Digitalisation of the Economy: Almost every company is engaging with AI

41 per cent already use artificial intelligence
48 per cent are planning or discussing it Companies see almost exclusively benefits from their digital transformation so far
But one in two businesses is struggling to manage digitalisation — and for 13 per cent it poses an existential threat

Artificial intelligence is becoming the most important driver of digitalisation in the German economy. 41 per cent of companies with 20 or more employees now use AI, with a further 48 per cent planning or discussing its adoption. A year ago, only 17 per cent had AI in use, while 40 per cent were still in the discussion phase. For three quarters (77 per cent) of companies currently using AI, it has improved their competitive position. 52 per cent report a measurable contribution from AI to their business success, and two thirds (66 per cent) intend to expand their use of AI further. These are the findings of a representative survey of 604 companies with 20 or more employees in Germany, commissioned by the digital association Bitkom.

"Artificial intelligence is the decisive driver of greater productivity and efficiency worldwide. German businesses are picking up the pace when it comes to AI adoption," said Bitkom President Dr. Ralf Wintergerst. "AI is not just about who builds the best language model — it is about deployment wherever Germany's economy is strong, be it in industry, pharmaceuticals, or medical technology."

The broad majority of companies are currently drawing a positive conclusion from their digitalisation efforts to date. 77 per cent say digitalisation has brought them more advantages, with 16 per cent reporting significant advantages. At the same time, only 10 per cent see the German economy as a global leader in digitalisation, while 16 per cent place it among the laggards and 7 per cent consider it to have fallen behind entirely. For the large majority (63 per cent), Germany ranks somewhere in the middle. Three quarters of companies (78 per cent) believe that the current crisis facing the German economy is also a crisis of hesitant digitalisation.

Despite the overwhelmingly positive assessment of digitalisation's effects, around half of businesses in Germany (51 per cent) are currently struggling to manage the process. 13 per cent even see their company's existence under threat from digitalisation — up from just 7 per cent a year ago and 4 per cent in 2024. Two thirds (65 per cent) observe that competitors within their own industry who embraced digitalisation early are now ahead of them. One in five (20 per cent) sees its market position threatened by emerging startups. "When it comes to digitalisation, Germany is divided: we have companies that rank among the best internationally, and others that risk being left behind," said Wintergerst. "Our shared goal must be to bring everyone along — in particular the broad base of smaller and medium-sized businesses."

Companies discover their data treasure

For businesses, the issue goes beyond individual improvements and efficiency gains. 42 per cent say their business model is changing as a result of digitalisation. The use of existing data plays a particularly crucial role in this shift. One third (32 per cent) is already tapping into the potential of their data, with 5 per cent saying they are exploiting it fully. Conversely, 6 in 10 (61 per cent) are making little or no use of their data: 48 per cent say they are underutilising its potential, while 13 per cent are not using it at all. However, 3 in 10 companies (29 per cent) that are not currently making use of their data potential are taking steps to change that. A further 43 per cent are planning to do so or are discussing it.

"Many German companies are sitting on a data treasure they have yet to unlock — and of which they are often completely unaware," said Wintergerst. "This data can form the foundation for a genuine leap in digitalisation, whether through the use of artificial intelligence or the development of new business areas."

Digital innovation is getting easier

Overall, the German economy is making progress in developing digital innovations, albeit slowly. Around one in four companies (23 per cent) finds it easy to develop new digital products or services, up from just 16 per cent a year ago. Conversely, 40 per cent say they find it difficult — down from 51 per cent the previous year. The proportion of companies that develop no digital products or services at all remains virtually unchanged at just over one third (34 per cent; 2025: 31 per cent).

At the same time, digital revenues play an important role for the German economy. Only 6 per cent expect to have no digital business at all in five years' time. 9 per cent, on the other hand, anticipate generating at least half of their revenue digitally. The large majority (56 per cent) expect digital revenues to account for between 10 and 50 per cent of turnover, while 8 per cent expect less than 10 per cent. Around one in five companies (21 per cent) is unable or unwilling to make a forecast.

"Those who hold responsibility within a company should set ambitious targets to grow their digital business. Anyone with a successful — perhaps even globally leading — product today must consider how it can be enhanced with digital services and new applications," said Wintergerst.

Although one in five companies (20 per cent) finds its market position threatened by emerging startups, most businesses remain hesitant when it comes to cooperating with them. Two thirds (67 per cent) do not work with startups at all, while 31 per cent do so in one form or another. 2 per cent have spun out a startup from within their own organisation, 3 per cent have established dedicated programmes such as incubators or accelerators, and 9 per cent hold financial stakes in startups. 14 per cent are developing products and services jointly with startups, and 28 per cent collaborate with startups in other ways, such as through founders' competitions.

"For us to see genuine leaps in digitalisation, we need more exchange and collaboration between established and young companies," said Wintergerst.

AI is not only seen as crucial for the Economy — It is reaching the mainstream

When it comes to the use of digital technologies in business, AI has taken the lead. 86 per cent believe AI is of great importance to the economy, 41 per cent are now using it themselves, and a further 48 per cent are planning or discussing its adoption. This is followed by the Internet of Things (IoT), which 82 per cent consider highly important and 34 per cent are already using, with 47 per cent planning or discussing it. Robotics is seen as highly important by 81 per cent (38 per cent users, 27 per cent planning or discussing), autonomous vehicles by 69 per cent (22 per cent users, 31 per cent planning or discussing), virtual and augmented reality by 67 per cent (28 per cent users, 30 per cent planning or discussing), and drones by 48 per cent (26 per cent users, 23 per cent planning or discussing).

Significant gaps between perceived importance and actual usage exist for three technologies. 55 per cent consider blockchain to be economically significant, but only 4 per cent use it, with 13 per cent planning or discussing adoption. For the metaverse, 35 per cent see great potential, while only 4 per cent have deployed it and a further 9 per cent are planning or discussing it. Quantum computing is considered highly significant by 54 per cent, yet it is currently almost entirely absent from practical use, with 5 per cent planning or discussing it.

"Not every technology is suited to every company, and those who digitalise must set priorities," said Wintergerst. "What matters is gaining experience with the technologies that could have a major impact on your own business — so as not to be too late and then face an arduous catch-up."

Companies that are already using AI tend to assess themselves modestly. 30 per cent consider themselves pioneers, 62 per cent latecomers, and no one believes they have missed the boat entirely. One third (33 per cent) have found that AI has led to significantly higher costs than originally anticipated. However, for 45 per cent, internal processes have been noticeably accelerated; 44 per cent have improved their products or services as a result; and 29 per cent have even developed new products or services thanks to AI. 19 per cent say they have cut jobs as a result of AI.

One in three companies wants to invest more in digitalisation

Companies' willingness to invest in digitalisation is picking up in 2026 despite challenging economic conditions. 36 per cent intend to invest more this year than last, compared with 29 per cent in 2025 and just 21 per cent in 2024. Conversely, only 13 per cent want to scale back their investments, down from 25 per cent in 2025 and 30 per cent in 2024. 51 per cent plan to maintain their current level of investment.

"Digital transformation does not come free of charge. But the barriers to entry — especially when it comes to artificial intelligence — are extremely low," said Wintergerst.

Barriers to digitalisation: No time, no people — and data protection

The biggest obstacles to digitalisation cited by businesses are data protection requirements (77 per cent) and a shortage of skilled workers (70 per cent). Further barriers include technical security requirements (61 per cent), a lack of market-ready solutions (43 per cent), and insufficient exchange with other companies (31 per cent). Internal hurdles are also frequently identified: 66 per cent cite a lack of time, 48 per cent insufficient financial resources, 40 per cent lengthy decision-making processes, 37 per cent insufficient risk appetite, and 26 per cent a lack of knowledge about best practice. Less significant factors are a lack of willingness to digitalise among staff (21 per cent) and uncertainty about the economic benefits (13 per cent).

"For digitalisation to succeed, it must be driven from board or executive level — whilst also bringing employees along," said Wintergerst.

Businesses are also calling on policymakers to step up. 80 per cent warn that Germany will experience economic decline without digitalisation. 84 per cent demand that digitalisation be a top priority for the Federal Government. "The Federal Government has demonstrated — through the establishment of a dedicated Ministry for Digital Affairs — that it recognises the importance of the issue. In key areas such as the modernisation of public administration through the Deutschland-Stack and the planned introduction of digital identities in 2027 via the EUDI Wallet, the right course has been set. The challenge now is to deliver tangible results swiftly — for businesses and citizens alike," said Wintergerst.