Many rules, few benefits: German companies reluctant to invest in AI

Compared to the rest of the world, German companies are rather hesitant to invest in AI. Many are worried about the legal situation, only a few see a benefit.

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3 min. read

In the coming months, 73% of companies worldwide are planning to invest in artificial intelligence. In Germany, the proportion is only 65 percent. This is the result of a survey conducted by the Boston Consulting Group (BCG), which was made available to the iX editorial team. Only a quarter of companies have so far recognized the benefits of using AI applications. Nevertheless, just under a third of companies intend to invest more than 25 million US dollars. The majority of companies are not planning to cut jobs due to AI tools.

More than half of the managers surveyed in Germany feel restricted by the legal situation when it comes to the use of artificial intelligence. This is the highest figure in a global comparison, with the average being 44 percent. Likewise, 62% of German companies are concerned about the data security of AI, while 44% fear a loss of control. “Clear, practice-oriented guidelines on the use of AI are needed to reduce barriers to investment,” says Andrej Levin, Partner at BCG.

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Levin attributes the fact that the majority of companies have not yet seen any benefit in AI tools to the way they are introduced into everyday working life. This usually takes place under the management of technology teams. Successful integration requires the support of management, he explains. There is also a lack of guidelines and monitoring. Worldwide, 60 percent of companies do not yet measure key performance indicators for AI applications; in Germany, the proportion is almost 70 percent.

In German companies, 95% of managers state that they do not expect the number of employees to fall as a result of the use of AI. Instead, they want to train their employees in the use of artificial intelligence. Only in 30 percent of German companies has more than a quarter of the workforce taken part in such training, although the AI Act will make this mandatory in the EU from February. In an international comparison, Germany lags behind countries such as Singapore and Japan.

In Germany, 30 percent of managers surveyed are considering the use of AI agents. This is just above the global average. In the USA, the proportion is 37%, in Spain 38%. “Many companies still seem to be at a playful stage when it comes to introducing AI,” says Levin, assessing the situation. However, he warns that it is important to define clear goals for use and work towards them.

For the study, BCG surveyed around 1800 C-level executives from 19 countries and 12 sectors, including technology, financial services and energy. Just under 200 respondents were from Germany. Suppliers and operators of data centers have also recently benefited from investments in AI.

(sfe)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.