According to a survey released by the Ifo Institute on Friday, the majority of companies are now utilizing Artificial Intelligence (AI) in their operations. Self-reported figures show that 54.5 percent of firms have implemented AI into their business processes, a notable increase from 41 percent the previous year. Furthermore, another 16 percent of companies are planning to deploy AI, and 22 percent are currently discussing its potential use, leaving only about 8 percent where AI is not a factor.
Klaus Wohlrabe, head of Ifo surveys, commented that “Artificial Intelligence has definitively arrived across the German economy” adding that “the momentum in adoption is high”.
AI adoption is particularly pronounced in the industrial sector, where 59 percent of companies employ relevant applications. The service sector also shows wide adoption, with 56 percent utilizing AI. In the retail industry, usage has expanded significantly over the past few years to approximately 45 percent. The construction trade has shown particularly rapid development, with the percentage of companies using AI rising from 7 to around 40 percent within three years.
Overall diffusion of AI usage correlates with company size; large enterprises utilize the technology more frequently (67 percent) than small and medium-sized businesses (51 percent and 47 percent, respectively).
Regarding the types of AI solutions used, external applications dominate. Nearly three-quarters of companies rely on paid external AI solutions. Additionally, 48 percent use free AI applications, while only 22.5 percent rely solely on free systems. Developing proprietary AI systems is far less common, with only about 19 percent of companies undertaking this effort.
Currently, companies primarily employ AI to support existing work processes. AI is frequently integrated into administrative tasks, data analysis, programming, written communication, and information retrieval. Many firms also use AI for planning, controlling, or customer communications. In industry, AI is increasingly becoming vital in production-adjacent areas such as quality control, production planning, and maintenance.
Wohlrabe concluded that companies are implementing AI mainly where they foresee concrete gains in efficiency. He added that AI is opening new opportunities, especially in automating routine tasks and managing large volumes of information.
