AI is crucial for any company to remain competitive. While many companies are already using this opportunity to automate processes, there are countless SMEs that are struggling.

They are sticking to traditional, tried and tested actions – and missing out on a unique opportunity to ensure competitiveness.

The following blog article takes a closer look at what AI has to offer SMEs, why many fail to recognize this opportunity and what examples of success already exist.

The Importance of SMEs

With 99% of all companies in Germany, SMEs represent a central part of the economy. This includes global market leaders, but also small craft businesses. As a result, they provide around 57% of all jobs in Germany (Braun, n.d.).

They often focus on family structures, long-term thinking and tradition. This focus on the long-term future ensures stability – but sometimes also a reluctance to embrace new technologies.

There are advantages and disadvantages, especially when it comes to digital or AI-based innovations. On the one hand, many SMEs are highly innovative – on the other hand, they often lack the know-how or courage to adapt new technologies at an early stage. This is precisely where a great opportunity lies, but also a challenge.

What AI can already do today – and what it will change tomorrow

AI is no longer a vision of the future, but part of everyday life. It is used by companies for a wide variety of applications:

• Optimize work processes and operate more efficiently
• Carry out quality control
• Optimize stock levels and delivery times
• Answer customer inquiries around the clock

These areas of application clearly show that the sensible use of AI contributes to increasing efficiency and reducing costs in companies. Looking ahead, the potential becomes even clearer. AI is increasingly being used for decision support in management, helps with product development or enables individualized offers – automated and affordable. Those who start to gather initial experience today will have an advantage tomorrow. Because AI is not hype, it is a tool. And as with any tool, it is important to use it correctly – preferably before the competition does.

Why do many SMEs hesitate?

Despite the opportunities offered by artificial intelligence, there is often reluctance among SMEs. And there are various reasons for this:

• A common stumbling block is simply a lack of knowledge. AI sounds futuristic and complicated to many – and the thought of dealing with it seems overwhelming.

• Added to this is the concern about hgh investment costs and the feeling that everything has to be turned upside down at once. However, small, clearly defined projects are often enough to gain initial experience.

• Concerns about data protection and IT security also play a role – especially in highly regulated industries. The fear of handing over sensitive data or no longer being responsible for your own processes is real and must be taken seriously.

But this is precisely where the opportunity lies: those who inform themselves at an early stage, undertake targeted further training and look for reliable partners can overcome these hurdles step by step. After all, it’s all about finding your own path – one that suits the size of the company and its own culture.

The real risks of doing nothing

Those who continue to wait and see when it comes to AI are taking a greater risk than many people realize. Because while other companies are optimizing their processes, developing products digitally and rethinking customer relationships, their own business is standing still.

stand still. This inevitably leads to competitive disadvantages – not in the distant future, but now. Without the use of modern technologies, there is a risk of efficiency losses, rising costs and falling margins. Customers will switch to the competition if they experience better service, more individual offers or shorter delivery times. Those who fail to keep up will lose market share.

Even more serious: innovative strength is moving to where new technologies are actively shaped – often abroad or into the hands of large tech companies. As a result, dependency on a few powerful providers is growing, while our own scope for creativity is dwindling.

But it is not yet too late. But if you wait too long, you risk being left behind.

First steps towards AI – even without a huge budget

Entering the world of AI doesn’t have to be complicated or expensive. The important thing is to get started in the first place – ideally with an honest look at your own starting position. There are various steps you can take to do this:

1. An AI check helps to identify potential and define realistic goals.
2. Employee training or targeted workshops also create a common understanding of the opportunities and limitations of AI. Many educational institutions and chambers of industry and commerce now offer practical courses – often subsidized.
3. It is also worth taking a look at federal, state and EU funding programs: a lot is possible, from consulting grants to investment aid.
4. The next step can be a small pilot project, for example in production planning or customer communication. It is important to keep an eye on the benefits from the outset and to clearly define the return on investment.

Companies do not have to reinvent the wheel on their own. Cooperation with start-ups, universities or regional AI centers brings fresh knowledge into the company – flexibly and often in a very practical way. This makes it clear that it doesn’t have to be a major AI project – but the first step is needed and anyone can take it.

Success Stories: SMEs that are growing with AI

Two successful practical examples from Germany show that artificial intelligence also creates real added value for SMEs:

1. The Wildbadmühle bakery in Rhineland-Palatinate uses an AI-based system for sales planning. Instead of relying on empirical values as in the past, an intelligent algorithm now helps to calculate exactly how many products, such as Christmas stolen, are needed and when. The result: less overproduction, significantly reduced night work and noticeable cost savings. At the same time, the more digital processes made the job more attractive for young employees – a real plus point in the shortage of skilled workers (Innovative AI examples from SMEs- Series: Best practice in companies (7), 2023).
2. Another example is provided by Drehtechnik Jakusch GmbH from Thuringia. AI supports shift planning there. The AI ensures that idle and standby times can be optimized. This has led to a noticeable increase in productivity without additional investment in machines or personnel (Best practice examples for AI in SMEs, 2023).

Both company examples confirm one thing: AI works – even with a manageable budget. You just need the courage to get started and pursue clear goals. It’s not perfection that counts, but the first step in the right direction.

Conclusion: Why should SMEs join in now?

AI is no longer a vision of the future, but a necessity for German SMEs. Companies that recognize this and get to grips with artificial intelligence will secure their competitiveness for the future. Not everyone has to become an AI expert. It is only crucial to understand how this technology works and how it can help companies move forward. It all depends on the first step. SMEs have the opportunity to benefit from AI through targeted measures such as pilot projects, further training and the use of funding programs. And if you wait now, you risk being left behind.