When Germany Seized the Future: Lessons from CAD for the AI Era
10 days ago
- #industrial-transformation
- #AI-implementation
- #second-mover-advantage
- Ilya Sutskever highlights the dissonance between AI benchmark improvements and lack of high-value industry applications.
- Enterprise AI spending surged from $2 billion in 2023 to $37 billion in 2025, yet 74% of companies see no tangible value.
- 42% of companies abandoned most AI initiatives in 2025, doubling the rate from the previous year.
- Germany's automotive crisis mirrors past disruptions, with market share in China dropping from 25% to 15%.
- The CAD revolution in the 1980s-90s saw Germany leverage second-mover advantage to dominate automotive design.
- Germany's success with CAD was due to its culture of precision, dual education system, and 'Hidden Champions' SMEs.
- AI implementation success hinges on integrating domain expertise, not just deploying generic AI solutions.
- Manufacturers achieve 3.7x ROI when AI augments human expertise rather than replacing it.
- The future belongs to integrators who combine AI with deep domain knowledge, not just AI inventors.
- Germany and other industrial leaders must leverage AI to amplify existing strengths and sovereign expertise.