Sharjah24 - AFP: At the Hannover Messe industrial fair in Germany, the role of artificial intelligence (AI) in transforming industries was a key topic. The event showcased over 4,000 companies and offered visitors the chance to explore AI's potential applications in production, robotics, and energy. One prominent display featured a Rolls-Royce aircraft engine whose production process was optimized with AI technology developed by Microsoft and Siemens, attracting significant attention.
SMEs and AI engagement
However, small and medium-sized enterprises (SMEs), the backbone of Germany's economy, appeared less engaged with AI. Some, like Herz Aetztechnik, a company specializing in laser-made vehicle and electronics parts, expressed skepticism, questioning AI's relevance for their highly customized products.
Success stories in family-owned businesses
In contrast, family-owned businesses like Koerner Electric, which has used AI for three years, demonstrated how the technology has improved manufacturing processes and enabled faster programming generation.
Challenges in digital transformation
While Germany's industrial sector has traditionally been a leader in high technology, many companies are struggling to keep up with the digital transformation led by competitors in the U.S. and China. There is a growing concern that without adopting AI, Germany risks falling behind in global competition.
Varied perspectives on AI reliability
AI systems such as "AI agents," which autonomously perform tasks like writing code and assisting with conversations, were also featured at the fair. However, some manufacturers, particularly in the pharmaceutical industry, expressed reservations about AI's reliability, given the strict regulations they must adhere to.
Hesitancy in product development
According to a Microsoft survey, nearly half of German industrial firms use AI in some capacity, but many are hesitant to use it in product development. A study by the VDMA machinists' association revealed that only 7% of machine builders plan to integrate generative AI for product design.
Barriers to AI adoption
Despite the potential for AI to boost efficiency and profits, concerns about data quality, a shortage of AI specialists, and technical challenges remain significant barriers.
Collaborative efforts for practical applications
Germany’s Fraunhofer research institute has been working to demonstrate AI’s practical applications to manufacturers across the country, highlighting the importance of networking smaller companies and pooling data to create shared solutions.
Addressing job displacement concerns
However, a major hurdle remains the fear that AI could displace jobs, and labor unions must be convinced to see AI as a tool to enhance productivity rather than a threat.
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