Software

IBM: Global AI market study by IBM – 44% of German companies surveyed are still in the trial phase

January 10, 2024. A new study commissioned by IBM (NYSE: IBM) found that around 32% of German companies with over 1,000 employees are already actively using AI in their business. The early adopters of AI technology are also leading the way in terms of future plans: 52% of companies already working with AI in Germany intend to increase their investment in this technology. However, there are still hurdles to the introduction of AI in companies. These include, in particular, the recruitment of suitably qualified employees, ethical concerns regarding AI and the integration or scaling of AI projects.

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“We are seeing that the early adopters who have overcome barriers and deployed or trialed AI are already benefiting and making further investments. Key factors driving the adoption of AI at the enterprise level are more user-friendly AI tools, more AI integrated directly into standard business applications and the automation of key processes,” said Hardy Gröger, Distinguished Engineer and Director, Software Technical Sales DACH at IBM. “We also observe that companies are using AI especially for use cases where the technology can quickly have a profound impact, such as IT automation, digital work, search and knowledge discovery. For the 44% of companies that are still in the early stages of evaluation, 2024 will be the year when they will need to address and overcome barriers such as skills shortages and the complexity of data quality and handling.”

Highlights of the “IBM Global AI Adoption Index 2023” by Morning Consult on behalf of IBM:

In recent years, the adoption of AI in large companies has remained constant:

  • 32% of IT professionals in large German companies report that their organizations have actively implemented AI, while 44% of companies worldwide have done so. A further 44% of German companies are actively exploring the use of this technology, compared to 40% of companies worldwide.
  • In addition, 33% of IT experts in German companies report that their organization is actively implementing generative AI, and a further 46% are exploring its use. The global average here is 38% and 42% respectively.
  • At 32%, large German companies are behind the international leaders when it comes to AI implementation. India (59%), China (50%), Singapore (53%) and the United Arab Emirates (58%) are at the top when it comes to the active use of AI. Bringing up the rear in a global comparison are Australia (29%), Spain (28%) and France (26%).
    Most companies that are actively using or investigating AI have accelerated rollouts or investments in the last 24 months:
  • 52% of IT experts in German companies that are using or investigating AI state that their company has accelerated investments in AI or the rollout of AI in the last 24 months. Globally, 59% of experts said this.
  • In terms of AI investments, Germany is in the global midfield: 52% of large companies stated that they will accelerate their AI investments. China
    (85%), India (74%) and the United Arab Emirates (72%) are the markets most likely to intensify their AI rollout. Companies in the UK (40%), Australia (38%) and Canada (35%), on the other hand, are least likely to accelerate the rollout.
  • Supplementing human tasks with digital work (40%) and building their own AI solutions (39%) are the most important AI investments in companies researching or using AI in Germany. Internationally, however, research and development (44%) and retraining/staff development (39%) are the most important investments.
    The increasing embedding of AI in standard applications and easier-to-use AI tools are driving AI adoption in large German companies:
  • The increasing integration of AI into standard business applications (44%), advances in AI tools that make it easier to use (41%) and the need to reduce costs and automate key processes (40%) are the most important factors driving AI adoption in Germany.
  • For German IT experts, the two most important AI innovations in recent years are solutions that are easier to implement (40%) and that better meet business requirements (37%).
  • Companies that are already testing or using AI are doing so in numerous and important areas of their
    business activities. These include:

o    Automation of IT processes (31%)
o    Digital work (27%)
o    Automation of business processes (26%)
o    AI monitoring or governance (25%)
o    Search and knowledge discovery (23%)
o    Network process automation (21%)
o    Security and threat detection (21%)
o    Marketing and sales (21%)
o    Automating the understanding and processing of documents (20%)
o    Automating self-service responses and actions for customers or employees (20%)
o    Supply chain insights (20%)
o    Business analytics or intelligence (19%)
o    Fraud detection (19%)
o    Human resources and talent acquisition (18%)
o    Financial planning and analysis (15%)

Hindrances are preventing more German companies from benefiting from AI:

  • One in five (21%) companies in Germany do not have suitably qualified staff to use new AI or automation tools and 15% cannot find new employees with the right skills to fill this gap.
  • Only 29% are currently training or retraining employees to handle new automation and AI tools.
  • IT professionals see the need for trustworthy and controlled AI, but practical implementation is difficult for companies:
  • German IT professionals largely agree that consumers are more likely to choose services from companies with transparent and ethical AI practices (78% strongly or somewhat agree). They also say that it is important for their company to be able to explain how their AI made a decision (78% in those companies researching or using AI).
  • However, many companies already using AI face obstacles in doing so. As a result, far fewer than half of German companies are taking important steps towards trustworthy AI. These include minimizing bias (28%), having traceable data provenance (37%), ensuring they can explain the decisions of their AI models (41%), or developing ethical AI policies (38%).

Methodology:

This survey was conducted in November 2023 among a representative sample of 8.584 IT professionals in Australia, Canada, China, France, Germany, India, Italy, Japan, Singapore, South Korea, Spain, United Arab Emirates, United Kingdom, United States and LATAM (Argentina, Brazil, Chile, Colombia, Mexico and Peru). To qualify for the survey, respondents must be employed full-time, work in organizations with more than one employee, hold a managerial or higher position and have at least some knowledge of the operation and use of IT in their organization. Global results have a margin of error of +/- 1 percentage point.

Information about IBM

IBM is a leading provider of global hybrid cloud and AI and consulting expertise. We help clients in more than 175 countries harness insights from their data, optimize business processes, reduce costs and gain competitive advantage in their industries. More than 4,000 government and enterprise organizations in critical infrastructure sectors such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to make their digital transformation fast, efficient and secure. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting provide our clients with open and flexible options. All of this is backed by IBM’s legendary commitment to trust, transparency, accountability, inclusion and service.

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Further links

👉 www.ibm.com

Graphic: IBM

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