Six out of ten industrial companies in Luxembourg are using AI in an advanced way

Six out of ten companies in Luxembourg are already using artificial intelligence at an “advanced” stage, according to a survey published by industry lobby group Fedil on Tuesday.

A total of 114 companies – the majority in the manufacturing, logistics, IT and construction sectors – were surveyed by Fedil on their use of artificial intelligence and generative AI, and the impact these have had on their business.

More than three-fifths of firms (63%) are already using AI “at a more advanced stage”. Just over a quarter of companies – 27% – said they are producing or developing AI tools, 23% are in the experimentation or proof-of-concept phase, and 16% are still in the awareness phase.

A majority of companies in the manufacturing sector – eight out of ten – said they expect AI to benefit their business financially through cost reductions and process efficiencies in the future, with the positive outlook shared generally by respondents across all sectors.

“Respondents expect AI to significantly improve process optimisation and control, while generating financial gains,” Fedil said in a press release.

Disparities between sectors

However, there are disparities in uptake across different industries, with the IT sector showing a high level of AI integration, a trend which is not yet reflected in manufacturing firms. “The manufacturing sector is showing strong interest in AI, but is still cautious about implementing it”, said the Fedil report.

In terms of use, AI is mainly used to increase efficiency within companies. In particular, it is used for automation, customer experience, content creation and research and development.

“A majority of companies are embracing the generative AI revolution, recognising its potential to increase productivity, improve customer service and streamline internal processes,” the Fedil report stated.

Among the challenges posed by AI to businesses is the issue of data governance, with more than half of companies surveyed – 56% – saying they have data governance policies in place, “marking a step towards greater data integrity, regulatory compliance and risk mitigation”.

However, only 38% plan to host generative AI solutions locally, raising concerns about data sovereignty.

In addition to the lack of local hosting options for AI tools, Fedil points to several other challenges that “continue to hinder the widespread adoption of AI” in Luxembourg businesses. These included the accessibility and quality of the data needed to implement AI solutions, lack of in-house expertise and the limited visibility of key players, combined with a mismatch between training provision and business demand.

While Luxembourg’s industrial sector has embraced the revolution promised by artificial intelligence, businesses still need to overcome several obstacles if the technology is to reach its full potential.

“Companies must be able to make use of targeted training initiatives that help to fill current knowledge gaps and develop in-house expertise”, recommended the Fedil report, which also advocates “the wider and more consistent adoption of robust data and AI governance frameworks”.

(This article was originally published by Virgule. Machine translated, with editing and adaptation by John Monaghan)