40% of German SMEs use AI

A significant portion of Germany's mid-sized businesses is now utilizing artificial intelligence (AI), according to a recent study conducted by IW Consult on behalf of the eco association, which represents the internet economy in Germany. The research reveals that 40 percent of German companies have integrated AI into their operations, marking a substantial increase compared to previous years. This growth reflects a shift from experimental stages to more practical applications within various sectors of the economy. The study indicates that since 2024, there has been an 118 percent rise in the adoption of AI technologies among German enterprises. This surge suggests that AI is no longer just a topic of interest for large corporations but has permeated all levels of the business landscape. Even smaller businesses employing fewer than 50 individuals show a usage rate approaching 40 percent, highlighting the widespread integration of AI across different company sizes. Despite this progress, 60 percent of German companies still do not utilize AI technology. Those who refrain from adopting AI cite several reasons, including perceived irrelevance to their business models, lack of capacity, and concerns related to data protection. These factors underscore the challenges faced by many organizations in implementing AI solutions effectively. The application of AI is transforming both office environments and manufacturing floors, significantly impacting the labor market. According to the study, AI competencies are no longer solely required by specialized IT professionals. Instead, these skills are becoming essential across various departments, ranging from production and logistics to quality management. In the industrial sector, the proportion of job postings requiring AI-related skills at the specialist level increased from 10 percent in 2019 and 2022 to 17 percent in 2025. This evolution highlights how proficiency in AI is emerging as a fundamental and cross-cutting skill across industries. To gather insights into AI usage statistics, IW Consult surveyed 500 companies in Germany, ensuring the data was weighted according to enterprise size. Additionally, researchers analyzed approximately 55 million online job advertisements between 2019 and 2025 to understand changes in the labor market dynamics influenced by AI. IW Consult, based in Cologne, operates as a private research and consulting firm and is a fully owned subsidiary of the Institute of Economics (IW). According to the IW study, the notable increase in AI adoption can be attributed to a specific strategy employed by German firms. Rather than investing heavily in developing entirely new foundational language models, German companies focus on applying and specializing existing global base models. They adapt these models using industry-specific data to enhance their processes rather than reinventing them from scratch. This approach allows for efficient utilization of available resources while addressing particular operational needs within various sectors.