Flexport CEO says German works councils are blocking AI at a European rival

What's the deal? Ryan Petersen, chief executive officer of logistics firm Flexport, said a large European logistics company told him it "can't use AI because of German workers councils." He shared the exchange on X on October 29, 2026.

What did he say? Petersen described raising the topic directly: "I asked a large logistics company in Europe how they were using AI and they told me they can't use AI because of German workers councils." He added that the answer surprised him: "I didn't ask them how they were cutting headcount. I asked them how they were using AI."

The context: German works councils, or Betriebsrat, hold co-determination rights over workplace technology that affects employees, and are often cited as a structural barrier to enterprise AI rollout in Europe. But those rights centre on consultation and safeguards, especially where AI could monitor worker performance — not a blanket legal ban.

Why it matters: The anecdote lands amid a wider debate over why Europe trails the US on AI adoption. Logistics is a live test case as firms rush to automate routine work.

What could go wrong? Petersen's framing reads as a complaint about implementation friction rather than evidence of a sector-wide block. Works councils can slow employee-facing tools and force negotiation, but they do not necessarily stop back-office uses that do not affect workers in those ways.

The signal: The gap between deployment timelines and labour participation is becoming a competitive issue. Flexport has promoted AI for customs auditing and shipment administration, while DHL said more than 700 AI and robotics projects went live in the first half of 2026 — a contrast that underscores how adoption speed, not capability alone, may separate logistics players.

Read more: Ryan Petersen on X

Image credit: Generated with Gemini