IW study

No "productivity miracle" to be expected from AI

Many companies have high hopes for artificial intelligence. A study by the German Economic Institute has dampened expectations. Politicians and companies need to do more.

© Iris,Helen,silvy/Pixabay

Berlin (dpa) - According to a study, artificial intelligence (AI) will not trigger a "productivity miracle" in Germany in the coming years. The use of AI will increase productivity, according to the report by the German Economic Institute (IW) on behalf of the Joint Committee of German Industry and Commerce. However, the study concludes that the great potential of AI applications for productivity has so far only been insufficiently exploited in Germany.

"Many of the problems are structural - i.e. home-made"

Helena Melnikov, Managing Director of the German Chamber of Industry and Commerce (DIHK), commented on the study: "We are currently experiencing exciting times with enormous global challenges and a severe economic crisis in our own country. This shows that many of the problems are of a structural nature - in other words, home-made." However, there are currently great opportunities for concrete improvements. This applies above all to the rapid technological development. Melnikov called for greater use to be made of AI in particular.

A mixed picture in international comparison

According to the study, relatively few companies in Germany are still actively using AI: Only one in four to five companies are using the technology. An international comparison reveals a mixed picture. Although Germany is still above the EU average when it comes to the introduction of AI in companies, it is in eleventh place behind the EU leaders Denmark, Finland and the Netherlands. In a projection for the years 2025 to 2030, the IW expects annual productivity growth of 0.9% for Germany and 1.2% for the years 2030 to 2040.

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Legal certainty and checklists to help

In order to use and develop AI in Germany more quickly, the IW recommends several measures to politicians and businesses. According to the study, the German government should implement the EU regulation on AI (AI Act) promptly in order to create legal certainty for affected companies. According to the study, small and medium-sized enterprises also need practical checklists and other implementation aids in order to be able to implement the AI regulation with little effort and in compliance with the rules.

IW recommends building new data centers

According to the study, the next German government should also make the infrastructure fit for AI - for example, by building new data centers and expanding the broadband network. The quality of the data infrastructure in particular will determine whether AI can be used and applied successfully, according to the study. Fast planning and approval processes are essential for these investment measures.

The Cologne Institute for Economic Research (IW) is a private economic research institute that is committed to a liberal economic and social order. It is considered to be close to employers.

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