Only 7% of German companies use generative artificial intelligence on a large scale, a Bundesbank survey found, according to a speech published Nov. 2 by the Bank for International Settlements.
The survey put the share already using the technology or planning to use it by year-end at 68%. The speech, “Capital needs AI, and AI needs capital - Europe's opportunity for more growth”, argued that wider adoption requires investment beyond software.
Around half of companies using generative AI, which produces content such as text, expect productivity gains. Its assessment of European investment needs drew on the German business survey, financing figures and research on capital requirements. It gave no survey fieldwork dates.
Companies need to change work processes, make use of their data and train employees to turn adoption into economic gains. It identified mechanical engineering, industrial automation, pharmaceuticals and chemicals as industries where Europe could apply the technology using its existing expertise.
The scale of the eventual gains remains uncertain. There was also no certainty that every investment being made today would pay off, qualifying its argument for more funding.
The Organisation for Economic Co-operation and Development estimated that nine major technology companies could invest a combined $4 trillion by 2030. That estimate appeared in the organisation's Global Debt Report 2026, published March 4. The speech described spending on data centres, chips and energy infrastructure as central to AI development.
Companies adopting AI also need money for equipment, software and training. It cited Jesús Fernández-Villaverde's “Saving for the Machines”, dated Oct. 26, for the argument that economic benefits depend on financing machinery and infrastructure alongside technological progress.
The speech distinguished between financing available to established businesses and funding for young companies. Smaller German businesses can borrow from European banks, while larger companies can also raise money through shares and bonds. Start-ups often depend on venture capital, funding for young businesses seeking growth.
European Central Bank figures cited in the speech put outstanding euro-denominated bonds issued by major US technology companies at about 40 billion euros. The central bank also put euro area households' financial assets above 36 trillion euros in the second quarter of 2026.
The speech argued that Europe needs to connect those savings with companies seeking investment. Young businesses too often struggle to finance expansion, potentially limiting their growth or pushing them to seek money and opportunities outside Europe.
The speech presented Germany's planned introduction of asset-funded pensions as one possible step towards broader participation in capital markets. It argued that Europe's ability to use AI across its economy would depend on mobilising investment through both banks and capital markets.
