"Individuals to face consequences, literally wearing symbols of punishment!"

Thymian Bussemer, the HR strategy chief at Volkswagen (VW), has shared his insights on the opportunities and challenges posed by digitalization and automation in the German economy. In an interview with "Automobilwoche," Bussemer discussed how artificial intelligence (AI) could impact the German economy, particularly in the automotive industry.

According to Bussemer, about half of tasks could change due to digitalization and automation, but this does not necessarily mean the same number of jobs will disappear. He emphasized that while jobs may be lost, new ones are also created.

AI is being implemented in various industries, including the automotive sector. Processes previously handled by lawyers, HR professionals, and other administrative roles are now being automated, such as reconciling terms and conditions when an Original Equipment Manufacturer (OEM) places an order with a supplier.

Bussemer predicts that the headquarters of German corporations will likely be significantly leaner in a few years, with bureaucracies within large companies, like lawyers, controllers, and HR professionals, now under pressure due to automation. However, intelligent AI could help reduce labor costs and keep know-how and a part of the jobs in Germany.

The automotive industry is experiencing a boost in automation, with tasks in knowledge work being particularly affected. This automation boom in the economy was not expected by many experts ten years ago. The digital transformation in the automotive industry is advanced, particularly through technologies like laser cutting, which plays a key role in manufacturing lightweight, stable vehicle bodies, components, and rapid prototyping, reflecting deep integration of digital and automation technologies.

However, Bussemer states that the old structure of German companies is dissolving due to these factors. Large companies in Germany are under pressure due to global competition and advancing digitization. A VW supplier has drawn a radical conclusion that the loss of jobs due to artificial intelligence is no longer acceptable.

New requirements are emerging in areas such as liability, compliance, sales, and regulation from Brussels. A comprehensive spread of artificial intelligence (AI) in German companies is expected to continue in the next five years, with 84.5% of companies already using AI primarily to relieve employees of routine tasks, support complex tasks, improve quality, and address skilled labor shortages; however, 27.1% of companies anticipate job cuts due to AI in this period.

Bussemer sees both opportunities and increasing complexity in this digitalization and automation landscape. He believes that the automotive industry is in the middle in terms of AI implementation, with administrative areas often lagging behind compared to the product and customer-facing areas. Despite the challenges, Bussemer remains optimistic, stating that the future of work in Germany will continue to evolve, with new jobs being created alongside those that are lost.