German industrial giants are racing to employ artificial intelligence before the United States and China surpass them.
The largest German industrial companies are investing billions of euros in artificial intelligence to modernize factories, robot fleets, and smart data centers. Despite the growth in the use of artificial intelligence, experts warn of the need to accelerate, or Germany will lose its edge against the United States and China.
Companies like Siemens, Volkswagen, and BASF are leading experiments in artificial intelligence, including digital twin factories and generative AI to improve production. However, most projects remain in experimental stages due to safety concerns, regulations, and a cautious corporate culture.
The German government sees artificial intelligence as essential for economic growth. Chancellor Friedrich Merz pointed out the global race with the United States and China during the launch of the European supercomputer "Jupiter", emphasizing that Germany and Europe have a chance to catch up in the AI-driven economy.
The reliance on artificial intelligence is increasing: more than 40% of German companies use it in business operations, with industry giants leading the scene. The automotive industrial sector integrates artificial intelligence into more than 70% of production lines, while software and insurance companies like SAP and Allianz employ artificial intelligence in corporate solutions and risk management.
Challenges remain. Germany faces a shortage of qualified personnel, difficulties in accessing advanced chips, and regulatory uncertainty under the EU Artificial Intelligence Act. Studies indicate that more than a quarter of companies expect to reduce jobs due to artificial intelligence, despite increased demand for labor. Experts emphasize that successful adoption requires a balanced investment in strategy, training, and industrial policies.
The potential returns are huge: McKinsey expects artificial intelligence to boost annual productivity growth by 1.5%, increase GDP by up to 450 billion euros, and reduce electricity consumption in factories by a quarter. German industry leaders must act quickly to turn experiments into transformative growth before global competition surpasses them.