Artificial intelligence is becoming increasingly important for SMEs

The use of artificial intelligence (AI) in German SMEs is increasing significantly. According to a special analysis of the KfW SME Panel, an annual representative survey, around 20% of small and medium-sized companies now use AI applications. This corresponds to almost 780,000 companies - a significant increase compared to the years 2016 to 2018, when only four percent used AI.

Larger companies and R&D drivers are leading the way

Medium-sized companies with more than 50 employees are relying on AI in particular, with the user rate rising from six to 36 percent. Even among small companies with fewer than five employees, 19 percent now use AI. Companies that conduct their own research and development (R&D) are particularly active - 53% use AI applications here, almost three times as many as those without R&D.

Digitalization and internationalization as drivers

The likelihood of using AI increases with a company's digitalization strategy. Internationally active companies use AI twice as often as purely regional companies.

Companies that operate internationally are often under greater competitive pressure. Early adoption of new technologies is particularly important for them

Dr. Dirk Schumacher, Chief Economist at KfW,

Knowledge-based services lead the way in AI use with 28%, particularly in advertising, market research, information services and management consultancy. The rate in manufacturing with intensive R&D is also 23%. AI is used least frequently in the construction industry - only eight percent of companies here rely on intelligent systems. In this context, Dr. Schumacher emphasizes that the increasing use of AI in SMEs not only reflects technological progress, but is also a strategic response to the shortage of skilled workers and demographic change.

The entire study can be found at Fokus Volkswirtschaft