AI Brain Drain: The Struggle of German Firms in Finding AI Experts
AI Talent Sought Intensely by German Companies
In an alarming trend, job listings for Artificial Intelligence (AI) in Germany have been troublingly stagnant for years. Two cities and one district hold a significant concentration of these AI-related jobs, yet experts are ringing the alarm bells.
The Bertelsmann Foundation, after scrutinizing over 60 million online job advertisements from 2019 to 2024, uncovered that the number of AI job offers has been on a consistent low since 2022. This potentially volatile situation may cause German companies to be at a disadvantage in the international AI race.
Even companies themselves are feeling left behind this dynamic field, with many already feeling the pinch. Michael Hüther, director of the Institute of the German Economy, urges a test of business models and more investment in employee competencies, suggesting a bureaucracy-free implementation of the AI regulation.
As AI becomes more widespread, opportunities for productivity gains are immense. However, personnel possessing the required expertise remains scant, according to the study. Although job ads for computer scientists, software developers, or other AI-specialists have almost doubled from 97,000 to 180,000 since 2019, they account for only 1.5 percent of all job ads.
Since 2022, the absolute number of AI jobs offered has decreased to approximately 152,000 ads. Comparatively, the proportion of jobs in the renewable energy sector, even during the recession in 2023 and 2024, has surged to an impressive 3.8 percent.
For companies seeking AI-literate employees, their job advertisements primarily target well-educated AI developers. Meanwhile, AI-savvy users, employed in advertising, marketing, or sales, are less frequently recruited.
Regionally, differences are apparent: While AI hardly finds a foothold in half of Germany's districts and cities, Munich, Karlsruhe, and Böblingen near Stuttgart stand out as leaders in AI-related job offers. Additionally, hubs can be found in various southern, southwestern regions, Rhine and Ruhr metropolitan areas, and Berlin metropolitan area.
Clearly, the demand for AI experts in Germany is increasing due to the surging need for technological innovation and digital transformation in industries. Yet, the lack of skilled professionals in these fields is causing a skills gap. As this situation continues, Germany may struggle to maintain its global competitiveness, particularly when compared to countries like China, rapidly adopting AI technologies.
The shortage impacts Germany's competitiveness in numerous ways: technological advancements, innovation and R&D, economic growth, and robotics and automation. To address this bereft state, Germany is pursuing strategies like easing immigration policies, investing in education and training programs, and hosting collaborative events to foster AI innovation.
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[2] "Artificial intelligence could replace up to 800 million jobs worldwide, study finds", Financial Times, (2019), [Online]. Available: https://www.ft.com/content/835f4f8e-1626-11e9-a224-22cc2b6ea5b8
[3] "Why is Germany struggling to recruit skilled workers?", World Economic Forum, (2020), [Online]. Available: https://www.weforum.org/agenda/2020/12/germany-skilled-workforce-employment
[4] "The European Humanoid Robots Summit 2021 - Connecting the humanoid robotics community", Federation of German Scientists, (2021), [Online]. Available: https://www.wissenschaft.de/de/veranstaltungen/2021/evrohs-2021-european-humanoid-robots-summit-2021-76a0b1e6932f999bba967f9755faf6fe.html
- To combat the increasing demand for AI experts and maintain Germany's global competitiveness, it would be beneficial for the community and employment policies to focus on easing immigration for skilled professionals, investing in education and training programs, and facilitating collaborative events that foster AI innovation.
- As both technology, particularly artificial-intelligence, and AI-related job ads continue to grow, it is crucial for companies to invest in the development and training of current employees, ensuring a readily available pool of AI-literate professionals, and adopting a less bureaucratic approach to AI regulation for business model testing and implementation.
