AI Adoption Stagnates in German Companies
ResearchZEW Study for the Federal Ministry for Economic Affairs and Climate Action
German companies use artificial intelligence (AI) more frequently than the EU average. However, this usage has stagnated since 2021, according to a recent study by ZEW Mannheim for the German Federal Ministry for Economic Affairs and Climate Action.
“AI is increasingly gaining attention in public discourse and is considered the defining technological trend. Against this background, it is surprising that AI usage in companies has only grown by one percentage point since 2021. Nevertheless, Germany performs well in the European comparison,” explains Dr. Christian Rammer, author of the study and deputy head of ZEW’s “Economics of Innovation and Industrial Dynamics” Unit.
AI stagnation in Germany surprising
In 2023, 12 per cent of companies in Germany used AI in their business activities, up from 11 per cent in 2021. This slight increase is primarily attributed to the information and communication sector as well as the trade sector.
Considering the overall positive impact of AI on productivity and the dynamic development of its applications, particularly generative AI such as ChatGPT, one would have expected much faster adoption of AI in businesses.
Figures should be treated with caution
However, there are signs that the figures should be taken with a pinch of salt: “In 2023, 5 per cent of all companies reported no AI use, despite having indicated AI use in previous surveys. These companies have either stopped using AI in the meantime, or AI processes have become such an integral part of their operations that respondents didn’t consider them noteworthy. If we include these companies, we see a significant rise in AI usage in 2023 compared to 2021,” Rammer explains.
IT, legal and accounting services lead in AI use
The industry group with the highest proportion of companies using AI is IT services (42%). Much of the AI activity in this sector is driven by the development and commercialisation of new AI applications. This is followed by legal and accounting services (36%), which often use AI to automate the processing or creation of documents. Research and development (R&D) is on a par, where AI is most commonly used for data analysis and modelling. Other sectors with high AI adoption include banking (34%), management consulting (27%), broadcasting and telecommunications (26%), and media, including publishing, film and recording studios (26%).
AI use above average – but not leading
In 2023, the EU average for AI adoption in companies was eight per cent. In Germany, the figure is 11.6 per cent. EU countries with higher AI adoption in the business sector include Denmark, Finland, Belgium, and the Netherlands.
Germany is above the EU average in all industry groups. German consulting services (legal, accounting and management consulting, engineering, R&D, advertising, and creative services) and other business services (such as temporary employment, security, and cleaning services) are among the top three in AI usage, placing them at the forefront internationally.
On the Study for the Federal Ministry for Economic Affairs and Climate Action
The study, commissioned by the Federal Ministry for Economic Affairs and Climate Action, examines the state of AI adoption in German companies compared to international peers. It combines data from three sources:
1) Official statistics from Germany and the EU on AI usage in companies (ICT survey),
2) Data from ZEW’s Mannheim Innovation Panel (MIP) on AI usage and company strategies,
3) Information from company websites in Europe and North America collected by ISTARI.AI regarding AI-based or AI-related offerings and the AI technologies employed.
