Artificial Intelligence as a Competitive Factor for the German Economy

Artificial intelligence (AI) can be a key to overcoming these challenges. However, it needs to be used extensively by many companies. This study analyses the current status of AI use in German companies based on a survey of 1,038 companies as part of the IW Future Panel.

Currently, 37 per cent of the companies surveyed use AI. At 66 per cent, large companies use AI much more frequently than small companies (36 per cent). In terms of sectors, business-related service providers are particularly frequent users of AI at 55 per cent, followed by mechanical engineering, the electrical industry and vehicle construction at just under 40 per cent. In contrast, companies from sectors such as construction, wholesale and logistics use AI much less frequently (less than 25 per cent).

The companies surveyed mainly use AI to automate routine work, support complex tasks and improve quality. Generative AI is particularly popular. However, AI is usually only used selectively in individual areas of the company and rarely company-wide.

The fact that surveyed companies predominantly use free-of-charge AI tools, and less frequently purchase or develop their own tools, also indicates that the overall adoption of AI in the German economy is rather superficial so far.

The study provides specific recommendations for achieving broader AI implementation and leveraging its economic opportunities: targeted educational initiatives, focused financial incentives, intelligent regulatory frameworks, and improved digital infrastructure are key levers. Moreover, Germany should integrate its industrial value-creation model with the potential of AI, developing distinctly European AI solutions.

If Germany succeeds in establishing AI "Made in Germany" as a hallmark for innovation and reliability, artificial intelligence could indeed become a cornerstone of sustainable economic growth and prosperity.