SMEs Increasing Use of Artificial Intelligence
Germany: The proportion of small and medium-sized enterprises (SMEs) in Germany using artificial intelligence (AI) has grown significantly. Between 2022 and 2024, 20 percent of SMEs utilized AI, according to KfW Research.
The adoption of artificial intelligence (AI) among small and medium-sized enterprises (SMEs) in Germany has seen a substantial increase. KfW Research findings indicate that 20 percent of SMEs were using AI between 2022 and 2024, a significant rise from just four percent in the 2016-2018 period. This translates to nearly 780,000 businesses.
Larger companies and those with international operations are leading in AI adoption. Among businesses with over 50 employees, 36 percent now use AI, up from six percent in the earlier period. Even smaller businesses with fewer than five employees have shown increased AI usage.
Companies engaged in research and development (R&D) are almost three times more likely to use AI compared to those without R&D activities, with a 53 percent adoption rate. Businesses systematically pursuing digitalization strategies also show a higher propensity for AI use.
Internationally active firms are nearly twice as likely to employ AI than businesses whose sales markets are limited to a 50 km radius. "Internationally active companies tend to face greater competitive pressure," stated Dirk Schumacher, Chief Economist at KfW. "For them, the early adoption of new technologies is particularly crucial for maintaining competitiveness."