Artificial intelligence marks significant progress within Germany's economic sector
In recent times, the integration of Artificial Intelligence (AI) has become a significant trend among German businesses. Here's a breakdown of how companies are embracing AI and its potential effects on the industry.
Approximately one in eight companies (12%) are currently incorporating AI into their own products and services. Among these adopters, 8% have plans to significantly increase their AI investments, while 21% intend to increase investments somewhat. This demonstrates a growing commitment to AI technology among German businesses.
However, not everyone is convinced of the benefits of AI. Around 56% of companies believe that the European AI Act creates more disadvantages than advantages for German businesses. On the other hand, 83% see AI as an opportunity, with 81% viewing it as the most important future technology.
The concerns about job loss are also prevalent. 20% of companies believe that the number of jobs will decrease due to AI, on average by 7%. Yet, 7% expect the number of jobs to increase, on average by 8%.
When it comes to the country of origin of AI providers, 88% of companies consider this factor important. The preference is strongest for AI from Germany, with 93% of companies expressing a preference, followed by the USA, Japan, EU countries other than Germany and France, France, UK, South Korea, Israel, India, Ukraine, and China.
Despite the strong preference for domestic AI providers, no specific German company has been announced in the last months to have acquired an AI provider to advance digitalization in the chemical industry. However, many German companies show a strong preference for domestic AI providers to drive digital transformation.
AI is predominantly used by companies in customer contact and marketing and communication. Its use is scarcely found in management, legal or tax departments, sales, and the IT department.
AI is also expected to help alleviate the skilled labor shortage in Germany, with 31% of companies believing this to be the case. Additionally, 24% expect AI to change their business model.
Interestingly, only 5% of all companies are actively hiring staff with AI knowledge. This could suggest a potential skills gap in the AI sector.
Concerns about the risks associated with AI are present, with 14% seeing it as a risk. However, 37% of the affected companies expect to operate a so-called high-risk AI system.
Finally, it's worth noting that a quarter of companies use only one AI application, another 27% use two, and 24% use three. Only 6% use four, and 2% use five or more. This indicates a relatively low level of AI application diversity among German companies.
In conclusion, while there are concerns about the impact of AI on employment and the potential risks, the majority of German companies view AI as an opportunity and the most important future technology. The preference for domestic AI providers and the expected benefits in terms of job creation and business model transformation are promising signs for the future of AI in Germany.
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