AI and Switzerland: study shows opportunities, competition promotes talent

A new study by W.I.R.E., 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 the jury with their Europa Park application.

Beat Hürimann - 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. Divij Haralalka and Andrea D'Ignazio came out on top in the "Creative Coding" category with their "Thriller Route Optimizer" application, which helps visitors to Europa-Park to use all the rides without having to wait. This innovative solution impressed the jury. The prize was presented by Fiona Könz, project manager at the ETH AI Center in Zurich. The prestigious competition, organized by the ETH AI Center, was initiated by the Department of Economic Affairs of the Canton of Zurich and the Canton of Schwyz and held in collaboration with the Federal Artificial Intelligence Competition. Sonja and Lena Merkli won the "AI for Good" category with their AI application "Ingredient Scanner". Both winning teams received a voucher worth CHF 2000.

Divij Haralalka (left) and Andrea D'Ignazio won in the Creative Coding category with their work "Thriller Route Optimizer"

Sonja and Lena Merkli won with their AI application Ingredient Scanner.

Study: Productivity gains thanks to AI

According to the study, 68% of respondents expect productivity in companies to increase over the next five years through the use of AI - 27% even expect a strong increase. Almost half of those surveyed expect these productivity gains through AI in the next two years. The majority of the remaining respondents expect a noticeable increase in productivity in the next five years.

Dr Alexander Illic, Director of the AI Center ETH Zurich during the welcome address in the lecturers' foyer of the ETH Center

Increased innovative capacity

In addition to productivity gains, it is often emphasized that AI can increase the innovative capacity of companies. This is also shown by the survey results: 86% of respondents believe that organizations can significantly boost 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%) expect an increase, although only 9% expect a strong increase.

Versatile application possibilities of AI

The study shows that artificial intelligence opens up numerous areas of application for mastering future challenges in Switzerland:

First and foremost, the expansion of research excellence stands out with 87 votes. This indicates that Switzerland could further strengthen and expand its already internationally renowned reputation in research thanks to AI.

The shortage of skilled workers follows in second place with 72 votes. This finding is in line with the results of the expert interviews conducted. In these, it was emphasized that although AI cannot completely eliminate the shortage of skilled workers, its complementary technology could significantly reduce the negative effects.

Third place was taken by the increasing pressure to grow and innovate, which was mentioned by 58 respondents. Similar to the expansion of research excellence, AI could also play a key role here by helping companies to become more innovative and competitive.

Other options such as maintaining and promoting the quality of Swiss education, 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 over the next five years as a result of AI: 68% expect an increase and 27% 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 contrasts with the productivity gains that have not yet been measurable.

Broad spectrum of application fields

When asked about the AI application areas that offer the greatest added value for the Swiss economy, a broad spectrum of possible applications initially emerges. Unsurprisingly, the greatest potential was 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. This is a clear indication of the future role of AI as a "work tool" that helps to increase efficiency and support human activities in the background.

W.I.R.E. company survey 2024 - fields of application

Consequences of AI for society in Switzerland

W.I.R.E. company survey 2024 - Influence of AI on Swiss society

When it comes to assessing the impact of AI on society, there are conflicting views: With regard to people's ability to make decisions, 47% of respondents believe that this ability will increase as a result of the use of AI. However, the remaining 53% expect either no change or negative effects. A differentiated analysis of the possible factors influencing decision-making ability shows that, on the one hand, it is about the quality of the information available, but also about the ability to use it. AI will certainly lead to a simpler and greater density of decision bases, but on the other hand these can be incorrect, especially in the case of generative AI. In addition, a high density of information does not necessarily bring more clarity and could instead contribute to further excessive demands.

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, companies that do not have huge data sets can also benefit from the advantages of the technology. These models are more energy efficient and better tailored to specific needs. As a result, SMEs can increase their efficiency and are able to develop innovative solutions. On the other hand, the study revealed a great need for AI knowledge transfer among SMEs, which the authors of the study intend to focus on 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 a way that best benefits us. The expansion of AI and Gen AI capabilities is essential to accelerate the digital transformation in Switzerland and ensure the country's competitiveness and innovative strength," says 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, author of the study and founder of the think tank W.I.R.E. "However, the benefits of AI for Switzerland will not only be unlocked by corporations and start-ups, but also by empowering 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, author of the study and founder of the think tank W.I.R.E. (Image: Beat Hürlimann)

9 theses on the long-term influence of AI

Based on the findings of the quantitative survey of organizations and the in-depth expert interviews, which focus on the medium-term influence of AI, nine theses on long-term and further developments can be formulated according to the authors of the study in conjunction with further findings from existing and new studies, forward-looking assessments from the in-depth interviews and the linking of arguments. These provide food for thought, inspiration, but also critical pointers that could be relevant for fundamental strategic planning in dealing with AI in the coming 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. The 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 a regulatory and social framework. The success of AI depends on the quality of AI-based services and the trust of people.
Rethinking Intellectual PropertyCompetition for quality-tested training data will increase. Copyright and data protection must be observed and a social debate must be held on the handling of intellectual property in connection with AI.
Small will be BeautifulIn addition to large AI models, smaller, specialized and open source-based models will gain in importance. Switzerland can play a key role here, especially for SMEs.
From Design to SelectionGenerative AI leads to an increase in automatically generated solutions. Humans are becoming selectors and curators. Switzerland should focus on useful AI solutions and not be distracted by the variety of options.
The Hidden Longtail of AIThere will be many small niche providers alongside large AI platforms. Switzerland can strengthen its niche economy by facilitating access to AI for SMEs and start-ups.
The Regulator's DilemmaAI can help with the implementation of regulations, but also harbors the risk of bureaucracy and a lack of transparency. Switzerland should strive for forward-looking and cautious regulation that enables both safety and innovation.
Reverse Societal ImpactThe use of AI can lead to a loss of skills and a changed understanding of quality. Switzerland should promote complementary skills such as critical thinking and creativity.
Bot-Bot NormalcyThe increase in bot-bot interactions increases efficiency, but also harbors the risk of decoupling and loss of reality. Switzerland should ensure that humans remain involved in important decisions.

The Study is based on a survey of Swiss companies and experts, supplemented by interviews and case studies. Quantitative data was supplemented by qualitative analyses to paint 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 from Swiss companies took part in the quantitative survey. In addition, 20 qualitative interviews were conducted with experts from various sectors and fields of knowledge in the direct and indirect environment of AI.