AI renaissance in Germany: This is how the economy becomes more productive!

AI renaissance in Germany: This is how the economy becomes more productive!

The integration of artificial intelligence (AI) into the German economy represents a key resource for increasing work productivity. According to a current report by the German Economic Institute (IW) on behalf of the Joint Committee of the German Commercial Economy, it is expected that AI can significantly increase productivity by 2030. The IW's Managing Director for Science, Hubertus Bardt, recently presented the results in Berlin and emphasized that AI should lead the economy "back on the productivity path", but will not generate a new productivity miracle.

Since 1991, the performance of the German economy has declined in every decade, with productivity growth of just 0.4 percent in 2024. The trend is not isolated and is also evident internationally. The IW forecasts average productivity growth of 0.9 percent for the years 2025 to 2030 and 1.2 percent by 2040, with over two thirds of this growth being attributable to the use of AI. Overall, a potential of around 3 percent of gross domestic product is expected for the next ten years with the help of AI.

Expectations and necessary conditions

However, in order to meet these expectations, various prerequisites are necessary. Infrastructure, resources and intangible capital assets such as digital networks, computing capacity, specialized software and data are essential. In addition, well-trained specialists must be available. Employers are required to invest in these areas in order to remain competitive in international competition. A positive approach to AI is necessary for both employers and employees in order to successfully transform job profiles and not replace jobs en masse.

The need for individual, holistic AI strategies in companies is highlighted. Training and further education for employees in particular are crucial in order to be able to use AI effectively. Last but not least, data management is a central aspect for a successful AI application. According to heise.de, by 2023, around 58 percent of dependent employees have not yet worked with AI, while only 10.3 percent consider themselves to be experienced in AI.

Regulations and challenges

Another important aspect is the framework conditions that must be provided by the federal government. Regulation should not slow down innovation through excessive bureaucracy. This also includes adapting the German implementation of the EU AI Act to practical corporate reality. Companies are under pressure to know and follow applicable rules and laws while at the same time taking innovative measures.

Currently, 80 percent of companies do not yet recognize how their business model can benefit from AI. Medium-sized companies often have their own IT infrastructures that can already be used for the use of AI. Still, challenges such as data infrastructure are a hurdle for many of these companies. Realizing the full potential of AI also requires tax cuts, low energy costs and fundamental deregulation.

In summary, it shows that AI represents a significant opportunity for the German economy and can make a decisive contribution to returning to a stable productivity path. However, clear strategies and framework conditions as well as active participation from companies are required to make this path successful. Loud employer.de The transformation of job profiles through AI can be expected without a mass replacement of jobs.

The path to the future of work therefore requires long-term efforts at both a business and political level to fully exploit the benefits of AI. How heise.de As noted, AI can be expected to increase efficiency, especially in terms of cost and time savings, which could ultimately lead to an increase in salaries in these professions.