German Companies Assess AI's Potential to Replace Skilled Workforce Qualifications

A recent ifo Institute survey conducted in May 2026 among around 3,000 German companies using artificial intelligence (AI) reveals mixed perceptions about AI's ability to substitute formal qualifications and work experience in the workforce. About 20% of these companies find it easy or very easy to replace skilled or university-educated workers with AI-supported employees lacking formal qualifications. However, a majority of 55.4% believe such replacement is difficult or impossible. Regarding replacing experienced workers with AI-supported employees who lack experience, only 15% find this feasible, while 62.7% consider it difficult or not possible at all.

These attitudes vary significantly by sector. Retail leads with 28.6% of companies believing AI can easily replace formal qualifications, followed by 19.7% in services, 14.6% in manufacturing, and 9.3% in construction. The potential for AI to compensate for work experience is even less pronounced, with 22.9% of retail firms believing in easy replacement, lower percentages in other sectors.

Anna Ruffert, a researcher at the ifo Institute, noted that AI is indeed transforming the workforce, and in certain cases, formal qualifications can be partially replaced. However, substituting work experience remains notably challenging. This survey highlights the cautious but evolving stance German companies hold towards integrating AI as a workforce alternative, emphasizing that qualifications and experience still play a critical role despite technological advances.