Germany is investing in a strategy to boost the use and development of AI in the country. The main objective is to improve and optimize internal processes in areas of importance for the country’s economic and social growth, such as industry, science, and services, in addition to entering the race with emerging countries in this area, led by the United States, China, and India.
Ambitious goal: 10% of GDP driven by AI
Germany wants to ramp up its use of artificial intelligence 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 United States and India emerging as frontrunners, putting pressure on Germany and the European Union 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.
Economic boost and sectoral impact
Achieving this goal will require significant investments in digital infrastructure, professional training, and a cultural shift toward adopting new technologies in companies of all sizes. Integrating AI into sectors such as renewable energy and logistics is essential to increasing Germany’s competitiveness and internal technological independence.
Economists have pushed for a rapid roll-out 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%.
Infrastructure and innovation to accelerate progress
The German cabinet is expected to pass the strategy before the end of the month, setting ambitious targets to catch up with the United States and China on AI. The document sets out targets for bids to construct high-capacity processing centers in the European Union to be in operation by 2027. The government wants to coordinate its applications with industry, experts and federal states by the end of the year.
Efficient coordination between governments and companies or research centers will be extremely important to avoid delays that could jeopardize the goal of operating by 2027. Furthermore, authorities advocate that the geographic distribution of these centers be designed to expand access to AI processing capabilities for small and medium-sized companies.
The European Commission has allocated 20 billion euros ($23 billion) in EU funding for the construction of AI ‘gigafactories’. Under a coalition agreement finalized earlier this year, the German government aims to have at least one of the centers built in Germany, with Deutsche Telekom DTEGn.DE 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.
From research to commercial application
The strategy says that while Germany has seen early success in innovation, it is falling behind in the commercialization 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.”
To reverse this situation, the government aims to create mechanisms that bring research laboratories closer to industry demands, reducing the time between technological developments and their practical application. This integration will be crucial for Germany to transform its research potential into market solutions, with the goal of strengthening local production chains and reducing strategic vulnerabilities to competing technological powers.
GCN.com/Reuters