Fraunhofer & Partner: Digitalization of the skilled trades

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Digitization of the craft 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 trades sector, with around one million small and medium-sized enterprises and approximately 5.5 million employees, is the backbone of the German economy.¹ Despite this, the level of digitalization within the trades industry remains very low. However, process optimization through simple AI solutions like chatbots and augmented reality offers enormous value creation potential, both on a corporate and macroeconomic level. This research project evaluates scalable use cases, implements them, and develops an AI ecosystem tailored to the specific needs of the skilled trades industry.

2. Challenge

The technological maturity of artificial intelligence and augmented reality, in terms of technical feasibility, has now reached nearly 100%. The challenge lies in establishing these technological solutions as a service and a sustainable business model under a platform-based approach. A key application in this research project, for instance, involves scanning type plates on heating systems and building a database that provides technicians with self-help information via AR glasses or smartphones. Manufacturer-specific siloed solutions are only of limited use here, as repair work often involves diverse and sometimes unfamiliar systems. Therefore, the development of a centralized, cross-manufacturer knowledge database that can be utilized by many user companies is essential. The focus is not only on technological implementation but also on designing a collaborative ecosystem where costs and benefits are distributed to create added value.

3. Implementation

Through collaboration with electrical, painting, and plumbing/heating/installation companies, the work processes and information needs of both technicians and customers were thoroughly analyzed, compared, and prioritized for potential AI support. Kauz.ai supports domain-specific knowledge management via its aiStudio and provides AI-powered assistants as user interfaces for targeted information delivery. ODAV, as the leading technology partner for German skilled trades companies, centrally hosts the AI solutions, ensuring that user companies do not need to handle technical maintenance themselves.

4. Outcome

All user companies in the Minerva project were equipped with simple digital assistants within a short time frame. These ranged from product consultation tools integrated into the website of a painting business to various tools for independently optimizing energy procurement and the related necessary electrical installations. Further stages of process digitalization are under development, always with the goal of enabling other skilled trades businesses to benefit from these solutions as well.

5. Outlook

The research project has a three-year timeline with the objective of transforming its practice-oriented research into concrete market offerings for various trades. A key focus is fostering a digital mindset within the trades sector. For businesses ready to embrace change, the Minerva project team offers tailored solutions, which will be maintained and expanded upon by the commercial project partners in the long term. The value of rapidly adopting AI in the skilled trades sector is immense, spanning from up- and cross-selling potential through 24/7 availability, cost savings via reduced travel times, to addressing the labor shortage by successfully integrating migrants with the help of multilingual AI assistants.