German Economy Drives Adoption of Artificial Intelligence
The German economy is continuing to push the use of artificial intelligence (AI) forward, with a significant increase in the number of companies implementing the technology in their business processes. According to a recent survey by the Munich-based Ifo Institute, 40.9 percent of companies are currently using AI, a substantial rise from the 27 percent reported last year. Furthermore, 18.9 percent of companies plan to start using AI in the coming months.
“The challenge lies in integrating AI in a meaningful way into existing processes” said Klaus Wohlrabe, head of Ifo Surveys. “AI is becoming a strategic theme in companies and we can see a clear trend towards its adoption.”
The construction industry has seen a particularly strong surge in the use of AI, with the percentage of companies using the technology rising from 7.1 to 25 percent within a two-year period. The retail sector has also seen a significant increase, with the use of AI rising from 10 to nearly 34 percent. In the manufacturing and service sectors, more than 40 percent of companies are already using AI.
However, upon closer examination of the data, significant differences emerge. Companies in the advertising and market research sectors are the most frequent users of AI, with 84.3 percent of companies employing the technology. IT service providers are also at the forefront, with 73.7 percent of companies using AI. The automotive industry, with 70.4 percent, is another sector that is heavily investing in data-based production processes. In the chemical and machinery industries, roughly every second company is using AI, while the food, beverage and textile industries are more cautious, with 31.3, 21 and 18.8 percent of companies using AI, respectively.
A clear correlation is evident between the size of the company and the use of AI, with 56 percent of large companies using the technology, compared to 38 percent of small and medium-sized enterprises and 31 percent of small businesses. Despite this, there is an increasing interest in AI among smaller companies, with many in the planning or discussion phase.
Despite the positive trend, there are sectors in which AI is not yet a prominent topic. For the 22.2 percent of retail companies and 27 percent of companies in the construction and gastronomy sectors, AI is not currently a concern. “These sectors are lagging behind in terms of their future strategy for the use of artificial intelligence” said Wohlrabe.