AI Adoption Surges Across German Industry

AI Adoption Surges Across German Industry

The integration of artificial intelligence is rapidly accelerating across the German economy, according to a recent survey conducted by Bitkom, the German Association for Information Technology, Telecommunications and Media. The study reveals a significant surge in AI adoption and a heightened perception of its importance for future business success.

Currently, approximately 36% of German companies are utilizing AI, a figure nearly double the 20% recorded just one year ago. Moreover, almost half (47%) of businesses are actively planning or discussing the implementation of AI solutions, compared to 37% in 2024. This shift is reflected in a dramatic decrease in the proportion of companies considering AI irrelevant, falling to 17% from 41% last year.

A growing consensus recognizes AI’s long-term significance. An overwhelming 81% of businesses now believe AI represents the most crucial future technology, up from 73% in 2024. Conversely, the belief that AI is merely a passing fad has dwindled to 17%, down from 26% previously. For the first time, a slight majority (51%) now express the view that companies failing to adopt AI risk jeopardizing their future prospects.

Companies increasingly regard AI as an opportunity rather than a risk. 83% of businesses perceive AI as a chance for growth, a substantial increase from 78% a year ago and 68% in 2023. While only 14% view AI primarily as a risk, just 1% believe it will have no impact on their operations. Significant changes to business models are anticipated by 24% of firms, while 23% express concern about the potential threat AI poses to their very existence.

Investment in AI is also on the rise. 8% of companies currently utilizing AI plan to significantly increase their investment, with an additional 21% considering higher investments. Only 5% are contemplating reducing their AI spending and no company intends to substantially scale back their expenditures. A significant majority (60%) plan to maintain AI investments at the previous year’s level.

The implementation of AI is concentrated in specific areas. The most prevalent applications are customer interaction (88%) and marketing and communications (57%). Research and development (21%), production processes (20%), controlling and accounting (17%), human resources (14%) and internal knowledge management (11%) represent subsequent areas of adoption. AI implementation within management, legal and tax departments and sales remains comparatively limited. Notably, 12% of companies are integrating AI directly into their products and services.

The number of AI applications deployed across organizations is typically limited, indicative of early-stage implementation. A quarter of companies utilizing AI employ only one application, while another 27% use two. 24% utilize three applications, highlighting a piecemeal approach to integration.

The data is based on a telephone survey conducted by Bitkom Research between the 27th and 32nd calendar weeks, encompassing responses from 604 German companies with 20 or more employees.