Notable Variations in Artificial Intelligence Application Within Businesses Across East and West
In a recent survey conducted by Civey on behalf of the Association of the Internet Industry e.V. (eco), it has been revealed that Germany is experiencing a significant disparity in the adoption of Artificial Intelligence (AI) between companies in Eastern and Western regions.
The study, which involved 500 IT decision-makers online, found that approximately two-thirds (68%) of companies nationwide use AI tools. However, this figure drops significantly in Eastern Germany, where only around 52% of companies are currently employing AI, compared to Western Germany's 71.2%.
The gap in AI adoption between the two regions is primarily due to regional disparities in digital infrastructure, human capital, and innovation capacity. States such as Brandenburg, Saxony-Anhalt, and Mecklenburg-Vorpommern have significantly lower scores on the European Commission’s Digital Economy and Society Index (DESI), reflecting weaker broadband access, fewer digital services, and less support for innovation compared to Western states like Bavaria, Baden-Württemberg, and Hesse.
These lower DESI scores translate into limited AI adoption capabilities in Eastern Germany, where digital infrastructure and skilled personnel are scarcer. Around 10% of the variation in AI adoption is explained by differences between federal states, underscoring the impact of territorial affiliation and regional investment policies.
Germany faces a major shortage of AI professionals, with a 78% talent gap in 2024—32,000 AI professionals available versus a demand for 146,000. This shortage exacerbates regional disparities as AI talent tends to be concentrated in Western economic hubs like Berlin and Munich, while Eastern regions struggle more acutely.
Moreover, the concentration of AI startups and funding in the West supports faster integration and use of AI technologies in businesses. Berlin is the top AI city followed by Munich, hosting successful companies and benefiting from higher AI funding growth.
Security concerns are the second biggest obstacle for 40% of companies in introducing innovative AI tools. Lack of know-how within the company is a significant barrier for around 30%, while the unclear legal situation is a hurdle for 41%. Lack of business models and application areas is a concern for 28% of companies.
Oliver Süme, board chairman of eco, stated that the study indicates Germany is developing a "digital two-tier society" due to the uneven distribution of AI use. If the East does not catch up quickly, a digital two-tier society may emerge, he warned.
The results of the survey are representative due to quotas and weighting. The survey also found that security concerns and unclear legal situations are the biggest obstacles for companies in introducing innovative AI tools.
In conclusion, the study highlights the need for targeted policy measures to improve infrastructure, foster AI skills development, and enhance innovation ecosystems in Eastern German states. This is crucial to ensure a balanced and inclusive AI landscape in Germany and prevent the emergence of a digital two-tier society.
[1] European Commission, Digital Economy and Society Index (DESI),
What could be the reason for a tech company in Eastern Germany to lag behind in adopting artificial-intelligence compared to their counterparts in Western Germany? The disparity in digital infrastructure, human capital, and innovation capacity between the regions contributes greatly, as reflected by lower scores on the European Commission’s Digital Economy and Society Index (DESI).
