German Industries Slow to Embrace AI, Citing Lack of Expertise and Over-regulation
Industrial firms largely underutilize AI potential, according to Bitkom. - Approximately 75% of industrial businesses fail to capitalize on AI utilization, according to Bitkom.
AI offers numerous benefits for production processes by reducing errors and lowering costs, but many industrial companies in Germany are holding back its implementation due to limited time, insufficient expertise, and excessive regulation. This is according to Lukas Spohr, an expert at Bitkom.
The obstacles aren't stopping the industry from spotting potential. AI applications are highly coveted for energy management (85%), robotics, analytics, and warehouse management.
Bitkom recently conducted a survey of 552 industrial companies with over 100 employees, revealing some intriguing findings.
- Bitkom
- Germany
- Artificial Intelligence
- Industrial companies (Industrieunternehmen)
- Berlin
In the broader scope of things, it seems that a lack of skilled workers (79%), resource constraints (62%), legal uncertainties (related to data protection and the upcoming European AI Act), and cultural issues (perfectionism hindering rapid experimentation) are the primary factors holding back AI adoption in German industries.
It's important to note that only around 12% of German companies have implemented AI applications[1], so there's a significant gap in adoption among industrial firms if the 25% figure mentioned by Bitkom is to be believed. The country's push for digital transformation is progressing, but practical implementation challenges remain[2][3].
[1] "AI Adoption in Germany: Challenges and Opportunities" - Report by Bitkom, 2023
[2] "Digital Germany Initiative" - German Government, 2022
[3] "Germany's Digital Infrastructure and the Role of Data Centers" - Industry Insights, 2023
The community policy should encourage vocational training programs focused on artificial-intelligence and technology to address the shortage of skilled workers in Germany's industrial companies. Moreover, financing for vocational training could ease the burden on industries, enabling them to invest in AI applications for vocational training, robotics, analytics, and warehouse management.
