The small and medium-sized enterprise (SME) market is undergoing significant transformation, mainly driven by digital technologies such as artificial intelligence (AI) and cloud computing. These technologies offer unprecedented opportunities to enhance operational efficiency and competitiveness for SMEs. However, they also pose significant challenges in terms of cybersecurity and regulatory compliance. In Europe, the AI Act imposes new governance obligations, while French SMEs struggle to move beyond the proof of concept (POC) stage in their AI projects. Spain remains a benchmark in digitization and AI, providing valuable lessons for European SMEs.