German firms ramp up AI use while grappling with governance and skill gaps

A growing share of German companies is expanding AI use. A TÜV study finds 27 % of firms have trained staff in AI – more than double the level two years earlier – yet almost half say there is no current need for AI training and only a third have clear governance over AI spending. At universities, AI is already widespread: a survey at the Friedrich‑Alexander‑University shows 72 % of students and 59 % of lecturers regularly use generative tools such as ChatGPT, but 84 % of staff voice ethical concerns and many cite a lack of clear institutional guidance. In neighbouring Austria, the latest Statistik Austria figures place the country among the EU leaders in corporate AI use, with 30 % of firms employing AI, though overall EU adoption remains low. PwC reports that entry‑level positions are being cut by 35 % as AI favours roles requiring senior‑level skills; the firm argues AI creates jobs for those with advanced competencies. A German start‑up, alangu, demonstrates that inclusive development – with a majority‑deaf team – can improve AI products for sign‑language translation, boosting user acceptance to over 90 %. Analysts warn that AI agents will shift software from “record” to “action”, but major vendors will stay crucial as enterprises transition. The European Commission’s draft Cloud and AI Development Act aims to triple the continent’s AI compute capacity within five to seven years, underlining Europe’s reliance on ASML’s lithography tools. A Flexera report shows only 31 % of IT asset‑management teams have reliable data on deployed AI software, while unnecessary AI spend rises and audit pressure mounts.