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German SMEs lag in AI adoption despite industry push for smarter manufacturing

From workshops to research hubs, Germany's race to equip SMEs with AI tools could redefine manufacturing. Will it solve labor shortages too?

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German SMEs lag in AI adoption despite industry push for smarter manufacturing

Germany's small and medium-sized enterprises (SMEs) are struggling to adopt artificial intelligence in manufacturing. Many firms lack the knowledge to implement AI or understand its benefits. To address this gap, the Scientific Society for Production Engineering (WGP) has announced new measures to boost AI integration across the sector.

The move follows concerns that AI could improve efficiency and ease labour shortages—but only if businesses receive proper support.

The WGP's push for greater AI adoption began with its ProKI project, which aimed to help SMEs introduce AI into production processes. At its autumn conference, the organisation resolved to deepen AI integration in manufacturing through expanded research and updated guidelines.

From early 2025, the WGP will establish an internal committee dedicated to supporting AI adoption. It will also scale up online workshops and incorporate them into the WGP Production Academy, ensuring high-quality knowledge transfer. The academy will maintain strict standards to guarantee SMEs receive reliable, practical training.

Beyond training, the WGP plans to continue its Smart Factory Conference series as a regular platform for AI discussions in Germany. The organisation will also refresh its position paper on AI in production, reflecting the latest advancements and best practices.

The effort extends beyond the WGP. Audi is developing AI-driven solutions like ProcessGuardAI and collaborating on the IPAI initiative in Heilbronn. Zoller is embedding AI into tool measurement, while Fraunhofer IAIS publishes research on AI and machine learning applications. The Lehrstuhl fĂźr Fertigungstechnik und Betriebsorganisation at RPTU Kaiserslautern is exploring AI for sustainable tool production through the FairTools project. NVIDIA provides accelerated computing for large-scale industrial AI, and Materna offers end-to-end services to help manufacturers adopt the technology.

The WGP's expanded initiatives aim to make AI more accessible to German SMEs. With workshops, research, and industry partnerships, the organisation seeks to close the knowledge gap and drive adoption. If successful, the measures could help businesses improve efficiency and address ongoing labour shortages in manufacturing.

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