Sopra Steria | F.A.Z.-Institut
Disruptive potential
How generative AI is
redefining business models
Generative AI (GenAI) thinks, writes and designs faster and more precisely than we humans are usually able to. The use of GenAI therefore goes beyond optimising processes. The technology is calling entire business models into question and creating new ones – at least that is the narrative. But how far have companies actually come today? To what extent are they tapping into the potential of generative AI and what does the use of this technology mean in concrete terms for their business models? This is what F.A.Z. Institut and Sopra Steria wanted to discover with this survey. You can read the key findings on this website, and find additional expert interviews and further insights in the free study report.
“GenAI is much more than an efficiency tool – the technology can fundamentally change business logic, and companies should sharpen their focus on this.”
Michael Buttkus, Head of Sopra Steria Next Germany
Companies are still experimenting
- GenAI is here to stay: Around half of German companies are now using generative AI.
- 64 per cent of users apply GenAI selectively in individual areas. Only one in five is scaling the technology company-wide.
There is a lot of experimentation, but little transformation
Many companies in Germany are currently still at the trial stage or are exploring the technology more intensively for the first time: just under half are already using generative AI. Corporations with 5,000 or more employees are the pioneers. Small companies, on the other hand, are more hesitant. They often lack the expertise, budget and personnel to integrate the technology.
0%
already use generative AI.
0%
are preparing or planning to use generative AI.
0%
do not use generative AI and are not planning to do so.
Company decision-makers; n = 189
Source: F.A.Z.-Institut, Sopra Steria
Use is still selective
When a company uses generative AI, it is often in selected areas: Around two thirds of the user group are applying the technology selectively, while a further 14 per cent are looking for suitable use cases. Only one in five companies that use GenAI are deploying the technology company-wide. Overall, it seems that many are struggling to operationalise and scale pilot projects beyond the trial phase. However, the deep integration and company-wide scaling of the technology is a key lever. Find out in our study report what potential this can unlock for your company.
64%
of the AI users surveyed apply
generative AI in individual areas.
Users of GenAI; n = 90
Source: F.A.Z.-Institut, Sopra Steria
What do you think: In which of our respondents’ business areas is generative AI used most frequently?
Want to know if you are right? Then move your mouse cursor over the tiles and find out …
Rank 1
Marketing/
corporate communications
(40%)
Rank 2
IT
(36%)
Rank 3
Sales
(31%)
Multiple choice; company decision-makers who use generative AI in individual departments; n = 128
Source: F.A.Z.-Institut, Sopra Steria
Prioritising areas of application with efficiency potential
Companies that only use generative AI in a few departments or are planning to do so sometimes choose very different application areas in which to do this. Most frequently areas of the company where success can be realised quickly are selected. These include departments such as marketing (40 per cent), IT (36 per cent) and sales (31 per cent). The respondents are focussing primarily on making processes more efficient and reducing costs. In contrast, innovative potential, ranging from the development of new products to entire business models, is hardly utilised.
Departments in which respondents rarely use generative AI are primarily logistics (14 per cent) and research & development (18 per cent), with the latter being so important for the future of the German economy. However, it is precisely in these neglected units that considerable growth opportunities lie dormant: The first companies in the chemical and pharmaceutical sectors, for example, are relying on the support of generative AI create product designs and develop prototypes for materials and medicines faster.
Interview
“End users, just like us”
Generative AI has the potential to change entire business models. Nevertheless, its current use in most companies is still mainly at the process level. Dr Axel Schulz, Head of the AI and Data Intelligence Centre at DB Fernverkehr, talks about the reasons in an interview.
Dr Schulz, what role does AI currently play at Deutsche Bahn?
AI is one of the key technologies for Deutsche Bahn to drive digitalisation. S3 is a restructuring programme we have launched with the aim of becoming more punctual, more reliable and more economical. Digitalisation and the use of AI in the right places can and will help us achieve this. …
Do you want to know what happens next?
Read the full interview in the study report
Underestimated effects of GenAI
- 81 per cent of users of generative AI see it as a (very) large opportunity to further develop their existing business model.
- The technology is seen as a risk to their own business model by 11 per cent of users.
Awareness of benefits increases with practical experience
The capabilities of generative AI are enormous: The technology can handle complexities that employees were previously only able to manage with great effort or not at all. A major advantage of GenAI is that it can be used along the entire value chain — from logistics through production and sales & marketing to customer service. However, non-users of the technology hardly recognise such opportunities at present. Instead, the majority of them believe that generative AI is overestimated as a game changer.
60%
of the non-users surveyed believe that generative AI is overestimated as a game changer.
Non-Users of GenAI; n = 42
Source: F.A.Z.-Institut, Sopra Steria
Majority regard their business as safe
Two fifths of non-users state that the use of generative AI offers little or no opportunity to further develop their own business model. They do not see GenAI as an effective means of solving problems such as insufficient staff or a lack of expertise. The situation is different for companies that already use it: Four out of five see (very) large opportunities to expand or redesign their business model with the aid of the technology. Early adopters are more likely to recognise the range of possibilities offered by generative AI and know where its use is worthwhile. They are also better at analysing the direction in which the market will develop and making targeted adjustments to their business models.
Users
0%
Users of GenAI; n = 90
Source: F.A.Z.-Institut, Sopra Steria
Non-users
0%
Non-users of GenAI; n = 42
Source: F.A.Z.-Institut, Sopra Steria
Only few companies surveyed feel threatened by the capabilities of GenAI. 11 per cent of users see high to very high risks to their own business model in the technology; among non-users, the proportion is almost twice as large. Accordingly, the disruptive effects of the large language models are greatly underestimated.
Just 15 per cent of respondents believe that GenAI will render most of today’s business models superfluous in the future. The majority of respondents fail to realise how drastic the changes will be for some industries.
How will generative AI affect business models? This is what our interviewees say:
More than just process optimisation
- 60 per cent of users expect to be able to offer other products/services in the next three years thanks to GenAI.
- Around nine out of ten (prospective) users expect GenAI to change customer and HR management in the next three years.
Only a few recognise the full disruptive potential
More individualised offers, shorter innovation cycles, additional services or a shift in activities: The use of generative AI can change and improve much of a companies’ product or service range and the associated value proposition. Three out of five users of generative AI assume that this will be the case in the next three years. By contrast, the proportion of prospective users who expect this is significantly lower (37 per cent). Users in particular recognise the disruptive potential of the technology for their business model: One in three users believe that generative AI will enable them to address new customer segments in the next three years. In addition, around one in six in this group can imagine addressing new target markets.
Proportion of those who expect to offer other products/services in the next three years:
60%
users of GenAI
n = 90
Source: F.A.Z.-Institut, Sopra Steria
37%
of prospective users of GenAI
n = 57
Source: F.A.Z.-Institut, Sopra Steria
12%
of non-users
n = 42
Source: F.A.Z.-Institut, Sopra Steria
Redefining customer relationships and utilising knowledge everywhere
The (prospective) users have a relatively concrete idea of the upheavals caused by the use of generative AI, particularly in the areas of customer and HR management. For example, 88 per cent of this group assume that relationships with their customers will change in the next three years. By using GenAI and large language models that are specially trained in the language of an industry, survey bots can be generated in real time for market research, for example. 91 per cent of (prospective) users also see major changes for HR management – above all in the sub-area of knowledge management (70 per cent).
52 per cent of (prospective) users also estimate that there will even be new business models in the future that are completely driven by generative AI. Decision-makers in Germany therefore do not view generative AI as hype. However, the topic of transforming business models is not currently at the top of their agenda. For companies, however, this means that companies run the risk of missing out on innovation potential.
Source: F.A.Z.-Institut, Sopra Steria
Interview
“Generative AI helps us to develop drugs faster, more selectively and more efficiently”
Not many companies have recognised the transformative effects of generative AI on business models yet. Merck is doing pioneering work in this area. The science and technology company is using generative AI to improve research, diagnostics, production and customer service. It has set up a wide range of training programmes to ensure the technology is used successfully. In this interview, Walid Mehanna, Chief Data & AI Officer at Merck, and Michael Buttkus, Head of Sopra Steria Next Germany, talk about success factors and obstacles in the use of generative AI.
Mr Mehanna, what role does generative AI currently play in your organisation?
Mehanna: Generative AI is the driving force behind our corporate vision ‘Sparking Discovery, Elevating Humanity’. The application of technology is crucial to accelerating innovation, increasing efficiency as well as value creation, and improving people’s standard of living. That is why we have been working with data analytics and AI for a long time. Generative AI is therefore a logical extension of our existing technology portfolio.
Do you want to learn more about GenAI at Merck?
Read the full interview in the study report