Industry

One in Five German AI-Using Firms See Some Graduates Replaceable by AI-Augmented Lower-Skilled Workers

A survey by the Munich-based ifo Institute finds that nearly 20% of German companies using artificial intelligence consider it feasible to substitute some university-educated employees with lower-skilled workers supported by AI tools.

One in Five German AI-Using Firms See Some Graduates Replaceable by AI-Augmented Lower-Skilled Workers

A survey by the Munich-based ifo Institute indicates that among German companies already using artificial intelligence (AI) in their business processes, close to 20 percent consider it feasible to substitute some employees with university-level or specialist qualifications with lower-skilled workers supported by AI tools.

Key findings

  • Almost 20 percent of AI-using firms judge it easy or very easy to replace some university-educated or specialist-qualified staff with AI-assisted workers who lack formal qualifications.
  • About 15 percent believe that, in a similar fashion, some experienced workers could be replaced by less experienced but AI-supported employees.
  • At present, 54.5 percent of German companies report using artificial intelligence in their business processes.

Differences by sector

Views vary across sectors: the trend is strongest in trade, where 28.6 percent of firms think university-level qualifications can be easily substituted by AI-using employees. In the services sector the share is 19.7 percent, in manufacturing 14.6 percent, and in construction 9.3 percent.

Replacing professional experience is seen as harder: 22.9 percent of trade companies consider experienced employees readily replaceable with AI-supported, less experienced staff; the figures are 14.5 percent in services, 12.6 percent in manufacturing, and 7.7 percent in construction.

Widespread skepticism

A majority of firms remain skeptical. Among companies using AI, 55.4 percent say it is difficult or not at all possible to replace degree-holding employees with less qualified but AI-using workers. Skepticism is even stronger regarding experienced staff: 62.7 percent view such replacement as difficult or impossible.

Context and expert view

Anna Ruffert, a researcher at ifo, says artificial intelligence is reshaping the world of work and can partially substitute formal qualifications and professional experience in certain areas. Reuters has also reported that in recent months several large companies worldwide announced layoffs tied to increased AI adoption.

(Report based on MTI)