Germany's AI Adoption Doubles, Blockchain Stagnates at 3.1%

In Germany, the adoption of blockchain technology has been slow, while artificial intelligence (AI) has seen a significant surge in implementation. A recent survey by the Hanseatic Blockchain Institute, utilizing data from the Ifo economic survey, highlights this disparity. In 2023, only 3.2% of surveyed companies reported using blockchain, a figure that slightly decreased to 3.1% in 2024. While there was a slight increase in companies planning to adopt blockchain, rising from 3.7% in 2023 to 4.1% in 2024, the majority of businesses still consider the technology irrelevant, with 72.6% declaring it “no topic” in 2024.

Sector-specific analysis reveals that the financial services sector is the leading adopter of blockchain technology, with 57% of blockchain-using companies implementing it. Digital identities also show promise, with 30% of blockchain users having implemented related solutions. However, in other sectors such as services and retail, the adoption rates are significantly lower, with over 76% and 80% of companies finding blockchain irrelevant, respectively.

In contrast, AI adoption has seen explosive growth. The percentage of companies implementing AI doubled within a year, surging from 13.3% in 2023 to 27% in 2024. The proportion of businesses planning to integrate AI also rose dramatically from 9.2% to 18%. The sharp decline in companies dismissing AI as irrelevant, dropping from 40.8% to 21.2%, further underscores this trend. Cloud computing remains the most pervasive technology, with 46.5% of companies utilizing it in 2023, far outpacing both blockchain and AI.

The survey identifies several factors hindering wider blockchain adoption. The complexity and perceived uncertainty of the technology, coupled with a risk-averse business culture, contribute to its slow uptake. Public perception, often tainted by associations with volatile cryptocurrencies, further complicates matters. Additionally, the blockchain oracle problem, the difficulty of authenticating data on the blockchain, and the lack of skilled workers are significant hurdles. Despite these challenges, the financial services sector and digital identities offer promising areas for blockchain application.

The Hanseatic Blockchain Institute suggests that targeted education and training, collaborative partnerships, and government support are necessary to accelerate blockchain adoption. The study also calls for prioritizing data sovereignty and continuing research on the long-term implications of the technology, especially in light of new EU regulations such as the Markets in Crypto Assets (MiCA) regulation. According to Moritz Schildt, chairman of the Hanseatic Blockchain Institute, technological innovation does not guarantee automatic adoption. He stated that “the advantages and potentials of a new technology do not spread automatically,” adding that the replacement of proven processes with something new is not a given, and in many cases, it is not yet foreseeable when exactly and how exactly the new technology will be adopted, in which areas and for which tasks it will prove useful, and in what form a ‘mass adoption,’ i.e., widespread use, will develop.”