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Companies are falling behind AI expectations

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Shortage of skilled workers slows down introduction of AI in Germany.

The ongoing shortage of skilled workers is causing many German companies to lag behind in preparing for the introduction of AI tools. Therefore, the IFS study shows that more than half of the respondents (54 percent) have only obtained offers and started structured pilot projects - without having a clear strategy and being able to demonstrate tangible results (28 percent). About 14 percent are in the research phase, where uncontrolled tests are conducted. And a further 4 percent have no coordinated approach at all. Despite these challenges, optimism prevails! Because 51 percent believe that AI could improve their company in one to two years. About a quarter (24 percent) even assume that a significant positive development can be observed within a year.

This is what companies hope for from the introduction of AI.

The respondents see the greatest impact of generative AI in intelligent production and service delivery in terms of effectiveness and business and operational management (23 percent). About a fifth of the respondents also see significant impacts on growth and decision-making (21 percent). In addition, significant influence is also attributed to the qualification and retention of employees as well as the innovation of new products and services (20 percent each).

The role of data is recognized, but not really played.

In order to take advantage of these benefits, companies must make proper use of their most strategically important asset, as IFS notes. And that is their data. Because only the right amount and quality of data determine the success of AI applications. About 87 percent of respondents recognize the importance of real-time data for successful AI projects. But despite this realization, only a quarter of them have created a base that supports both data-based business decisions and real-time reactions. In addition, only 34 percent have mostly structured data.

The results give hope, but also surprise.

"AI is clearly on its way to becoming the most significant business tool so far," notes Christian Pedersen, Chief Product Officer at IFS, in light of the study results. But it also shows that there are still fundamental misunderstandings about how to use the potential of AI in an industrial environment. It is telling that AI is expected to significantly reduce costs and increase margins. However, the lack of a corresponding strategy for implementation shows that most companies are not sufficiently qualified and prepared to achieve these goals, according to Pedersen. The value of artificial intelligence, however, does not lie in a single function, but in the holistic deployment for all products and business processes. Pedersen concludes: "This supports the decision-making cycles of customers and provides the data and AI services necessary for faster value creation."

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