Study reveals AI ability to pay billions in value added to German industry

(MENAFN) A recent study conducted by the IW Consult Institute for Economic Consulting and Research has unveiled the substantial potential of artificial intelligence (AI) to significantly enhance the German industrial sector, potentially unlocking billions of euros in additional value. Commissioned by the prominent American tech company Google, the study sheds light on the transformative impact of generative AI on manufacturing processes and economic productivity in Germany.

Generative AI, a branch of artificial intelligence, holds the capability to create and generate novel content autonomously. By leveraging sophisticated algorithms and language models, such as those pioneered by platforms like OpenAI's ChatGPT and Google's Gemini chatbot, generative AI can produce a diverse range of content types, including texts, images, videos, music, and software codes. Notably, generative AI systems do not require specialized programming for task execution, but rather can be instructed using natural language, representing a significant leap in human-machine interaction.

According to the findings of the study conducted by the German Economic Institute's (IW) branch in Cologne and published in Berlin, the adoption of generative AI has the potential to drive a substantial increase in the total value added within Germany's manufacturing sector. Specifically, the study projects a potential uplift of 7.8%, equivalent to an impressive 56 billion euros in increased value added.

The implications of AI adoption extend beyond economic metrics, as the study highlights significant changes anticipated in the workforce landscape. Academics and office workers are particularly identified as demographic groups expected to navigate significant adjustments in response to the integration of AI technologies into their work environments. With an estimated impact on the roles of 600,000 manufacturing sector employees, and the potential to support the work of an additional 4.1 million individuals across various sectors, generative AI emerges as a transformative force reshaping work processes and driving innovation across industries.

As Germany embarks on the journey towards embracing AI-driven advancements, stakeholders are urged to proactively adapt to the evolving landscape, leveraging the potential of generative AI to enhance productivity, foster creativity, and drive sustained economic growth. With careful navigation and strategic implementation, the integration of AI technologies holds promise for unlocking unprecedented opportunities and driving sustainable competitiveness in the digital age.

MENAFN17042024000045015682ID1108104868