- Research reveals: AI adoption remains stationary in German businesses
The buzz surrounding the hot topic of Artificial Intelligence (AI) seems to bypass much of Germany's economic landscape. While German corporations have been incorporating AI more frequently than the European average, this trend has remained unchanged since 2021. This revelation comes from a recent study conducted by the Leibniz Center for European Economic Research (ZEW) Mannheim, commissioned by the German Ministry of Economics.
As per the study, a mere 12% of commercial entities in Germany utilized AI for their operations in 2023. This figure is a minor 1% up from 2021's 11%. The marginal rise is attributed to the enhanced use of AI in the information and communications sector and retail.
AI finds its application in various corporate segments. For instance, it enhances manufacturing processes and logistics. Certain quality control tasks can be handled by AI. Artificial Intelligence also aids in optimizing delivery routes, boosting software development, or translating foreign language text.
Unexpected findings
Study lead author Christian Rammer, deputy head of the ZEW department 'Innovation Economics and Enterprise Dynamics', expressed his surprise at the minimal growth in AI adoption since 2021. "Considering AI's growing emphasis in public discourse and its recognition as the foremost technological trend, this increment of only 1% is surprising." Germany continues to outshine the EU average.
Across the EU, mere 8% of businesses were utilizing AI in 2023. In contrast, Germany's ratio was 11.6%. The frontrunners in AI business sector adoption are Denmark, Finland, Belgium, and the Netherlands. German corporations top the EU average in all industry segments. In the domains of business services (legal, tax, and consulting, engineering offices, research and development, advertising, and creative services) and other economic services (such as temporary work, security, and cleaning services), German corporations rank among the top 3 in the EU.
Possible higher AI adoption
Rammer acknowledges a potential flaw in the statistics. For 2023, 5% of the surveyed companies reported no AI usage, despite having reported AI usage earlier. "These companies might have ceased AI use or the AI processes might have become so intertwined with business activities that the respondents failed to mention them." If these companies are included, there would be a noticeable increase in AI adoption in 2023 compared to 2021, Rammer pointed out.
Despite the significant hype surrounding Artificial Intelligence (AI), the study reveals a modest 1% increase in its adoption by German commercial entities since 2021. The hype surrounding AI's potential applications in various corporate segments, such as manufacturing and logistics, appears to have yet to translate into widespread adoption in Germany.
