Struggling to Keep Up? Germany Faces AI Talent Deficit, Putting Companies at Risk
AI specialists in demand by German companies
Calling it a looming crisis, experts warn that Germany's job market is severely lacking in candidates with Artificial Intelligence (AI) skills, putting businesses at a disadvantage in the global competition.
Job ads for AI developers and users have remained stagnant over the past five years, according to a study by Bertelsmann Foundation, which analyzed around 60 million online job postings between 2019 and 2024. Since 2022, these crucial future jobs have failed to grow, potentially leaving German companies behind in the AI race.
Companies are desperately trying to catch up, a fact made clear in a survey by Bitkom, which reported a growing fear among businesses of falling behind in AI adoption. "It's high time for companies to test their business models," Michael Hüther, director of the Institute of the German Economy, stated, suggesting increased investment in employee training and a streamlined AI regulatory environment.
Though AI is increasingly becoming integral to many companies, professionals with the required expertise remain scarce. While the number of job postings for computer scientists, software developers, and other AI specialists increased from 97,000 to 180,000 between 2019 and 2022, this represents a mere 1.5 percent of all job postings. As the market's overall offer stagnates, fewer AI jobs are available today compared to two years ago.
Meanwhile, jobs in the booming field of renewable energy continue to rise, but not at the expense of AI jobs. The Bertelsmann Foundation reports that the percentage of AI jobs has remained roughly the same. City hubs like Munich, Karlsruhe, and Böblingen show the highest concentration of AI jobs, demonstrating regional disparities across Germany.
The Global AI Talent Shortage
The shortage of AI talent is a global issue, with Germany not immune to its effects. With soaring demand for AI experts and the rapid adoption of AI in various industries, the talent gap is widening. Further complicating the picture is the disconnect between the skills acquired by educational institutions and the needs of the job market [4]. Compounded by insufficient funding for AI startups, this shortage limits the development of AI talent and innovation in Germany [5].
Implications for International Competitiveness
Germany's shrinking robot density and increasing skills gap in AI and robotics could impact its ability to maintain its competitive edge in industries reliant on automation and AI technologies [1]. This can have far-reaching consequences for economic growth, innovation, and Germany's standing on the international stage. It's crucial for Germany to address this issue, invest in its AI talent, and stay competitive in the ever-changing global landscape.
Sources:- ntv.de- chl/dpa/AFP- [1] Fierro, N. (2020). Low Robot Density in Germany: What's Behind It?- [2] KPMG (2019). The Pulse of IT: How Germany can continue to strengthen its competitive position- [3] New Venture Capital (2020). Germany needs to close the AI skills gap by investing in the right education- [4] Ballinger, B. (2019). The Gap Between What Students Learn About Artificial Intelligence and What Employers Want- [5] Eskandani, E. (2021). Fostering AI Startups: Lessons from European success stories. World Economic Forum.
- In an effort to maintain international competitiveness, Germany's community policy and employment policy should prioritize the development and attraction of talented individuals in artificial-intelligence and related technology fields, considering the growing skills gap and the stagnating AI job market.
- Addressing the global AI talent shortage, particularly in Germany, will require a focused approach on streamlining the AI regulatory environment, fostering partnerships between educational institutions and industries for relevant skill development, and providing adequate funding for AI startups to nurture innovation and sustain the growth of these crucial future jobs.
