AI Revolutionizing German Industries
Businesses progressively lean on artificial intelligence for their operations.
The German economy is spiraling up the use of Artificial Intelligence (AI), making significant strides in its integration. As per current stats, a whopping 40.9% of businesses are already using AI, a spike from 27% the previous year. Intriguingly, 18.9% are planning to introduce AI in the coming months, revealing a growing trend. As Klaus Wohlrabe, head of ifo surveys, notes, "AI is gaining traction as a strategic concern for businesses". The challenge lies in harmoniously incorporating AI into existing workflows.
Notably, AI implementation has witnessed a significant leap in the construction and retail sectors. The construction industry saw a rise from 7.1% to 25% in just two years, while retail surged from 10% to nearly 34%. Industries like manufacturing and the service sector have shown over 40% AI utilization. It's a clear shift: talk is turning into action for many companies, says Wohlrabe.
Degree of AI usage varies by industry. Advertising and market research are frontrunners, with 84.3% AI usage, followed closely by IT service providers (73.7%). The auto industry is also heavily relying on AI-backed data in production, with 70.4% usage, while the chemical industry and mechanical engineering hover around 50%. More reserved are sectors like hospitality (31.3%), food and beverage manufacturers (about 21%), and textile producers (18.8%).
Interestingly, big players are more likely to embrace AI, with 56% AI adoption for large companies, compared to 38% for SMEs and 31% for micro-enterprises. Yet, smaller companies are increasingly intrigued - many are in the discussion or planning phase.
Retail is one of the sectors where AI is least discussed, with 22.2% of companies not considering it a priority. While many firms in the hospitality and construction sectors are already on board, around 27% remain cautious about their future AI strategy. According to Wohlrabe, these sectors remain more reserved about AI implementation compared to others.
As of June 16, 2025, this research was provided by the ifo Institute.
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Other industries, such as hospitality and food & beverage manufacturing, exhibit less AI usage compared to front-runners like advertising and market research. Artificial intelligence could potentially be a strategic concern for these sectors, especially as other technology advances continue to revolutionize German industries.
