A new study by WIRE, supported by Microsoft Switzerland and the ETH AI Center, shows the potential of AI for society and the economy in Switzerland. At the same time, the Swiss Artificial Intelligence competition promotes young talents such as Divij Haralalka and Andrea D’Ignazio, who impressed with their Europa Park application.
Beat Hurimann – October 3, 2024
Young talents inspire with creative applications
The Swiss Artificial Intelligence competition offered young talents under the age of 20 the opportunity to demonstrate their skills in the field of AI. In the “Creative Coding” category, Divij Haralalka and Andrea D’Ignazio won with their application “Thriller Route Optimizer”, which helps visitors to Europa-Park to use all trains without waiting times. This innovative solution convinced the jury. The award was presented by Fiona Könz, project manager at the ETH AI Center in Zurich. The renowned competition, organized by the ETH AI Center, was initiated by the Economic Directorate of the Canton of Zurich and the Canton of Schwyz and carried out in collaboration with the Federal Artificial Intelligence Competition. Sonja and Lena Merkle won in the “AI for Good” category with their AI application “Ingredient Scanner”. Both winning teams received a voucher worth 2,000 francs.
Divij Haralalka (left) and Andrea D’Ignazio won in the Creative Coding category with their work “Thriller Route Optimizer”
Sonja and Lena Merkle won with their AI application Ingredient Scanner.
Study: Productivity gains thanks to AI
According to the study, 68 percent of those surveyed expect that productivity in companies will increase through the use of AI in the next five years – 27 percent even expect a strong increase. Almost half of those surveyed expect these productivity gains from AI in the next two years. The majority of the remaining respondents expect a noticeable increase in productivity over the next five years.
Dr Alexander Illic, Director of the AI Center ETH Zurich during the welcome in the lecturers’ foyer of the ETH Center
Increased ability to innovate
In addition to productivity gains, it is often emphasized that AI can increase companies’ ability to innovate. The survey results also show this: 86 percent of those surveyed are of the opinion that organizations can significantly promote their innovative strength through the use of AI. Profitability is closely linked to productivity gains and the ability to innovate. Here too, the majority of respondents (73 percent) expect an increase, although only 9 percent expect a strong increase.
Versatile uses of AI
The study shows that artificial intelligence opens up numerous areas of application to overcome future challenges in Switzerland:
The first priority was the expansion of research excellence with 87 votes. This suggests that Switzerland could further strengthen and expand its already internationally known reputation in research thanks to AI.
WIRE Company Survey 2024 – Challenges.
The shortage of skilled workers comes in second with 72 votes. This finding is consistent with the results of the expert interviews conducted. These emphasized that although AI cannot completely solve the skills shortage, its complementary technology could significantly reduce the negative effects.
Third place goes to the increasing pressure for growth and innovation, which was mentioned by 58 respondents. Similar to expanding research excellence, AI could also play a key role here by helping companies become more innovative and competitive.
Other options such as maintaining and promoting Swiss educational quality, dealing with climate change and increasing the attractiveness of the location also received significant attention in the study.
Potential for economic growth and productivity
From the perspective of the organizations surveyed, economic productivity is likely to increase through AI in the next five years: 68 percent expect an increase and 27 percent even expect a strong increase. Only a minority of 5 percent believe there will be no change and no one assumes that productivity could even decrease. This assessment stands in contrast to the previously unmeasurable productivity gains.
Source: WIRE Company Survey 2024
Wide range of application areas
When asked about the AI application areas that offer the greatest added value for the Swiss economy, a wide range of possible applications emerges. The greatest potential was – unsurprisingly – attributed to the (partial) automation of repetitive tasks, support in software development, for example through programming, troubleshooting and documentation, as well as data analysis and interpretation. A clear indication of the future role of AI as a “work tool” that in the background helps to increase efficiency and support human activities.
WIRE company survey 2024 – fields of application
Consequences of AI for society in Switzerland
WIRE Company Survey 2024 – Impact of AI on Swiss society
When assessing the consequences of AI on society, opposing perspectives emerge: With regard to people’s decision-making ability, 47 percent of those surveyed believe that this ability will increase through the use of AI. However, the remaining 53 percent expect either no change or negative effects. A differentiated analysis of the possible influencing factors that influence decision-making ability shows that on the one hand it is about the quality of the available information, but on the other hand it is also about the ability to use it. AI will certainly lead to a simpler and greater density of decision-making bases, but on the other hand, these can be incorrect, especially with generative AI. In addition, a high density of information does not necessarily bring more clarity and could instead contribute to further overwhelm.
AI as an opportunity for Swiss SMEs
The results of the study particularly underline the potential of AI for small and medium-sized enterprises (SMEs). By using specialized and smaller AI models, even companies that don’t have huge data sets can reap the benefits of the technology. These models are more energy efficient and better tailored to specific needs. This allows SMEs to increase their efficiency and be able to develop innovative solutions. On the other hand, the study showed a great need for AI knowledge transfer among SMEs, which the study creators want to address more in the future.
«With AI and Gen AI, we have powerful technologies that can solve some of the most pressing challenges of our time. It is our responsibility to use these technologies in such a way that they benefit us optimally. The expansion of AI and Gen AI capabilities is essential to accelerate the digital transformation in Switzerland and to ensure the country’s competitiveness and innovative strength,” said Catrin Hinkel, CEO of Microsoft Switzerland.
Catrin Hinkel, CEO of Microsoft Switzerland (Image: Beat Hürlimann)
“The predicted economic potential of AI will only contribute to long-term value creation in Switzerland if social and ecological requirements are systematically taken into account,” adds Dr. Stephan Sigrist, study author and founder of the think tank WIRE “The benefits of AI for Switzerland are not only available through corporations and startups, but also through the empowerment of SMEs. Switzerland has the opportunity to position itself internationally as a leading AI location, but only if it finds the courage to position itself in the existing competition through its traditional and future strengths.
Dr. Stephan Sigrist, study author and founder of the think tank WIRE (Image: Beat Hürlimann)
9 theses on the long-term influence of AI
Based on the findings of the quantitative survey of the organizations and the in-depth expert discussions, which focus on the medium-term influence of AI, according to the study authors, in conjunction with further findings from existing and new studies, forward-looking assessments from the in-depth discussions and the linking formulate nine theses on the long-term and further developments based on arguments. These provide food for thought, inspiration, but also critical information that could be relevant for basic strategic planning when dealing with AI in the next decades.
- The Rise of the «AI-Verse»: AI will be omnipresent in the future and will be used both in the background and in direct interaction with people. Applications range from simple tools to complex solutions for cutting-edge research.
- From «Disruption» to Evolution»: The integration of AI will be an evolutionary process that takes time and requires regulatory and social frameworks. The success of AI depends on the quality of AI-based services and the trust of people.
- Rethinking Intellectual Property: Competition for quality-certified training data will increase. It is important to respect copyrights and data protection and to conduct a social debate about the handling of intellectual property in connection with AI.
- Small will be Beautiful: In addition to large AI models, smaller, specialized and open source-based models will become more important. Switzerland can play a key role here, especially for SMEs.
- From Design to Selection: Generative AI is leading to an increase in automatically generated solutions. People become selectors and curators. Switzerland should focus on useful AI solutions and not be distracted by the variety of options.
- The Hidden Longtail of AI: In addition to large AI platforms, there will be many small niche providers. Switzerland can strengthen its niche economy by making it easier for SMEs and start-ups to access AI.
- The Regulator’s Dilemma: AI can help with the implementation of regulations, but it also poses the risk of bureaucracy and a lack of transparency. Switzerland should strive for forward-looking and cautious regulation that enables both security and innovation.
- Reverse Societal Impact: The use of AI can lead to a loss of competence and a changed understanding of quality. Switzerland should promote complementary skills such as critical thinking and creativity.
- Bot-Bot Normalcy: While the increase in bot-bot interactions increases efficiency, it also poses the risk of disconnection and loss of reality. Switzerland should ensure that people remain involved in important decisions.
Die Study is based on a survey of Swiss companies and experts, supplemented by interviews and case studies. Quantitative data was complemented by qualitative analysis to provide a complete picture of the current and future impact of AI. Different industries and company sizes were taken into account to ensure the broad applicability of the results. A total of 111 representatives of Swiss companies took part in the quantitative survey. In addition, 20 qualitative interviews were conducted with experts from different sectors and areas of knowledge in the direct and indirect field of AI.
