Is the AI Edge Slipping Away? German Firms Struggle to Find AI Talent
German companies are extensively seeking AI specialists
Update: Job vacancies related to Artificial Intelligence (AI) in Germany have shown a stagnant trend for years. There are select areas with a high concentration of AI-related job opportunities, but the expert community is issuing warnings.
According to the Bertelsmann Foundation's analysis of around 60 million job listings from 2019 to 2024, the number of AI developer and user job openings in Germany has plateaued at a worryingly low level since 2022. This could put German companies at risk in the competitive global market.
Companies themselves express feelings of falling behind in the AI arena, as numerous businesses feel left in the dust, the foundation reported, drawing from a Bitkom survey. "Business models must be questioned," explained Michael Hüther, Director of the Institute of the German Economy. He advocates increased employee competence investment and an unburdened implementation of the AI regulation.
Although more businesses are leveraging AI for its productivity benefits, the pool of qualified candidates with the appropriate skills remains limited. According to the report, job postings for computer scientists, software developers, and other AI-savvy specialists spiked from 97,000 to 180,000 from 2019 to 2022 but accounted for just 1.5% of all job listings.
Shrinking Pool of Opportunities
Since 2022, the number of job postings in this sector has decreased to roughly 152,000 ads. Overall supply has dwindled due to economic challenges, but the proportion of AI jobs has remained stable. Notably, while the recession of 2023 and 2024 has seen the proportion of renewable energy jobs climb to 3.8% of all job postings, according to Bertelsmann, AI barely registers in the majority of German districts and independent cities.
On the hunt for AI-skilled employees, companies primarily focus on highly trained specialists for AI development. Less frequently sought are AI-savvy users, such as those in advertising, marketing, or sales.
Regional Variations
Aside from gaps across different districts, there are AI hotspots, such as Munich, Karlsruhe, and the Böblingen district near Stuttgart. Additional pockets can be found in South and Southwest Germany, the Rhine and Ruhr Metropolitan area, and the Berlin Metropolitan area.
Source: ntv.de, chl/dpa/AFP
- AI in the Workforce
- Germany's Job Market
Insights: The skills gap in Germany, encompassing industries such as IT and engineering, may impact the availability of AI experts [3]. A few possible consequences for German companies include:
- Global Competitive Disadvantage: The scarcity of AI talents could hinder the ability of German companies to innovate and compete effectively at the international level, potentially resulting in loss of market shares and reduced competitiveness versus countries abundant in AI talent [1][2].
- Dependence on Automation: While Germans are open to workplace robotics, particularly for hazardous or repetitive tasks, an AI-talent shortfall might restrict the integration and development of advanced AI systems, thus hindering the full potential of automation [1][2].
- International Talent Attraction: To mitigate these consequences, Germany is liberalizing immigration policies to entice international professionals, including those with AI expertise. This could help bridge the gap in skilled workers and support the competitiveness of German companies [3].
- Education and Training Investment: Investments in domestic education and training programs centered on AI could gradually nurture the talent pool, decreasing dependency on international recruitment [3].
- Collaboration and Cooperation: Encouraging collaboration with international partners could help German companies gain access to AI expertise and technologies, potentially bridging the talent availability gap [4].
Note: The European Humanoid Robots Summit in Germany is an initiative intended to address workforce shortages and technological advancements, providing indirect support for AI development by exploring humanoid robotics as a potential solution [4]. However, it is more focused on robotics rather than AI specifically.
Overall, while the supply of AI experts may not be technically stagnant, the broader skilled worker shortage in Germany raises challenges for companies aiming to invest in AI and compete on a global scale. Developing strategies around education, immigration, and collaboration will be crucial in addressing these shortages and ensuring German companies' long-term success.
- To maintain competitiveness in the global market, it's essential for German firms to incorporate community policies encouraging technological advancements, such as artificial-intelligence, into their employment policies, emphasizing the development of employee skills in these areas.
- In the quest to bridge the skills gap and increase the pool of AI-savvy professionals, German companies should consider expanding their recruiting efforts beyond domestic borders, exploring partnerships with international firms, and investing in educational programs focused on AI and artificial-intelligence.
