This paper investigates artificial intelligence adoption in euro area businesses using survey data from over 6,000 firms across 12 countries. AI is spreading quickly but not uniformly, with substantial differences based on country and firm attributes. Around 70% of firms are using AI to some extent, though only a small fraction consider their adoption significant. The Netherlands, Finland, and Austria show the highest adoption rates, while Italy and Ireland lag behind. Larger, younger companies in technology-focused industries are at the forefront of AI adoption. Firms expect AI to enhance business processes, but skill gaps, data privacy issues, and integration problems hinder its widespread use. Internal funds are the primary source of financing for AI adoption, supplemented by grants and subsidized loans. AI use is linked to increased productivity, revenue, investment, and selling price expectations, especially for heavy adopters. Currently, there is no sign of AI reducing overall employment; instead, it is associated with job growth. However, AI adoption has not yet impacted firms' inflation expectations.