Optimizing machines by ear, intuitively knowing the right things to do to get equipment running again or knowing what the problem is even before an analysis: The experiential knowledge of longtime employees, the “old hands”, is indispensable for companies. Especially in industry where the focus is on the maintenance of complex plant systems, this knowledge can deliver a decisive competitive edge by predictively preventing or rapidly solving problems.

Experienced specialists have a deep understanding of complex systems. They often know intuitively what the problem is when equipment sounds “funny” or immediately identify potential causes of inefficient machine performance. Yet this implicit knowledge— years of unconscious experience hard to put into words—frequently remains undocumented and consequently virtually inaccessible for others.

Demographic change and the skilled labor shortage are making it more necessary to retain experiential knowledge systematically and make it accessible for all of a company’s employees. Traditional approaches often reach their limits—whether that is because of limited resources, lack of time or insufficient methodological embeddedness in the day-to-day company routine.

Narrative methods, such as storytelling and triad discussions, provide a solution here. Sharing anecdotes and personal experiences makes complex relationship tangible. Studies prove that these approaches encourage the understanding and use of knowledge in similar situations. Yet broad implementation of these approaches in practice requires innovative technologies that facilitate and integrate the process in the day-to-day work routine.

The research project AI-Storytelling: AI Knowledge Transfer to Combat the Skilled Labor Shortage (2025-2028) is following a new path to collect and share experiential knowledge systematically as it is produced. The consortium of industrial companies and research organizations, including the Fraunhofer Institute for Factory Operation and Automation IFF, is developing AI solutions that efficiently harness the capability of narrative methods. The goal is to collect, document and make experiential knowledge accessible right in the work process, especially for small and midsize businesses (SMBs) that are being hit particularly hard by the skilled labor shortage.

“We have long been researching how to utilize the strength of narrative methods while minimizing the additional labor that has prevented their broad use. We are again taking another step forward with the new research project,” explains Tina Haase, head of the Department of Human-Centered Systems at Fraunhofer IFF.

The research is focusing on educational approaches that use BaSyx and KIWAI software platforms to combine storytelling elements with advanced AI technology, augmented reality (AR) and digital twins (AAS). This combination of technology and narration expedites knowledge transfer, increases employees’ efficiency and boosts companies’ competitiveness. “AI can act as a catalyst here and ensure that, rather than getting lost, experiential knowledge is used as a strategic advantage,” says Prof. Haase.

The skilled labor shortage is one of the most pressing challenges of the modern world of work. With its combination of AI and innovative educational approaches, the AI Storytelling project is creating a groundbreaking way to manage knowledge in industry. It is making a crucial contribution to retaining knowledge in times of demographic change and to boosting companies’ competitiveness.

The research project is being funded by the Federal Ministry for Economic Affairs and Climate Action as part of its Development of Digital Technologies program.