(de-news.net) – Artificial intelligence (AI) has become mainstream across the German economy, with a majority of firms now using the technology and many others planning adoption. Usage remains highest among large companies and in industry, while construction has recorded the fastest growth. Most businesses rely on external AI solutions and primarily apply the technology to improve efficiency in existing workflows.
According to an Ifo Institute survey, AI has become firmly embedded across the German economy, with a majority of businesses now integrating the technology into their operational processes. The survey indicates a substantial year-over-year increase in adoption, as the share of companies utilizing AI rose from 40.9% to 54.5%. Beyond those already employing the technology, an additional 16% of firms reported plans to implement AI, while 21.6% stated that adoption was still under consideration or active discussion. These figures suggest that AI has moved beyond the early-adoption stage and is increasingly becoming a mainstream business tool. Klaus Wohlrabe, head of Ifo’s surveys, noted that AI had achieved broad penetration throughout the corporate sector and emphasized that the pace of implementation remained strong, reflecting continued momentum in digital transformation efforts.
Despite the broad diffusion of AI technologies, notable differences remain across sectors of the economy. Industrial companies report the highest level of adoption, with 58.7% making use of AI-related applications, underscoring the technology’s growing role in production-oriented environments. The services sector follows closely behind at 56.2%, indicating similarly widespread integration. Retail businesses have also expanded their use of AI over time, with adoption gradually rising to nearly 45%. Particularly striking growth has occurred in the construction industry, where the proportion of companies using AI increased from 7.1% to 39.8% within a three-year period. This sharp increase highlights the accelerating spread of AI into sectors that historically exhibited lower levels of digital technology adoption.
Large enterprises still outpace smaller firms
The extent of AI adoption continues to be closely associated with company size. Large enterprises remain the most active users, reporting an adoption rate of 67.2%, well above the levels recorded among smaller organizations. By comparison, 51.2% of small businesses and 47.2% of medium-sized firms have incorporated AI into their operations. The survey also indicates that most companies rely primarily on externally developed solutions rather than in-house systems. Nearly three-quarters purchase commercial AI products, while 48.4% supplement their activities with free applications. In contrast, 22.5% depend exclusively on free tools, and only 18.7% have developed proprietary AI systems of their own. These figures point to the predominance of readily available external technologies as the preferred route for implementation.
Current applications of AI remain focused largely on enhancing and streamlining existing business processes. The technology is most frequently employed in areas such as administration, data analysis, software development, business correspondence, and information retrieval. Its use is also becoming increasingly common in planning, management, and customer communication functions, where automation and decision support can improve efficiency. Within manufacturing environments, adoption is extending into operational activities, including quality assurance, production scheduling, and maintenance. Wohlrabe stated that companies were primarily deploying AI in areas where measurable efficiency gains could be realized, particularly in routine tasks and in the processing of large volumes of information. As a result, AI is being used chiefly as a tool to support and optimize established workflows rather than to fundamentally alter business operations.
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