German Businesses Face ROI Challenges While Preparing Workforce for AI Integration
German companies increase AI investments but face ROI challenges; experts emphasize organizational readiness and employee training for effective AI adoption.
- • AI investments in German businesses increased by 33% in 2025, but 46% saw no positive ROI (Kyndryl Report).
- • 90% of German companies expect significant AI-driven changes within a year; 65% adjusted cloud strategies due to geopolitical factors.
- • Failures in AI projects stem from unclear goals, insufficient operational maturity, and lack of governance.
- • Organizational consultant Rosemarie Thiedmann stresses the importance of 'KI-Readiness' and tailored employee training.
- • EU AI Act mandates training for all employees working with AI, highlighting the need for practical implementation.
Key details
German companies are intensifying investments in artificial intelligence (AI), but many are struggling to realize positive returns. According to the 2025 Kyndryl Readiness Report, investments in AI climbed by 33% compared to the previous year. However, nearly half, or 46%, of companies surveyed reported no positive return on investment (ROI) from these efforts. The report, based on input from 3,700 international business and IT leaders, highlights critical challenges such as scaling AI, governance, and measurable outcomes that impede successful deployment. In Germany, 90% of businesses anticipate comprehensive changes from AI within the next 12 months, and 65% have adjusted their cloud strategies due to geopolitical influences.
Kyndryl's findings identify three main obstacles leading to AI project failures: unclear objectives, inadequate operational and data maturity, and insufficient governance and security. Although 71% of companies have yet to use agent-based AI in production, 83% plan to implement it within a year. The report recommends five key actions to enable successful AI program execution: prioritizing use cases, enhancing data quality, defining strict agent usage guidelines, optimizing infrastructure, and enforcing effective cloud governance.
Meanwhile, organizational readiness and employee training emerge as essential factors for harnessing AI's potential. Rosemarie Thiedmann, a Holzkirchen-based consultant and author of “Viele Generationen, ein Team – Gemeinsam stark im Job mit KI,” emphasizes the importance of cultivating 'KI-Readiness' within companies. She compares AI's impact to the transformative introduction of electricity, noting that businesses must clearly define AI goals and tailor training to diverse employee digital skill levels. Thiedmann also places caution on the hype around generative AI, referencing a McKinsey study that finds it offers only 20% of added business value relative to analytical AI. Nevertheless, generative AI holds promise in preserving institutional knowledge amid workforce transitions. Additionally, compliance with the EU AI Act obligates companies to train all staff working with AI, underscoring the need for practical AI applications to ensure successful integration.