Struggling to Stay Ahead? Germany's Quest for AI Experts
AI talent hunting is intensifying among German companies
The job market in Germany has been struggling to keep pace with Artificial Intelligence (AI) for years, with scarce listings for the much-needed developers and users of this cutting-edge technology. Despite more businesses embracing AI and its potential for boosting productivity, the pool of qualified professionals remains shallower than desired.
An analysis by the Bertelsmann Foundation of over 60 million online job listings between 2019 and 2024 reveals a stagnation in AI job postings since 2022, a worrying sign for companies competing on the global stage. The study attributes this to a lack of investment in employee competencies and a delayed implementation of AI regulations.
Companies are increasingly feeling like they're playing catch-up in the AI game, with many already falling behind. "Companies need to put their business models to the test," said Michael Hüther, director of the Institute of the German Economy. He urges more investment in employee competencies and a streamlined implementation of the AI regulation.
Regionally, while AI is virtually absent from half of all German districts and independent cities, some regions have emerged as hotspots, including Munich, Karlsruhe, and the district of Böblingen near Stuttgart. Moreover, hotspots are found in the southern and southwestern regions, as well as in the Rhine-Ruhr metropolitan area and the Berlin metropolitan region. However, even in these high-concentration areas, AI-related jobs account for only 1.5 percent of all job listings.
The shortage of skilled workers in Germany is not exclusive to the AI sector. The country is grappling with a shortage of talent in various fields such as healthcare, engineering, IT, and construction, further aggravated by an aging population and declining birth rates [2]. Rapid technological advancements in AI and automation increase the demand for specialists, making it difficult to fill positions in this exciting field.
Additionally, the global AI competition is fierce, with countries competing to establish themselves as leaders in AI development and deployment [5]. This competition intensifies the demand for AI talent, making it difficult for Germany to attract and retain AI experts. In response, easing immigration policies to attract international talent [2] and enhancing educational programs and training initiatives in AI could help fill the gap in professionals. Government support for AI projects is also essential to establish a favorable environment for AI development and attract talent [5].
The Community policy should prioritize strategies to attract and retain Artificial Intelligence (AI) experts, considering the intense global competition in AI development and deployment. Employment policy, in conjunction with technological advancements, needs to be updated and implemented efficiently to better equip the workforce with AI skills.
