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

USD -
AED 3.67305
AFN 66.496721
ALL 83.872087
AMD 382.480316
ANG 1.789982
AOA 917.000151
ARS 1450.743722
AUD 1.543543
AWG 1.805
AZN 1.721313
BAM 1.69722
BBD 2.01352
BDT 122.007836
BGN 1.69435
BHD 0.376961
BIF 2952.5
BMD 1
BND 1.304378
BOB 6.907594
BRL 5.350197
BSD 0.999679
BTN 88.558647
BWP 13.450775
BYN 3.407125
BYR 19600
BZD 2.010578
CAD 1.41132
CDF 2154.999794
CHF 0.806245
CLF 0.024029
CLP 942.659758
CNY 7.11935
CNH 7.122085
COP 3784.25
CRC 502.442792
CUC 1
CUP 26.5
CVE 95.849785
CZK 21.08085
DJF 177.720149
DKK 6.46669
DOP 64.301661
DZD 130.471267
EGP 47.303968
ERN 15
ETB 153.49263
EUR 0.86605
FJD 2.28525
FKP 0.766404
GBP 0.76133
GEL 2.715005
GGP 0.766404
GHS 10.92632
GIP 0.766404
GMD 73.510149
GNF 8677.881382
GTQ 7.6608
GYD 209.15339
HKD 7.774805
HNL 26.286056
HRK 6.524997
HTG 130.827172
HUF 334.350298
IDR 16686.5
ILS 3.261445
IMP 0.766404
INR 88.675601
IQD 1309.660176
IRR 42112.499919
ISK 126.620161
JEP 0.766404
JMD 160.35857
JOD 0.709006
JPY 153.072498
KES 129.14997
KGS 87.450262
KHR 4012.669762
KMF 420.999708
KPW 900.033283
KRW 1448.119782
KWD 0.306898
KYD 0.833167
KZT 526.13127
LAK 21717.265947
LBP 89523.367365
LKR 304.861328
LRD 182.946302
LSL 17.373217
LTL 2.95274
LVL 0.60489
LYD 5.466197
MAD 9.311066
MDL 17.114592
MGA 4508.159378
MKD 53.394772
MMK 2099.044592
MNT 3585.031206
MOP 8.005051
MRU 39.997917
MUR 45.999381
MVR 15.405019
MWK 1733.486063
MXN 18.57444
MYR 4.18297
MZN 63.960351
NAD 17.373217
NGN 1438.169534
NIO 36.78522
NOK 10.201703
NPR 141.693568
NZD 1.774497
OMR 0.384501
PAB 0.999779
PEN 3.375927
PGK 4.279045
PHP 58.997504
PKR 282.679805
PLN 3.68034
PYG 7081.988268
QAR 3.643566
RON 4.403984
RSD 101.501994
RUB 81.251088
RWF 1452.596867
SAR 3.750504
SBD 8.223823
SCR 15.060272
SDG 600.496692
SEK 9.5646
SGD 1.304202
SHP 0.750259
SLE 23.197134
SLL 20969.499529
SOS 571.349231
SRD 38.503497
STD 20697.981008
STN 21.260533
SVC 8.747304
SYP 11056.895466
SZL 17.359159
THB 32.399408
TJS 9.227278
TMT 3.5
TND 2.959939
TOP 2.342104
TRY 42.099355
TTD 6.773954
TWD 30.984983
TZS 2459.806975
UAH 42.066455
UGX 3491.096532
UYU 39.813947
UZS 11966.746503
VES 227.27225
VND 26315
VUV 122.169446
WST 2.82328
XAF 569.234174
XAG 0.020825
XAU 0.000251
XCD 2.70255
XCG 1.801686
XDR 0.70875
XOF 569.231704
XPF 103.489719
YER 238.483762
ZAR 17.37062
ZMK 9001.20436
ZMW 22.61803
ZWL 321.999592
  • RBGPF

    0.0000

    76

    0%

  • CMSC

    -0.0500

    23.78

    -0.21%

  • GSK

    0.4100

    47.1

    +0.87%

  • NGG

    0.9200

    76.29

    +1.21%

  • BCC

    -0.6500

    70.73

    -0.92%

  • SCS

    -0.1700

    15.76

    -1.08%

  • RIO

    0.2100

    69.27

    +0.3%

  • RELX

    -1.1900

    43.39

    -2.74%

  • BTI

    0.3300

    54.21

    +0.61%

  • AZN

    2.6200

    83.77

    +3.13%

  • JRI

    -0.0200

    13.75

    -0.15%

  • RYCEF

    0.0600

    15

    +0.4%

  • CMSD

    0.0000

    24.01

    0%

  • BP

    0.1400

    35.82

    +0.39%

  • BCE

    0.7800

    23.17

    +3.37%

  • VOD

    0.0700

    11.34

    +0.62%

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