Germany plans major AI catch-up

Germany says it wants to generate 10% of its economic output based on AI by 2030

Picture: 123RF
Picture: 123RF

Berlin — Germany wants to ramp up its use of artificial intelligence (AI) by the end of the decade to support Europe’s largest economy and compete on the world stage in key technologies, a document seen by Reuters showed on Tuesday.

The race to develop AI is intensifying, with China, the US and India emerging as front-runners, putting pressure on Germany and the EU more broadly to catch up.

“With an AI offensive, we want to generate 10% of our economic output based on AI by 2030 and make AI an important tool in central fields of research,” the German research ministry’s draft strategy said.

The strategy does not say what proportion of the German economy is currently supported by AI.

Keep German industry competitive

According to an OECD report from 2024 on Germany and AI, the country should leverage AI to meet its most pressing challenges, including the green transition, administrative and industrial efficiency and healthcare quality.

Economists have pushed for a rapid rollout to keep German industry competitive, with the IW institute reporting earlier this year that the country could increase productivity by an average 0.9% annually from the years 2025 until 2030, rising to 1.2% over the course of the 2030s.

So far this decade, that figure has stood at 0.4%.

The German cabinet is expected to pass the strategy before the end of the month, setting ambitious targets to catch up with the US and China on AI.

The document sets out targets for bids to construct high-capacity processing centres in the EU to be in operation by 2027. The government wants to co-ordinate its applications with industry, experts and federal states by the end of the year.

The European Commission has allocated €20bn in EU funding for the construction of AI “gigafactories”.

Error-corrected quantum computers

Under a coalition agreement finalised earlier this year, the German government aims to have at least one of the centres built in Germany, with Deutsche Telekom among the companies interested.

The German strategy also sets out goals to ramp up quantum computing technology, with two “error-corrected quantum computers” to be created by 2030 and made available to users, the document said.

It also sets out a plan to put Germany’s first research satellite for quantum communication into operation this year.

The strategy says that while Germany has seen early success in innovation, it is falling behind in the commercialisation of AI.

“This creates competitive disadvantages and dependencies,” the document said, adding that AI research in Germany must be linked to fields such as robotics, mechanical engineering, car manufacturing and the chemicals industry.” 

Reuters

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