Machine builders want young engineers with AI expertise - Germany’s Engineering Crisis: AI Skills Shortage Forces Firms to Act
German companies are facing a growing skills gap in engineering, particularly in artificial intelligence. A recent survey reveals that 71% of firms struggle to find qualified candidates, while AI expertise is now seen as essential for mechanical engineers. The issue has prompted some corporations to relocate research and development operations overseas in search of better-trained talent.
The demand for AI skills among mechanical engineers is rising sharply. According to the survey, 86% of companies view AI proficiency as important for new hires. Yet, nearly half (49%) criticise university programmes for failing to prepare students adequately in this area. Only 23% of firms rate current AI training as good, leaving a significant gap between industry needs and academic output.
One institution addressing this shortfall is the Karlsruhe University of Applied Sciences (HKA). Its Master’s in Robotics and Artificial Intelligence in Production—part of the Mechanical Engineering programme—has earned top rankings in the CHE Masterranking 2025/26. The course excels in student satisfaction, practical relevance, and research focus, directly responding to industry concerns about inadequate AI preparation. Despite hiring challenges, most companies plan to keep or grow their engineering teams. Larger firms anticipate stable (56%) or increased (18%) staffing levels, while smaller businesses aim to maintain (77%) or expand (17%) their engineering roles. However, the persistent skills shortage continues to push some major corporations toward shifting R&D operations abroad.
The mismatch between industry demands and university training is pushing firms to seek solutions, from overseas recruitment to specialised programmes like HKA’s AI-focused Master’s. With AI skills now central to mechanical engineering roles, companies and educators must align more closely to prevent further talent shortages. The rankings success of HKA’s programme suggests a model for bridging this gap.
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