Key Developments in the Automotive Industry:
The automotive industry is experiencing a major transformation, shifting from combustion engines to battery electric cars. Software plays a crucial role in defining vehicles and interfaces, integrating cars into customers’ digital ecosystems.

Autonomous Driving as a Game Changer:
Autonomous driving presents significant opportunities to revolutionize customer excitement and tap into new profit streams and business models. AI is extensively used in various aspects of the Volkswagen Group, including quality control and production processes.

Enhancing Customer Experience through AI:
AI enables a focus on customer satisfaction, improving the digital experience and providing a superior customer journey. Autonomous driving frees up time spent in cars, transforming the interior into a living room-like space with new opportunities for customer engagement.

Data Processing and Storage Strategies:
Data processing for AI requires a combination of resources, including cloud, chips, and other technologies. Effective data utilization is crucial, as data itself has limited value without human intelligence applied to concepts and ideas.

Ownership of Operating Systems:
Volkswagen aims to retain ownership and control of the operating system in autonomous vehicles. The valuable time spent in cars during autonomous driving presents opportunities for profit generation.

Querion Bank’s Perspective on AI:
For Querion Bank, AI represents a significant transformative force in the financial industry. AI enables the bank to enhance user interfaces, elevate customer experiences, and promote inclusive wealth development. Querion invests in natural language models to improve accessibility for individuals with visual impairments or those who prefer conversational interactions.

AI’s Role in Asset Management:
Current limitations prevent AI from accurately forecasting stock market behavior. However, AI serves as a valuable driver for analytics, process efficiency, and digital marketing.

Evolution of Wealth Management Approaches:
The financial industry traditionally relied on managed or automated investment methods: Managed: Human professionals make investment decisions. Automated: Passive exchange-traded funds (ETFs) track market indices. Querion believes that a combination of both approaches is necessary: ETFs provide technological efficiency in selecting investments and managing indices. Robo advisors, guided by human expertise, assemble investment portfolios using ETFs. Smaller companies continue to explore AI for predictive capabilities, but challenges remain.

AI in Client Onboarding:
Querion utilizes AI-powered rule-based engines for client onboarding processes. This approach streamlines regulatory compliance, data collection, and risk profiling.

American Just Do It Mentality in AI Implementation:
Martin Daud emphasizes the importance of embracing the “just do it” mentality in AI projects. Traditional IT projects follow structured milestones and budgets, but AI projects require a more flexible approach. Unpredictability necessitates open management and a focus on short-term goals rather than long-term outcomes. The “just do it” principle allows Querion to navigate the uncertainties of AI development effectively.

McDonald’s Digital Transformation:
Christoph Kase, President and Managing Director of McDonald’s Germany, highlights the company’s successful modernization efforts, including the introduction of self-service kiosks and mobile apps. These digital initiatives have significantly streamlined operations, allowing employees to focus on providing personalized customer service and improving the overall dining experience. McDonald’s plans to further enhance its digital capabilities by implementing Internet of Things (IoT) technology, optimizing operations, and exploring artificial intelligence (AI) to improve efficiency and customer satisfaction.

Human-Centric Approach to Service:
Kase emphasizes the importance of human interaction in the customer experience, stating that machines will not replace the personal touch provided by employees. He recalls an incident where an employee went above and beyond to assist a young girl who spilled her Coke, demonstrating the value of human empathy and care in building customer loyalty. Kase believes that employees play a crucial role in maintaining a secure and welcoming environment for customers.

Philip Morris’ Transformation and Focus on Harm Reduction:
Thorsten Albig, from Philip Morris International, addresses the company’s commitment to harm reduction through the development of innovative nicotine consumption methods. He acknowledges that traditional cigarettes pose health risks due to the burning process and the presence of carcinogenic substances. Philip Morris has invested 11 billion euros in R&D to create new products like iQOS, which heats tobacco instead of burning it, significantly reducing the emission of harmful chemicals. Albig emphasizes the company’s desire to provide adult smokers with a safer alternative to traditional cigarettes, reducing the prevalence of smoking-related diseases.

Innovation and Societal Transformation:
Albig stresses the need for both innovative companies and innovative societies to address societal challenges. He acknowledges that the tobacco industry has a negative image due to its past actions, but emphasizes that Philip Morris has undergone a transformation, focusing on developing safer products and promoting harm reduction. Albig highlights the success of Snooze pouches in Sweden, where smoking rates have declined significantly due to the availability of alternative nicotine products. He emphasizes that the company’s goal is to create a smoke-free society through innovation and collaboration with regulatory bodies and society at large.

Use of AI in Construction:
AI plays a crucial role in monitoring and providing early warnings in water systems. Uponor Corporation, led by Michael Rautakus, focuses on smart cities and smart buildings.

Challenges in Building Construction:
The construction industry faces inefficiencies in building processes, leading to extended timelines and high costs. AI’s introduction aims to enhance productivity and revolutionize the construction sector.

Opportunities for Energy Efficiency:
Uponor’s intelligent system enables significant energy savings during building operations. Buildings can reduce energy consumption by 20-30% through AI-driven operational adjustments.

Advantages of Predictive Measures:
AI can consider factors like weather forecasts and occupancy patterns to optimize building operations. Predictive measures allow for more efficient energy usage, reducing energy consumption.

Successful Case Study:
Uponor’s project in Frankfurt, Germany, highlights the financial benefits of energy savings. Investors invested in the system, realizing returns from the savings generated.

Environmental Impact and Sustainability:
The construction industry contributes significantly to global carbon emissions. Uponor’s commitment to digitalization aims to address this issue.

Innovation in the Construction Industry:
The construction industry often goes unnoticed despite ongoing advancements. Rautakus emphasizes the potential for industry contributions and innovation.

Digitization in Construction:
According to economists’ assessments, construction ranked lowest in terms of digitization. Uponor incorporates expertise from more digitized industries to drive innovation.

Role of Skilled Labor:
Despite automation, construction still requires high-quality labor. Appreciation for skilled manual work will likely increase in the industry.

AI’s Role at SAP:
SAP, with 400,000 customers and 300 million users, is leveraging AI to enhance customer experiences. The company has introduced a co-pilot named Jule, which can respond to human language requests, process transactions, and provide supplier recommendations based on cost and quality. By infusing AI into business processes, SAP aims to increase productivity and help organizations decarbonize their supply chains while maintaining profitability.

Challenges and Opportunities:
Many companies still face data silos and data quality issues. AI adoption in the B2B space requires a strong foundation in the cloud, involving data preparation and cleansing. SAP is working with Microsoft to build this stable foundation, enabling customers to use AI effectively.

Integration with Customers:
SAP recognizes the need to educate customers on implementing new technologies. The company collaborates with customers to co-innovate solutions, such as green ledgers for carbon data collection and ESG data integration with financial and supplier data.

Rapid Adoption of AI:
Satya Nadella emphasizes that the diffusion rate of AI technology is the real change. Cloud computing infrastructure has enabled the necessary compute power for AI development. The adoption of cloud-based services is facilitating the deployment of AI co-pilots by businesses.

SAP’s Journey to the Cloud:
Christian Klein initiated a transformation to move SAP from on-premise to cloud. The goal was to harmonize data models, infuse AI, and provide customers with the latest releases. This required addressing commercial, service, and tooling aspects to support customers throughout the innovation cycle.

The New Paradigm:
Satya Nadella discusses the two crucial transitions that Microsoft and SAP underwent: a shift in technology and a change in business model. Adapting to new technology is relatively easier compared to changing the business model.

The Gut-Wrenching Business Model Shift:
The business model shift requires a fundamental change in pricing, marketing strategies, customer expectations, and more. This is a challenging but necessary change for organizations to survive in the new era.

Increasing Returns from Cloud Adoption:
Nadella emphasizes the increasing returns from the cloud transition, enabling companies to serve more customers globally. The cloud eliminates the need for capital investment in on-premises data centers, making IT services more accessible. The consumption of cloud services has increased significantly due to its benefits and technical lock-in.

Competitive Landscape in Hyperscalers:
Nadella acknowledges the healthy competition among hyperscalers, requiring them to be competitive at every layer of the tech stack. Integration with other layers must provide real value to customers for a successful partnership.

Tech’s Impact on Real-Life Applications:
Nadella emphasizes the importance of technology for enhancing real-life experiences, especially in the restaurant industry. He discusses the use of mobile order and pay, kiosks, and voice recognition systems to improve customer experience and employee efficiency.

The Breakthrough of Natural User Interface:
Nadella highlights the breakthrough of AI in enabling more natural user interfaces. Multi-modal, multi-turn, and multi-domain conversations are now possible, making interactions more intuitive and conversational. This natural user interface can be a key differentiator for organizations to enhance their services.

Data Security in AI:
The increasing use of AI and cloud computing in the financial industry raises concerns about client data security. Regulations have not kept pace with technology advancements, leading to challenges in cloud-based data management. Call for tech CEOs to prioritize robust data security measures to enable seamless work with client data in the cloud.

Collaboration and Value Chain:
Microsoft should focus on developing best-in-class tools rather than applications, allowing companies to lead in using technology and creating customer-centric solutions. Respecting the value chain ensures a competitive advantage and differentiation for companies.

Addressing Anti-Innovation Sentiment:
Politicians in Europe, particularly in Germany, face anti-innovative sentiments from extreme political views. The rapid pace of technological change creates anxiety among the population, requiring clear explanations of the benefits and value of new technologies. Emphasizing the human-centered approach and inclusive progress helps alleviate fears and counter anti-innovation sentiments.

Building Trust in Autonomous Systems:
Trust is essential for the adoption of autonomous systems, such as self-driving cars. Consumers need to trust the technology and feel safe using it without compromising their safety or privacy. Collaboration and co-development between companies foster trust, enabling successful partnerships and advancements.

Smart Homes and Sustainability:
The construction industry, responsible for 40% of global CO2 emissions, presents immense potential for smart home solutions. Opportunities exist for sector-specific AI applications to address sustainability challenges. Collaboration between tech companies and the construction industry can drive innovation and transform the sector.

Satya Nadella’s Perspective on Data Security in Europe:
Satya Nadella emphasizes the importance of data security for European customers. He highlights Microsoft’s efforts in data boundary compliance, sovereign clouds, and other measures to facilitate cloud adoption in Europe.

Trust in Technology and Business Models:
Nadella stresses the significance of trust in technology and business models for successful cooperation. He believes that business models should be aligned, where Microsoft’s success is directly tied to the customer’s success.

AI and the Future of Sustainability:
Nadella identifies the smart home as the next big thing and discusses the potential of sensors and data simulation for sustainable design. He sees this as a significant driver of productivity in the construction industry.

Christian’s View on Data Privacy Regulations:
Christian expresses frustration over the fragmented data privacy standards in Germany and the European Union, leading to challenges for cloud adoption. He advocates for more unified standards within the European Union to create a more favorable environment for technology and business.

Real-World Examples of AI’s Value:
Christian shares examples of McDonald’s and Volkswagen using Microsoft’s cloud solutions to improve employee experience and demand management. He emphasizes the importance of demonstrating the value of AI to gain customer acceptance.

AI as a Significant Innovation:
Christoph Kase poses the question of whether AI is as important as electricity, sparking a discussion among the panelists. Satya Nadella compares AI’s significance to that of the internet, highlighting its transformative potential. Hildegard agrees, emphasizing the opportunities AI offers when managed and controlled with data security and trust.