Artificial Intelligence (AI) is reshaping how industries work, innovate, and grow. But what does that look like in practice in Luxembourg? A survey by FEDIL, the federation of Luxembourg industry, Luxembourg Digital Innovation Hub (L-DIH) and Luxinnovation, paints a picture of GenAI optimism as well as challenges.
Businesses Are On Board—With Eyes Wide Open
Across the board, companies believe AI will make a meaningful difference—especially when it comes to streamlining operations and cutting costs. This is particularly true in manufacturing, where 8 out of 10 firms expect to see concrete improvements.
Even more encouraging: 63% of the surveyed companies are already experimenting with or implementing AI in some form. About a quarter have projects in the pipeline or live, while another 23% are testing ideas through proof-of-concepts.
Unsurprisingly, ICT companies are leading the charge, with higher levels of AI maturity. Meanwhile, more traditional sectors like manufacturing are showing strong interest but are taking a more measured, cautious approach. That said, the desire to adapt is clearly there.
GenAI: More Than a Buzzword
If 2023 was the year everyone started talking about Generative AI, 2024 is the year Luxembourgish companies started using it in earnest. According to the survey, GenAI is being viewed as a real opportunity—not just another trend.
Companies are already integrating GenAI into day-to-day work: content creation, customer service, internal chatbots—the use cases are practical and growing. Tools like ChatGPT and Microsoft Copilot are quickly becoming part of the modern business toolkit, helping teams get more done, faster.
Interestingly, employees aren’t waiting around for official rollouts—many are already using public GenAI platforms for work, often without formal guidance. This shows how quickly these tools are being adopted, and it also underlines a key issue: the need for clear policies and training.
The Tough Stuff: Data, Skills, and Strategy
No digital transformation comes without growing pains. The most commonly cited roadblock? Reliable data. In industries like construction, transport, and manufacturing, gathering clean, usable data is easier said than done. Without it, AI systems have little to work with.
Then there’s the skills gap. Many companies simply don’t have enough in-house knowledge to identify the best AI use cases—let alone implement them. Digital maturity varies widely, and that uneven playing field is slowing things down.
And while half of the companies surveyed have already introduced AI governance policies—a positive step—many others are still figuring out where to start. Data privacy, security, and compliance aren’t optional when it comes to AI. The faster companies can put the right frameworks in place, the better.
There’s also the question of data sovereignty. Most companies are relying on cloud-based GenAI platforms hosted outside Luxembourg. Only a few are keeping things local—an issue that could become more pressing as regulatory expectations tighten.
Building an AI-Ready Ecosystem
The message from the FEDIL survey is clear: Luxembourg’s industrial players are ready to embrace AI, but they’ll need more support to do it right.
That means upskilling the workforce through targeted training programmes: raising awareness of what AI can realistically deliver; creating stronger local infrastructure to host AI tools securely and sharing success stories to inspire confidence and guide adoption.
Luxembourg has a real opportunity to become a leader in AI—not just in terms of technology, but in how it’s deployed responsibly and effectively in industry. But this will require a collective effort across companies, government, and innovation partners.
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