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AI Adoption Among German Firms

Author

Listed:
  • Thomas Licht
  • Klaus Wohlrabe

Abstract

This paper examines the adoption of Artificial Intelligence (AI) among German firms, leveraging firm-level data from the ifo Business Survey. We analyze the diffusion of AI across sectors and firm sizes, showing a significant increase in AI usage from 2023 to 2024, particularly in manufacturing and services. The survey data allows us to explore not only sectoral patterns of adoption but also the drivers and barriers that firms face, including firm-specific characteristics and industry dynamics. Additionally, we investigate the role of managerial traits, such as risk tolerance and patience, in shaping AI adoption decisions. Finally, we assess the potential pro-ductivity impacts of AI at the firm level, with a focus on the expected long-term benefits of AI for different sectors of the German economy. Our findings contribute to the growing body of research on AI adoption by providing new evidence from a non-US context, offering valuable insights for both academia and politics.

Suggested Citation

  • Thomas Licht & Klaus Wohlrabe, 2024. "AI Adoption Among German Firms," CESifo Working Paper Series 11459, CESifo.
    • Handle: RePEc:ces:ceswps:_11459
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp11459.pdf
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    More about this item

    Keywords

    artificial intelligence; AI; ifo business survey; productivity;
    All these keywords.

    JEL classification:

    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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