Germany Warns the Window to Catch Up in AI Is Closing Fast

The German government believes the coming year and a half will determine whether Germany stays in the global AI race. According to the final report of its AI taskforce, the country risks falling steadily further behind the leading AI hubs, the United States and China, despite a strong starting position, particularly in research.

"The window to narrow this gap is closing soon," the document states. The next twelve to eighteen months are therefore decisive for setting the course. The report is due to be presented at the government's Digital Summit in Berlin.

Targets for 2030

The paper sets out a series of goals. By 2030, at least 80 percent of large companies and 55 percent of small and medium-sized businesses should use AI. The number of AI startups is meant to triple, and more than 10 percent of economic output should be AI-based. In addition, 90 percent of federal agencies should use at least one AI application for core tasks.

The plans also aim to strengthen alternatives to the large AI models, with closer cooperation with countries such as France and Canada.

A "nation of AI" by 2030

The taskforce, led by the Federal Ministry for Digital Affairs, was set up in the summer by the government's National Security Council. Its stated aim is to make Germany an "AI nation" by 2030, a phrase already used in the coalition agreement between the CDU/CSU and the SPD. Talent, capital, research, computing capacity and entrepreneurial initiative are meant to come together in Germany to turn innovation into growth, prosperity, security and democratic resilience.

The report also warns of the consequences of inaction: anyone who fails to build technological foundations, talent, infrastructure and applications in time will in the long run depend on decisions made by others.

What matters now is whether the targets are matched by concrete funding and measures after the summit in Berlin.