German Industry Grapples with AI Trade Challenges Amid Global Shifts

Germany's industrial sector is navigating a complex landscape shaped by the rapid advancement of artificial intelligence (AI) and shifting global trade dynamics. Companies like Henkel and Delivery Hero are integrating AI to enhance productivity and streamline operations. Henkel, for instance, employs AI to automate processes in its adhesives business, aiming to boost efficiency and detect product flaws. Similarly, Delivery Hero utilizes generative AI to create food images and improve customer interactions. ​

However, the broader German economy faces challenges. The Federation of German Industries (BDI) forecasts a 1.5% decline in industrial production for 2024, mirroring the previous year's downturn. Exports are also expected to stagnate, reflecting the pressures from global competition and domestic economic constraints. ​

In response to labor shortages exacerbated by an aging workforce, German businesses are increasingly turning to automation. Small and medium-sized enterprises are adopting robotic solutions to maintain productivity as experienced workers retire. This shift underscores the necessity for industries to adapt to demographic changes through technological innovation.

These developments highlight the dual-edged nature of AI in German industry: offering avenues for growth and efficiency while presenting challenges in workforce adaptation and global competitiveness.​

Author: Clement KASSER

Original Source: https://www.yahoo.com/

Read Full Article: Yahoo News