Generative AI is becoming increasingly relevant for German companies: More than half of the companies (53 per cent) are planning to significantly expand their investment activities, according to an update from KPMG.
More than half of these companies even want “to increase their investments by 40 per cent or more.”
Although the topic of generative AI is “being approached more strategically and initial use cases are being implemented, there is still room for improvement: 31 per cent of the companies surveyed have drawn up a strategy, while 49 per cent are planning such a strategy or have already started to implement it.”
More than one in three companies already “has specific use cases in place, while 35 per cent intend to implement use cases in the next 12 months.”
These are the findings of the study ‘Generative AI in the German economy’, for which KPMG in Germany surveyed over 280 decision-makers from the German economy in March 2024.
Benedikt Höck, Partner at KPMG AG Wirtschaftsprüfungsgesellschaft said:
“The phase of experimenting with generative AI is slowly giving way to a phase of implementation. Companies are taking a more strategic approach to generative AI and using the technology on a day-to-day basis. But there is still room for improvement.”
The top three most common AI models currently in use “include Google Gemini (34 per cent), GPT 3.5 / 4.0 (34 per cent) and the German player on the market Aleph Alpha (13 per cent). 36 per cent of companies do not yet have a model in use.”
Overall, companies expect “a number of positive effects from the use of generative AI. Above all, respondents expect an increase in turnover (67 per cent), a higher degree of automation (67 per cent) and lower costs due to greater efficiency (65 per cent).”
On the other hand, the survey participants “also see negative effects. In each case, 37 per cent of them cite job losses, a lack of employee acceptance and problems with data protection.”
Companies also see challenges “in employee training and in the areas of governance and regulation.”
Although 55 per cent of respondents believe ‘strongly or very strongly’ that employees will have to adapt their working methods “to use generative AI effectively, only 38 per cent of them believe they are ‘well or very well’ prepared to train their employees in the use of generative AI.”
Only 8 per cent of companies “have a complete governance model including a committee for managing AI.”
In addition, 63 per cent of companies “do not consider themselves well prepared for the effects of the European Union’s Artificial Intelligence Act.”
