Germany in the AI paradox

Only five percent of German companies are already using AI specifically for the structural development of their business, for example through AI agents. This proportion is significantly higher in other markets: 13% in the UK and 11% in Ireland are using artificial intelligence for far-reaching transformations. The study makes it clear that Germany, with the highest AI adoption rate of all the countries surveyed, is fundamentally on an excellent footing. At the same time, there are clear bottlenecks in the areas of leadership, organizational structure, investment decisions and employee empowerment. Use alone does not create value.

In terms of investment, however, Germany is only in the lower midfield. Almost three quarters of the companies surveyed spend a maximum of 20 percent of their technology budget on AI projects. In terms of return on investment, however, Germany is on average: 27% of companies achieve a payback on their expenditure for typical AI applications within one to two years. According to the study, the frontrunner is Poland with 33 percent.

„Germany is underfunding its high ambitions for AI,“ says Björn Bringmann, Managing Director of the Deloitte AI Institute. „Many companies have not yet realized that AI needs to be integrated holistically into their business model. Today, it is often primarily used to increase individual productivity.“

Lack of organizational anchoring

A major bottleneck for the widespread use of AI in Germany is its organizational anchoring: in 33% of companies, responsibility for AI lies with the IT manager or CIO, significantly more than the international average (23%). Only two percent place AI at CEO level. This is the lowest figure of all the markets surveyed (average: ten percent).

„The strong focus on IT shifts priorities towards technical scaling instead of redesigning business processes,“ explains Bringmann. „A transformative effect will only be achieved when top management steers AI throughout the company, with clear responsibility at CEO and board level.“

"Germany is underfunding its high ambitions for AI and many companies have not yet realized that AI needs to be integrated into their business model as a whole.“

Björn Bringmann,
Managing Director,
Deloitte AI Institutee

There is also a gap when it comes to skills: 35% of German respondents see a lack of skilled workers as a major obstacle (internationally: 29%). At the same time, 19 percent of companies do not offer any AI training at all - also more than the average (15 percent).

„In order to exploit the full potential of AI, German companies need to go beyond incremental use cases and see AI as a driver of innovation,“ says Bringmann. „This requires targeted investment, stronger governance structures and a clear understanding among top management of how AI is changing business models, processes and decision-making logic.“ (Source: Deloitte)