German businesses are anticipating significant productivity gains from artificial intelligence (AI), according to a recent survey by the Ifo Institute. The survey reveals that 27 percent of companies are already utilizing AI technology, with over two-thirds expecting enhanced productivity in the near future.
The Ifo Institute’s survey, which included approximately 6,000 companies, found that businesses expect AI to increase their productivity by 8 to 16 percent within the next five years. Service providers, retail businesses, and industrial companies have particularly high expectations for AI implementation, while the construction sector shows more modest anticipation. Klaus Wohlrabe, head of surveys at Ifo, notes that this range reflects the uncertainty about AI’s exact impact, emphasizing that “all companies will need to examine whether and how they can use AI.”
Current adoption and future outlook
The survey highlights that just over a quarter of German companies are currently using AI technologies in their operations. This relatively modest adoption rate, combined with the high expectations for future productivity gains, suggests a significant potential for growth in AI implementation across German businesses. The varying expectations across different sectors indicate that the impact of AI may be industry-specific, with some sectors potentially benefiting more than others from AI integration.
