Are We Slipping Behind? Germany's Struggle to Catch the AI Wave
AI talent is in high demand among German businesses
The German job market has been sluggish when it comes to Artificial Intelligence (AI) development, as shown by an analysis of over 60 million online job listings between 2019 and 2024 by the Bertelsmann Foundation. Stagnating AI job postings since 2022 could leave German companies at a global disadvantage, warn experts.
Companies themselves are concerned about falling behind in the AI race, with many already feeling left in the dust, according to the foundation, citing a survey by the digital association Bitkom. "Companies need to reassess their business models," said Michael Hüther, director of the Institute of the German Economy. He advocated for greater investment in employee competencies and a smooth implementation of the AI regulation.
Although AI adoption is on the rise, personnel with the necessary skillset is still scarce on the market, according to the study. The number of job postings for computer scientists, software developers, and other AI specialists increased from 97,000 to 180,000 between 2019 and 2022—but this accounts for just 1.5% of all job listings.
AI: The Booming Industry That's Passing Us By?
The total number of AI job offerings has decreased since 2022, to around 152,000 listings. However, the overall job market has contracted due to economic instability, so the proportion of AI jobs remains relatively consistent. In contrast, the proportion of job listings in the renewable energy sector keeps climbing, reaching 3.8% of all job listings, despite economic downturns in 2023 and 2024.
When companies seek AI-savvy employees, job postings are primarily targeted at highly trained AI specialists rather than novice AI users. This holds true for fields like advertising, marketing, and sales.
Regionally, there are variations in AI's significance within the job market. While AI plays a minor role in half of Germany's districts and independent cities, certain locations, such as Munich, Karlsruhe, and the Böblingen district near Stuttgart, stand out for their concentration of AI-related jobs. AI hotspots can also be found in other regions, including southern and southwestern Germany, metropolitan areas along the Rhine and Ruhr, and the Berlin metropolitan area.
Skilled Worker Shortage and Global Competition
Germany is struggling to find AI experts due to a larger skilled worker shortage affecting various sectors, including IT and engineering. The shortage is driven by an aging population, declining birth rates, and rapid technological progress. Additionally, the global demand for AI skills has skyrocketed, making it difficult for countries like Germany to attract and retain AI talent, with countries such as the US and China providing competitive salaries and benefits.
Potential Consequences for German Companies
- Slow Innovation and Lost Opportunities: Insufficient AI talent could hinder the innovation process and missed opportunities for improvement, potentially leading to a competitive disadvantage in global markets.
- Slow Adoption of AI: The lack of AI experts could stall the adoption of AI technologies in German businesses, hampering the implementation of AI-driven solutions designed to enhance efficiency, reduce costs, and improve product quality.
- Partnerships and Investments: German companies may need to form strategic partnerships with international companies or invest in AI talent development programs to compensate for the talent shortage, involving collaborations with universities or training institutions to cultivate local AI skills.
- Immigration Policies: To address the shortage, Germany might ease immigration policies to attract foreign AI talent, as evidenced by the expansion of the Blue Card scheme for skilled workers. However, this could be a temporary solution requiring effective integration strategies for long-term success.
Sources: ntv.de, chl/dpa/AFP
- Artificial Intelligence
- Job Market
- Economy
- With the AI job market contracting since 2022, it's crucial for Germany's employment policy to adapt and address the shortage of AI specialists, aligning with the community policy to foster a competitive economy.
- As technology advances, particularly with the rise of artificial-intelligence, companies in Germany could benefit from implementing robust employment policies that invest in employee competencies, such as AI training, to stay relevant in the global market.
