Artificial intelligence is poised to usher in major transformations in contemporary living, yet at an industry trade show in Germany, numerous businesses are contemplating their role in this technological upheaval.
One of our representatives mentioned using ChatGPT somewhat," said a business official from a metal processing company located in Southern Germany during this week’s Hannover Messe event.
The exhibition featuring 4,000 companies assured attendees they could "immerse themselves in the future" and investigate AI's "real-world uses in sectors like manufacturing, robotics, and power," all tailored to individual preferences.
A striking exhibit — a massive Rolls-Royce airplane engine developed with optimization from AI technology provided by Microsoft and the German firm Siemens — attracted numerous intrigued spectators.
However, at the fringes, the smaller and medium-sized businesses (SMEs), which form the core of Germany’s economic structure—the renowned Mittelstand—frequently had little input regarding this matter.
Andrea Raaf from Herz Aetztechnik, a company that utilizes lasers for manufacturing vehicle and electronic components, stated that AI is not capable enough for this task.
"The components we produce are quite unique, which is why we don't think AI would be particularly useful," she stated.
Other entities have shown greater involvement, such as the family-run Koerner Electric, which mentioned they have been utilizing artificial intelligence for the last three years.
In front of tailor-made circuit boards, their technical director Dennis Koerner stated that AI had assisted in both the production process and the analysis of optical and electrical measurements.
Koerner stated that they had developed a compact AI system capable of accelerating program generation significantly.
Speedier and more reliable outcomes were needed without requiring multiple staff members for the task.
- Lagging behind -
Previously synonymous with advanced technology, Germany’s industrial sector recognizes that it is falling short against American and Chinese rivals in the digital innovations set to shape the upcoming centuries.
A lot of German companies still struggle with understanding how to utilize the swiftly advancing technology in the top-tier engineering fields they excel in.
Avoiding the introduction of AI would be unwise," stated Agnes Heftberger, managing director at Microsoft Germany. "If we do, Germany risks falling behind in global competitiveness.
Additionally showcased at the event were what were called "AI agents," systems capable of independently carrying out duties ranging from coding to facilitating conversations.
Microsoft provides solutions to convert machinery information into easy-to-understand language and predict maintenance requirements beforehand.
However, Loke Olsen, an automation engineer at Confirm A/S—a Danish subcontractor for the pharmaceutical sector—expressed some doubt regarding AI’s capacity to avoid mistakes and self-correct effectively.
"We must ensure that AI operates at 100 percent efficiency as we need to adhere to stringent health regulations," he stated.
For certain individuals, affordability is a concern. Koerner mentioned that it appears as though "we can scarcely manage the expense" of several AI products displayed at the exhibition.
- 'Game changer' -
According to a Microsoft survey, nearly half of German industrial companies utilize AI for certain business operations; however, these same businesses generally show less enthusiasm when it comes to employing AI in product development.
According to a study conducted by the machinists' association VDMA, only seven percent of machinery manufacturers intend to implement generative AI for assisting in product design.
"Although there have been some early efforts, the level of investment remains insufficient," stated Guido Reimann, the deputy managing director for software and digitization at VDMA.
The research discovered that GenAI has the potential to significantly increase the industry’s yearly profits by several billion euros through enhancing efficiency and increasing sales.
However, despite 52 percent of managers viewing AI as a possible "game changer," the report stated, "its application has predominantly been confined to experimental or proof-of-concept initiatives."
The primary issues highlighted included poor data quality, scarcity of AI experts, and various technical hurdles.
Since 2023, Germany’s Fraunhofer research organization has been traveling across Germany, demonstrating practical uses of artificial intelligence in various sectors ranging from woodworking to medical care for manufacturing companies.
"Networking smaller businesses together can be quite beneficial since AI operates extensively on data," explained institute spokesperson Juliane Segedi.
The greater the amount of data available, the more effective an AI system can be. If faced with a comparable issue requiring resolution, combining the data allows us to develop solutions beneficial for all involved parties.
Various obstacles still persist. Numerous individuals worry that artificial intelligence might eventually take over their employment.
A crucial step, according to Segedi, will involve persuading labor unions not to view AI as a menace but rather as an ally that can support their objectives.
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