German ingenuity meets the power of AI to shape the future of industries

By Agnes Heftberger, Corporate Vice President, Microsoft Germany

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This blog is part of the AI worldwide tour series, which highlights customers from around the globe who are embracing AI to achieve more. Read about how customers are using responsible AI to drive social impact and business transformation with Global AI innovation.

Germany stands at the forefront of a new era in AI, where strategic investments, public-private partnerships, and a focus on sustainable innovation converge to shape the future of industry and society. With significant governmental investment and growing adoption across key sectors, AI is poised to become a cornerstone of Germany’s economic transformation, ensuring global competitiveness and addressing critical labor shortages.

The country’s rapidly advancing AI capabilities have been supported by significant investments and partnerships, with Microsoft playing a pivotal role. Earlier this year, Microsoft announced a €3.3 billion investment in Germany to expand its AI and cloud infrastructure over the next two years.¹ This initiative aims to double the AI infrastructure in the country and includes efforts to establish new datacenters in regions like North Rhine-Westphalia and Frankfurt, supporting key industries such as pharmaceuticals and energy through low-latency services. Microsoft is also focusing on sustainable operations, planning to power these facilities with renewable energy sources by 2025.

In alignment with Germany’s broader national AI strategy, Microsoft has emphasized the importance of equipping workers with AI expertise, aiming to train up to 1.2 million people in new digital and AI capabilities by 2025.² This effort addresses labor gaps in sectors such as healthcare and manufacturing, which are adopting AI to increase efficiency and reduce operational costs.

The recent Microsoft AI Tour event in Berlin, Germany, featured several innovative Germany organizations leveraging AI to advance to the cutting edge of their industries. Spanning from higher education to travel and manufacturing, these organizations present inspiring case studies and represent the tip of the iceberg in terms of what is possible at the intersection of German ingenuity and Microsoft AI technology.

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IU International University of Applied Sciences (IU) prepares students for the future of work with AI-powered education

IU International University of Applied Sciences (IU), Germany’s largest and fastest-growing university with more than 130,000 students, is using AI to advance its mission of democratizing higher education globally through a hybrid model of on-campus and online studies. By using the power of Microsoft Azure OpenAI Service, the university developed Syntea, an AI avatar integrated into Microsoft Teams and Microsoft 365 Copilot, making learning more personalized, autonomous, and flexible.

Syntea’s impact has been profound, driving a 27% reduction in the time students need to complete online courses. In addition, IU is testing a new model within Syntea’s exam trainer function to improve grading while upholding its same high-quality standards and ensuring the solutions to be dependable. These innovations enhance the quality of education while making it more accessible and equitable.

To further equip students for an AI-powered future, IU partnered with Microsoft to create the IU Copilot School featuring Microsoft. With the IU Copilot School, every student gains access to Microsoft 365 Copilot and in the future seamlessly to Syntea, fostering familiarity with AI tools that will shape tomorrow’s workforce. This initiative ensures AI is embedded across all study programs, preparing graduates to excel as knowledge workers in the evolving job market.

Looking ahead, IU’s team of developers is exploring ways to extend the way of exam grading by leveraging the next generation of Syntea with advanced AI agents. IU’s Syntea Newskilling project leverages the power of AI-driven mentorship to redefine workplace learning and development by seamlessly integrating personalized upskilling and onboarding journeys directly within Microsoft Teams, empowering employees to achieve both individual and organizational success.

By seamlessly integrating AI into education and workforce preparation, International University of Applied Sciences (IU) is setting a bold precedent for how technology can redefine learning and unlock new opportunities for students and professionals alike.

thyssenkrupp Automation Engineering alleviates labor shortage with Siemens Industrial Copilot

Siemens and Microsoft have elevated the Siemens Industrial Copilot, now leveraging Azure OpenAI Service to meet rigorous manufacturing and automation demands at scale. The Industrial Copilot combines Siemens’ specialized industry expertise with advanced generative AI to address complex requirements, bringing new levels of efficiency and precision to industrial processes.

thyssenkrupp Automation Engineering, a co-creation partner and one of more than 100 companies using the Siemens Industrial Copilot, plans to expand its use globally. The Industrial Copilot plays a critical role in thyssenkrupp’s response to the skilled labor shortage affecting Europe and the United States, enabling smoother operations even with less-experienced staff.

A standout application is in thyssenkrupp’s battery quality systems, where the Industrial Copilot supports automated processes for battery assembly lines—key to the sustainable energy transition. For electric vehicle batteries, for example, the Industrial Copilot integrates sensors, cameras, and measurement systems to monitor quality at each production stage, detecting any issues that could affect reliability. By automating data management, sensor configuration, and stringent reporting requirements, the Industrial Copilot ensures precision in quality control, freeing engineers to focus on higher-value tasks. Additionally, the Industrial Copilot’s real-time problem-solving and documentation capabilities reduce downtime, while making machinery easier for early-career and unskilled workers to operate effectively.

Recognizing that technology oftentimes outpaces the machinery market, thyssenkrupp Automation Engineering is now the first to plan to use the Industrial Copilot globally, not only addressing labor challenges and advanced automation demands company-wide, but enabling their machines to keep pace with change into the future.

Ottobock revolutionizes prosthetics with AI for greater quality of life

In pursuit of their mission to empower people with disabilities to move freely and independently, Ottobock is transforming individualized prosthetics and orthotics with the power of AI. For over a century, the company has faced a persistent challenge within the prosthetics and orthotics industry: achieving a perfect fit of body interfaces such as sockets or braces.

With the help of the Microsoft Azure platform, Ottobock now analyzes detailed images of body parts to create customized body interfaces. This approach not only improves the precision and comfort of their devices, making high-quality solutions accessible to a broader range of patients, but also accelerates production while reducing costs. The streamlined process has further enabled less experienced technicians to deliver consistent, standardized products—helping alleviate the industry-wide shortage of skilled orthopedic technicians.

Building on these successes, Ottobock is actively exploring additional AI applications to enhance the patient experience. With the potential of self-learning prosthetics on the horizon, Ottobock continues to elevate the quality of life for users by combining cutting-edge technology with compassionate care.

Lufthansa elevates customer experience and streamlines operations with AI-powered solutions

Lufthansa Group continuously explores new ways to enhance premium travel experience of its passengers. This includes exploring possibilities of using generative AI. For example, in the Lufthansa Group Digital Hangar, an animated 3D avatar was developed as part of a test, guiding passengers from initial travel inspiration to flight booking through an exchange with an Avatar in natural language. Additionally, with the help of Microsoft’s generative AI, other applications were implemented, such as expanding the chat assistant, processing compensation claims, and automating website content creation.

Otto Group scales AI innovation, transforming e-commerce and healthcare

Otto Group and its subsidiaries are harnessing the power of AI to accelerate innovation across industries. Group company OTTO has rolled out GitHub Copilot and the entire GitHub Platform for all software developers. This has enabled the teams to work numerous AI use cases simultaneously, which are used in e-commerce, live shopping, and by various subsidiaries of the Otto Group. One standout success is at Medgate, Otto Group’s leading telehealth subsidiary, which leverages AI-powered Copilot technology to address Germany’s healthcare challenges.

Medgate developed a medical Copilot that transforms physician workflows and elevates patient care. Leveraging a custom-trained Azure speech and Azure OpenAI model, the Copilot summarizes consultations, supports triage, and provides real-time translations. In a medical chat powered by Azure OpenAI Service, physicians can enter keywords to generate follow-up questions and treatment recommendations. With this solution, Medgate reduces physicians’ administrative workload, giving doctors more time to focus on patient care—a critical advantage amid Germany’s shortage of 50,000 doctors and rising healthcare costs, which account for 12.8% of the nation’s GDP.

The impact is measurable: case documentation times are cut by 10 to 20%, and AI-generated prompts reduce message drafting time by up to 40%. More than 60% of these AI-generated responses are utilized by doctors, demonstrating high acceptance and trust.

Otto Group’s successful integration of AI extends beyond Medgate, with the GitHub Cloud Platform enabling secure, scalable AI deployments across the Otto Group’s diverse operations. As Otto Group continues to lead in AI innovation, it exemplifies how technology can enhance both business performance and essential public services, driving meaningful impact across industries.

AI for everyone in Germany

As Germany cements its position as a global leader in AI, the ingenuity of its organizations continues to shape industries through transformative AI applications. From advancing education with AI-powered tools at IU International University of Applied Sciences to modernizing manufacturing at thyssenkrupp and enhancing healthcare services through Otto Group’s Medgate platform, these enterprises exemplify how AI can drive progress while addressing societal challenges.

Microsoft’s investment in AI infrastructure and skilling reflects a long-term commitment to strengthening Germany’s digital capabilities and a shared goal to empower businesses and workers while fostering innovation that aligns with environmental sustainability and data security standards. Together, they are driving a future where AI not only serves as a tool for competitive advantage but also as a force for good—ensuring that Germany’s AI ecosystem becomes a model of innovation, resilience, and responsible development.