Approximately three-quarters of German tech start-ups are now utilizing Artificial Intelligence (AI), with 76% of these companies regularly integrating AI into their processes. This marks a 50% increase compared to the previous year, according to a survey of 172 German tech start-ups conducted on behalf of the digital association Bitkom. For comparison, only 13% of companies across the entire German economy use AI technologies.
About two-thirds (63%) of start-ups also use generative AI, with 45% using it to support internal operations and 37% incorporating it into their own products and services. “Artificial Intelligence is not just a hype; it is arguably the most important key technology of the future”, said Bitkom President Dr. Ralf Wintergerst. Eight out of ten start-ups share his view, considering AI the most crucial technology for the future. Only 17% see it as overrated. Furthermore, 39% of respondents go as far as to say that start-ups not investing in AI have no future.
“While Germany has been at the forefront of AI research for decades, commercial applications are now predominantly coming from abroad. Start-ups in Germany are among the pioneers and drivers of AI”, continues Wintergerst. He strongly recommends that SMEs and large enterprises connect with AI start-ups and seek cooperation.
Using AI also offers start-ups concrete benefits. Among those that have integrated AI into their products or services, 76% reported easier access to financing. 38% said they could not offer their product or service at all, or only to a very limited extent, without AI.
Many Challenges in Using AI
Many start-ups considering AI face several challenges. According to the survey, 23% of respondents indicated a lack of necessary financial and personnel resources to implement AI effectively. Additionally, concerns about data protection and the legal permissibility of using data were seen as obstacles by 22% of respondents.
Other issues include a lack of time in daily operations, which 19% of start-ups view as a challenge, and a deficit of available data, which prevents 17% from using AI profitably. These factors represent significant barriers that start-ups must overcome to fully leverage the benefits of AI.
As for the risks associated with AI, 10% worry that corporate data might end up in the wrong hands due to AI. Legal hurdles and general uncertainties are obstacles for 9%, while another 9% cite a lack of technical expertise. 8% see no meaningful application area for AI, 7% fear future restrictions on the use of AI, and 5% are currently focusing on other future technologies. Each 4% mention a lack of trust in AI as a reason or state that AI is currently not a topic for them. In contrast, a third of start-ups see no impediments to using Artificial Intelligence.
