The status quo of AI in Germany: a sprouting landscape

AI is certainly the most important current buzzword. This is understandable because AI holds enormous potential for process improvement and the design of new services and business models. Especially in the German economy, which is characterized by the manufacturing and automotive industries, the capabilities of AI for process automation, quality assurance, supply chain optimization, and autonomous driving are enormous. However, other industries can also benefit from technical improvements in machine learning, image and speech recognition, and automation.

German companies have recognized this and are very interested in the use of AI – across all industries and horizontal fields of application. The willingness to invest is increasing, as is the number of AI projects. It is certainly helpful that the large hyperscalers offer local data center resources and have facilitated the path to cloud computing for previously skeptical companies. Because one thing is clear: in most cases, AI without cloud does not work because the (real-time) analysis of large amounts of data requires enormous capacities of computing power and storage space.

However, a look at the AI start-up scene in Germany also shows that there is some catching up to do. There is a lively AI start-up scene concentrated primarily in the cities of Berlin and Munich, but often there is a lack of capital to accelerate development and corporate growth. This is particularly unfavorable for medium-sized companies, which are so important in Germany. They have to survive in international competition above all with innovations and therefore need fast, uncomplicated, and local access to AI know-how. It would therefore be conceivable to set up a national fund to promote local AI start-ups and close cooperation with German SMEs.

In our latest SITSI® report “The status quo of AI in Germany: a sprouting landscape”, we have compiled some application cases in segments that are important for the German economy. The examples show that there are some activities, but most of them are still very selective. AI is not yet widely used in Germany. This should change in the coming years so that the national economy does not lose touch with an important topic of the future. We will stay tuned.