RESEARCH PAPER | ECONOMIC AND SOCIAL POLICY
Artificial Intelligence as an Opportunity for Growth The overall economic potential of AI for Germany
2 October 2025 Remarkable technological progress has been achieved in the field of artificial intelligence (AI) over the last few years, which is fundamentally changing the world of work and production. AI is regarded in political, scientific and economic circles around the world as a key technology with huge economic potential, also for Germany. In this context, this research paper investigates to what extent AI can bolster overall economic growth in Germany. Economic opportunities: In the medium term, AI can make a tangible contribution to overall economic growth by lifting productivity, creating new business models and triggering momentum in research and development. AI could increase the potential growth of Germany by around 0.3 percentage points per year until the end of the decade. This does not amount to a surge in growth, by any means, but is nonetheless a relevant boost particularly given the low rate of growth currently anticipated. Current position: Germany is currently in the middle of the pack among G7 countries regarding expected effects of AI on productivity. The structure of Germany’s economy with a strong industrial sector and limited service intensity curbs the direct impact of AI. Further impeding a swift and widespread introduction of AI throughout the German economy are structural challenges including a corporate landscape dominated by mid-sized enterprises, deficits in digital infrastructure, a shortage of skilled staff and limited financing options, particularly for start-ups. Strategic recommendations: Germany should make targeted use of its strengths in industry, its listed corporations and midsized family businesses, to advance the use of AI, both in development and in practical applications. To make this happen, the political framework must enable targeted investment in sovereign infrastructure, promote the development of AI skills in education and in enterprises, and create the legal and economic prerequisites to facilitate the innovation and application of AI. Enterprises are called on not just to use AI in isolated applications but apply it strategically for the restructuring of business models and value added. Germany will only be able to secure its sovereignty and adopt a leading role in industrial AI if policymakers and industry act in unison.