In a recent report, KfW Research has analyzed Germany's position in the development and application of artificial intelligence (AI). There is a need for increased efforts to secure and expand Germany's competitiveness in the field of AI.
The author of the KfW study, Dr. Volker Zimmermann, attests that Germany has strong academic research in the field of AI, the quality of which is internationally recognized. In addition, German companies use AI intensively and are at the forefront in a European comparison. Nevertheless, there are clear weaknesses in the commercial implementation and patenting of AI technologies. Germany's share of global AI patents is only 6%, far behind leading countries such as China and the USA.
Zimmermann emphasizes the potential of AI to increase productivity, overcome demographic challenges and achieve climate goals. Economic policy measures should aim to promote the broad use of AI and establish Germany as a provider of technologically high-quality AI solutions.
Discordant balance
Germany's performance in artificial intelligence is mixed. AI is not one of the country's strong future technologies, which is mainly due to the comparatively low number of patent applications. This weakness has worsened in recent years and is also reflected in the negative foreign trade balance for AI products.
The high quality of academic research in the field of AI in Germany is a positive point.
Germany is also behind the leading countries in terms of the number of scientific publications on artificial intelligence and the gap to the leading countries has also widened over time in terms of publications. However, the quality of the publications is rated as high. German science is strongly networked internationally and is home to top international researchers. Several German institutions are among the top 50 scientific institutions for artificial intelligence, such as the TU Darmstadt, the TU Munich, the KIT in Karlsruhe, the universities of Bonn and Nuremberg, and the Max Planck Institutes in Saarbrücken and Tübingen. Foreign AI talent, especially from Asia, is often drawn to German universities as students and doctoral students.
Diverse potential
AI offers numerous opportunities for Germany. In addition to the general increase in productivity and economic growth, AI can address specific challenges facing the country. These include integrating information technologies into traditional industries, coping with demographic changes and achieving climate targets.
In view of this potential, it seems worthwhile to strengthen Germany's position in the development and use of AI. AI can make an important contribution to the country's economic development.
Strategies for improvement
The report recommends a two-pronged strategy to improve Germany's position: In the short term, AI applications should be widely implemented in companies in order to increase digital skills and maturity. In the long term, research must be intensified and the development of a competitive AI industry must be promoted in order to keep up with the leading countries.
A key starting point for accelerating AI application is the removal of barriers to dissemination. Digital skills are a crucial factor for successful digitalization. In addition, companies must reach a higher level of digitization in order to be able to use AI profitably. Important measures include removing financing barriers, raising awareness of the strategic importance of digitization and expanding the digital infrastructure.
In the long term, intensifying research, building an AI industry, improving computing infrastructure and access to training data are crucial to establishing Germany as an international provider of high-quality AI solutions. In addition, it is important to strengthen trust in German and European AI solutions.