Rufus Okoro
Germany is currently reportedly intensifying 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.
The race to develop AI is globally increasing, with China, the United States (US) and India emerging as frontrunners, putting pressure on Germany and the European Union (EU).
"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," said the German Research Ministry's draft strategy.
However, the strategy did not disclose what proportion of the German economy is currently supported by AI.
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.
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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%.
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 coordinate its applications with industry, experts and federal states by the end of the year.
It's noteworthy that the European Commission has already 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 centres built in Germany, with Deutsche Telekom (DTEGn.DE), opens new tab 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 stated.
It equally sets out a plan to put Germany's first research satellite for quantum communication into operation this year.
The strategy said that while Germany had seen early success in innovation, it was falling behind in the commercialization of AI.
"This creates competitive disadvantages and dependencies," the document further expressed, adding that AI research in Germany must be linked to fields such as robotics, mechanical engineering, car manufacturing and the chemicals industry."
