The China Mail - German industry grapples with AI at trade fair

USD -
AED 3.672497
AFN 65.502706
ALL 80.979656
AMD 377.215764
ANG 1.79008
AOA 916.99964
ARS 1404.011801
AUD 1.406351
AWG 1.8025
AZN 1.702932
BAM 1.643792
BBD 2.01512
BDT 122.389289
BGN 1.67937
BHD 0.376967
BIF 2965.35987
BMD 1
BND 1.266678
BOB 6.913941
BRL 5.178902
BSD 1.0005
BTN 90.584735
BWP 13.12568
BYN 2.874337
BYR 19600
BZD 2.012178
CAD 1.354285
CDF 2209.999697
CHF 0.766905
CLF 0.021642
CLP 854.569689
CNY 6.91085
CNH 6.91007
COP 3665.79
CRC 495.12315
CUC 1
CUP 26.5
CVE 92.677576
CZK 20.36795
DJF 178.163649
DKK 6.274825
DOP 62.707755
DZD 129.429029
EGP 46.8715
ERN 15
ETB 155.312845
EUR 0.83997
FJD 2.18585
FKP 0.731875
GBP 0.730589
GEL 2.690494
GGP 0.731875
GHS 11.010531
GIP 0.731875
GMD 73.499639
GNF 8782.951828
GTQ 7.672912
GYD 209.326172
HKD 7.81681
HNL 26.438786
HRK 6.327399
HTG 131.239993
HUF 318.446503
IDR 16784
ILS 3.078798
IMP 0.731875
INR 90.70785
IQD 1310.634936
IRR 42125.000158
ISK 121.970211
JEP 0.731875
JMD 156.538256
JOD 0.709001
JPY 153.579499
KES 129.000133
KGS 87.450037
KHR 4032.593576
KMF 414.399915
KPW 899.999067
KRW 1451.42979
KWD 0.30681
KYD 0.833761
KZT 492.246531
LAK 21486.714209
LBP 89522.281894
LKR 309.580141
LRD 186.599091
LSL 15.938326
LTL 2.95274
LVL 0.60489
LYD 6.307756
MAD 9.121259
MDL 16.933027
MGA 4429.297238
MKD 51.751639
MMK 2099.913606
MNT 3568.190929
MOP 8.056446
MRU 39.329271
MUR 45.679749
MVR 15.449836
MWK 1734.822093
MXN 17.214865
MYR 3.914984
MZN 63.898797
NAD 15.938527
NGN 1353.389896
NIO 36.82116
NOK 9.46565
NPR 144.931312
NZD 1.64996
OMR 0.384502
PAB 1.000504
PEN 3.359612
PGK 4.2923
PHP 58.249062
PKR 279.886956
PLN 3.54075
PYG 6585.112687
QAR 3.647007
RON 4.276306
RSD 98.555023
RUB 77.27212
RWF 1460.743567
SAR 3.750472
SBD 8.058149
SCR 13.736914
SDG 601.474628
SEK 8.864502
SGD 1.26252
SHP 0.750259
SLE 24.350262
SLL 20969.499267
SOS 571.774366
SRD 37.889832
STD 20697.981008
STN 20.59161
SVC 8.754376
SYP 11059.574895
SZL 15.922777
THB 31.02969
TJS 9.389882
TMT 3.51
TND 2.882406
TOP 2.40776
TRY 43.643401
TTD 6.786071
TWD 31.410299
TZS 2590.153978
UAH 43.08933
UGX 3556.990006
UYU 38.36876
UZS 12326.389618
VES 384.79041
VND 26000
VUV 119.366255
WST 2.707053
XAF 551.314711
XAG 0.011671
XAU 0.000196
XCD 2.70255
XCG 1.803175
XDR 0.685659
XOF 551.314711
XPF 100.234491
YER 238.325027
ZAR 15.86858
ZMK 9001.197781
ZMW 19.034211
ZWL 321.999592
  • SCS

    0.0200

    16.14

    +0.12%

  • RBGPF

    0.1000

    82.5

    +0.12%

  • RYCEF

    0.5300

    17.41

    +3.04%

  • CMSC

    0.1070

    23.692

    +0.45%

  • NGG

    0.3700

    88.76

    +0.42%

  • GSK

    -0.1900

    58.82

    -0.32%

  • CMSD

    0.1100

    24.08

    +0.46%

  • BTI

    -0.9600

    60.19

    -1.59%

  • RIO

    0.3900

    97.24

    +0.4%

  • VOD

    -0.2300

    15.25

    -1.51%

  • BCE

    0.2100

    25.83

    +0.81%

  • RELX

    -0.1900

    29.29

    -0.65%

  • JRI

    -0.0300

    12.78

    -0.23%

  • BCC

    0.7100

    89.73

    +0.79%

  • AZN

    5.3900

    193.4

    +2.79%

  • BP

    -2.2500

    36.97

    -6.09%

German industry grapples with AI at trade fair
German industry grapples with AI at trade fair / Photo: © AFP/File

German industry grapples with AI at trade fair

Artificial intelligence is set to bring sweeping change to modern life, but at an industrial fair in Germany many companies wonder how they fit into the tech revolution.

Text size:

"We use ChatGPT a bit," shrugged one business representative, from a metals processor based in southern Germany, at this week's Hannover Messe.

The expo grouping 4,000 firms promised visitors ways to "experience the future" and explore AI's "practical applications in areas such as production, robotics and energy, all at their own pace".

One eye-catching display -- a gigantic Rolls-Royce aircraft engine whose production was optimised by AI from Microsoft and German company Siemens -- drew many curious onlookers.

But on the sidelines, the small and medium enterprises (SMEs) that are the backbone of Germany's economy -- the so-called Mittelstand -- often had less to say on the subject.

Andrea Raaf of Herz Aetztechnik, which uses lasers to make vehicle and electronics parts, said AI was not up to the job.

"The parts we manufacture are very individual, so we can't really see the point of AI," she told AFP.

Others have been more engaged, including family-owned Koerner Electric, which said it has been using AI for the past three years.

Standing in front of custom-built circuit boards, its technical director Dennis Koerner said AI had helped with the manufacturing process and to analyse optical and electrical measurements.

"We have written a small AI with which we can generate programming much faster," said Koerner.

"It was necessary to get faster and more stable results without needing several employees for the job."

- Lagging behind -

Once a byword for high technology, German industry knows that it is lagging behind US and Chinese competition when it comes to the digital technologies that will dominate the next century.

Many German firms remain unsure how to use the rapidly evolving technology in the kind of high-end engineering they specialise in.

"It's important not to shy away from introducing AI," said Agnes Heftberger, managing director of Microsoft Germany. "Otherwise Germany will find itself lagging behind in the face of international competition."

Also featured at the fair were so-called "AI agents", systems which autonomously perform tasks from writing code to assisting with conversations.

Microsoft offers systems to put machine data into simple language and identify maintenance needs in advance.

But Loke Olsen, an automation engineer at Confirm A/S, a Danish subcontractor to the pharmaceutical industry, was somewhat sceptical about AI's potential errors and ability to correct itself.

"We have to be sure that AI works 100 percent because we have to comply with very strict health regulations," he told AFP.

For some, cost is an issue. Koerner said that it seems like "we can hardly afford" some of the AI products being showcased at the fair.

- 'Game changer' -

Almost half of German industrial firms use AI for some business functions, a Microsoft survey found, but most are far more reluctant to use it to develop their products.

Only seven percent of machine builders plan to adopt generative AI to help with product design, said a study by the machinists' association VDMA.

"There are some initial attempts, but investment is still too low," said Guido Reimann, VDMA's deputy managing director of software and digitalisation.

The study found that GenAI, by optimising efficiency and boosting sales, could raise the sector's annual profits by many billions of euros.

But although 52 percent of managers saw AI as a potential "game changer", it said, "its use has so far often been limited to experimental or proof-of-concept projects".

The top concerns listed were a lack of data quality, shortages of AI specialists and technical challenges.

Germany's Fraunhofer research institute has been touring Germany since 2023, showing manufacturers concrete AI applications from carpentry to healthcare.

"It often helps to network smaller companies with each other because AI always works with data," said institute spokeswoman Juliane Segedi.

"The more data you have, the better an AI can become. And if you have a similar problem that needs to be solved, you can pool the data to come up with a solution that is good for everyone."

Other challenges remain. Many people fear AI will one day steal their job.

An important step, Segedi said, will be convincing labour unions to not "see AI as a threat but as something that can contribute to their ideas".

I.Ko--ThChM