German Companies Boost AI Investments to Enhance Customer Journeys Amid Data Challenges

A recent Lünendonk & Hossenfelder study released on November 5, 2026, reveals that 79% of German companies plan to increase spending on digital customer experiences, signaling a strong move towards digital transformation to optimize customer journeys. However, only about one in three firms currently uses AI to steer their customer engagement processes, highlighting room for growth in AI adoption.

Experts from KPMG stress that successful AI implementation depends critically on data harmonization. Inconsistent data can cause costly errors, as evidenced historically by incidents like NASA’s Mars Climate Orbiter failure. Companies need to develop robust data strategies, governance structures, and compliance mechanisms to ensure high data quality.

Technological solutions such as Master Data Management and data integration tools play a key role in achieving data consistency. Additionally, some sectors, like finance and discount retail, have made notable progress by leveraging clean and harmonized data to better understand customers and tailor offerings effectively.

KPMG advocates for internal Data Marketplaces to enable easy access to unified data across departments, accelerating innovation in data products and AI solutions. This strategic approach can unlock value creation by integrating data into core business processes, ultimately enhancing the digital customer journey across German companies.