Bringing AI to Industry—From the Office to the Factory Floor

The use of AI is also on the rise in the industrial sector. According to the ifo Institute, approximately 47 percent of companies in the manufacturing sector are already using AI technologies—particularly in the automotive, mechanical engineering, and chemical industries. However, its use has so far often been concentrated on administrative processes. Widespread integration into production has not yet been observed. Nevertheless, case studies and potential analyses show that AI can enable significant efficiency gains in individual industrial sectors. The economic relevance of AI in industry is growing—even if its broad-based productive use is still in its infancy.

Boosting the Economy and Increasing Productivity

AI can make a tangible contribution to overall economic growth—for example, through higher productivity, new business models, and new impetus for research and development. Germany’s potential growth could be approximately 0.3 percentage points higher per year by the end of the decade. Given the currently subdued growth outlook, this would be a significant boost—even if no sudden, dramatic effect is to be expected. The actual results depend heavily on how well AI is integrated across the broader economy—and whether it can have an impact beyond individual pioneering industries.

Overcoming Obstacles and Unlocking Germany’s AI Potential

The economic use of AI in Germany is hampered by several structural factors. Gaps in digital infrastructure, a shortage of skilled workers, and limited financing options—especially for startups—are slowing down momentum. Access to high-quality data and the transfer of scientific findings into marketable applications also remain key challenges. These framework conditions put the modeled productivity effects into perspective and demonstrate that technological potential alone is not enough.

Strategically advancing AI and jointly strengthening Germany as a business location

Germany should leverage its industrial strength in a targeted manner in the development and application of AI technologies. At the policy level, it is essential to create the conditions for broad economic adoption—for example, through investments in sovereign digital infrastructure, the expansion of AI expertise, and an innovation-friendly legal framework. In addition, technology transfer and scaling should be specifically promoted. Companies of all sizes are called upon not only to use AI in isolated cases but to leverage it strategically to reshape business models, value creation, and work organization.