohesive strategy become more than centres of learning—they become drivers for social and economic transformation. By adopting such approaches, tomorrow’s leaders will not only manage effectively but also inspire others, driving a more sustainable, responsible, and innovative world. With this foundation, Europe can once again reclaim its competitive edge in global markets.

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References

1. Draghi, M. (2024). The Future of European Competitiveness—A Competitiveness Strategy for Europe. https://commission.europa.eu/document/97e481fd-2dc3-412d-be4c-f152a8232961_en
2. Erasmus+ project – CLAIM: Artificial Intelligence for Competences and Learning, no 2023 -1-IT01-KA220-VET-000156965 https://www.claim-project.it/en/claim/
3. Erasmus+ project – VESTA – Artificial Intelligence for Vocational Excellence and Skill Training, Project 2024-1-PL01-KA220-VET-000249104
4. Erasmus+ project – Fostering Digital and Green Transformation in SMEs, nr 2021-1-PL01-KA220-HED-000027531 http://fodigret.pl
5. Erasmus+ project – Digitalisation for sustainable development of SME, 2021-2-PL01-KA220-VET-000049458, https://disudesme.eu