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Andrea Hammermann / Roschan Monsef / Oliver Stettes IW-Trends No. 4 22. January 2025 More Productive with AI?: How Companies and Employees Assess its Effects on Productivity

Almost one third of all employees in Germany have had at least one new artificial intelligence (AI) application introduced at their workplace since 2022. AI is most commonly used for automatic data processing and text recognition.

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How Companies and Employees Assess its Effects on Productivity
Andrea Hammermann / Roschan Monsef / Oliver Stettes IW-Trends No. 4 22. January 2025

More Productive with AI?: How Companies and Employees Assess its Effects on Productivity

German Economic Institute (IW) German Economic Institute (IW)

Almost one third of all employees in Germany have had at least one new artificial intelligence (AI) application introduced at their workplace since 2022. AI is most commonly used for automatic data processing and text recognition.

Nearly four in ten of the companies that have already established AI applications in at least some areas believe that the use of AI has increased labour productivity. 45 per cent of employees who have been working with AI applications for some time have noticed an increase in their work performance since 2022. This proportion is significantly higher than among those who do not use AI (32 per cent). The findings are more ambivalent, however, when it comes to newly introduced applications. Here, too, employees mostly notice a change in their work performance.

Often they see it as positive, but not always: around 15 per cent of AI users with newly introduced applications believe that their performance has actually declined overall. It seems to take a certain amount of time to implement AI effectively. Furthermore, the relationship between AI applications and work performance depends on the employees’ education and experience. The findings suggest that AI is more likely to be associated with improved performance among employees with specialist knowledge and work experience.

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How Companies and Employees Assess its Effects on Productivity
Andrea Hammermann / Roschan Monsef / Oliver Stettes IW-Trends No. 4 22. January 2025

More Productive with AI?: How Companies and Employees Assess its Effects on Productivity

German Economic Institute (IW) German Economic Institute (IW)

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Employment Dynamics in the Low-wage Sector
Holger Schäfer IW-Trends No. 4 4. December 2024

Employment Dynamics in the Low-wage Sector

In 2021 around 13 per cent of the working-age population, or 19 per cent of those in dependent employment, were receiving a low wage, showing that this pay segment is continuing to decline.

IW

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Andrea Hammermann / Jochen Pimpertz / Oliver Stettes Expertise 11. November 2024

Employment shortly before and after retirement

As a result of demographic trends, around a quarter of all employees in the mechanical engineering sector are expected to retire in the next ten years. This corresponds to more than 296,000 people.

IW

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