Concerns and Uncertainty Impede AI Adoption in Companies

Research

EFI Report 2024 Published

Handover of the EFI Annual Report 2024 to German government

The Commission of Experts for Research and Innovation (EFI) presented its latest annual report to Chancellor Olaf Scholz today. In the report, the commission notes that Germany and the European Union urgently need to catch up in the development and use of artificial intelligence. AI is a key technology that will decisively shape technological and economic development in the coming years.

“AI can open up innovation and growth potentials in many technology sectors and industries, such as product engineering or the pharmaceutical industry," explains Professor Irene Bertschek, head of the “Digital Economy” Unit at ZEW Mannheim and deputy chair of the Commission. “To harness the potentials of AI, it needs to be widely adopted across the economy,” adds Bertschek.

Still significant barriers to the use of AI

The ZEW survey shows that by 2023, only ten per cent of companies in the manufacturing industry and 30 per cent in the information industry will be using AI, while around a quarter of both sectors are planning to use it in the future.

The lack of widespread adoption is evident in a representative survey conducted by ZEW on behalf of the expert commission. In 2023, ten per cent of manufacturing companies and 30 per cent of companies in the information economy in Germany had implemented AI. Another quarter of companies in both sectors planned to use AI in the future. Very few companies claimed to have a high level of competitiveness in terms of AI, with only six per cent in the manufacturing industry and 15 per cent in the information economy.

The survey results also show that several factors are inhibiting a broader implementation of AI. “Companies in both manufacturing (72 per cent) and the information economy (68 per cent) perceive a lack of time and staff capacity as the biggest obstacle. Additionally, many companies are still uncertain about the expected benefits and have concerns regarding the maturity and reliability of AI. Missing knowledge within companies and a shortage of skilled professionals are further factors inhibiting AI adoption,” says Bertschek, summarising the survey results on the barriers to AI use.

Other topics in the EFI Report 2024 include new technologies for sustainable agriculture, international mobility in the science and innovation system, and social innovations.