Fraunhofer & Partner: Digitalization of the skilled trades

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The Minerva research project, led by the Fraunhofer Institute for Material Flow and Logistics, is working with complementary technology partners such as ODAV, the University of Duisburg Essen, Kauz.ai and selected craft businesses to develop an ecosystem that will also enable small and medium-sized enterprises to benefit from artificial intelligence.

1. Initial Situation

The German craft industry, consisting of approximately one million small and medium-sized enterprises and around 5.5 million employees, is the backbone of the German economy. Despite this, the level of digitalization in the sector remains low. Simple AI solutions like chatbots and augmented reality (AR) offer significant potential for process optimization, with substantial value creation opportunities both at the company level and for the broader economy. This research project evaluates scalable use cases, implements them, and develops an AI ecosystem tailored to the specific needs of the craft industry.

2. Challenge

While the technological maturity of artificial intelligence and augmented reality in terms of feasibility is nearly 100%, the challenge lies in establishing these technological solutions as a service-based platform and a sustainable business model. One key application in the research project is the scanning of nameplates on heating systems and building a database that provides information to craftsmen via their AR glasses or smartphones for self-help. Manufacturer-specific isolated solutions are of limited use, as repair work is often needed on various unknown systems. Therefore, developing a central, cross-provider knowledge database that can be utilized by many companies is essential. This involves not only technological implementation but also the creation of a collaborative ecosystem where costs and benefits can be shared productively.

3. Implementation

Through collaboration with an electrical, painting, and heating and plumbing company, the work processes and information needs of craftsmen and customers were carefully recorded, compared, and prioritized for potential AI support. Kauz.ai, with its aiStudio, assists in domain-specific knowledge management and provides AI assistants to deliver targeted information. ODAV, a leading technology partner for German craft businesses, centrally hosts the AI solutions, so no technical maintenance is required at the user companies.

4. Outcome

All companies participating in the Minerva project were quickly equipped with simple digital assistants, such as product consultation integrated into the painting company's website or tools for independently optimizing energy procurement and related electrical installations. Further stages of process digitalization are being developed, with a focus on ensuring other craft businesses can benefit from these solutions.

5. Outlook

The research project has a duration of three years, with the goal of establishing practical research for various trades as a concrete market offering. A key focus is promoting a digital mindset within the craft industry. For companies ready for change, the Minerva project group provides appropriate solutions, which will be sustained long-term by commercial project partners. The potential of AI adoption in the craft sector is enormous, ranging from up- and cross-selling opportunities through 24/7 availability, cost savings by reducing travel times, to addressing the skilled labor shortage by successfully integrating migrants with the help of multilingual AI assistants.