GTIPA Perspectives: Making AI Policy to Drive Innovation

Furthermore, each of the 16 German states has introduced its own AI policy, with some municipalities also implementing policies at a local level. This monograph will focus specifically on examples of AI policies at the federal level. Germany has taken some useful steps to boost AI implementation and competitiveness but needs to keep pace to counter the massive investment in AI being made in other areas around the world. 

AI Strategy and High-Tech Agenda: The Backbone of Policy 

The German federal government launched its initial AI strategy in 2018, subsequently updated in 2020, which remains current today.145 Under the slogan “AI Made In Germany,” the strategy aims to position the country as a global leader in AI research, development, and implementation. This encompasses not only technological leadership but also adherence to European AI values: responsible and human-centered AI forms the core of the strategy, aspiring to serve as its defining quality label. To achieve these ambitions, the strategy outlines 12 key fields of action: strengthening R&D, fostering innovation competitions and European innovation hubs, facilitating AI transfer to businesses, promoting start-ups, managing labor market transformation, utilizing AI in public administration, enhancing data availability, adapting the regulatory framework, developing standards, fostering national and international networking, and increasing societal engagement. In 2024, the OECD recognized Germany's AI strategy as visionary and globally leading, though it also noted that the rapid pace of AI development somewhat limited its overall success.146 Nevertheless, this strategy provides a crucial foundation for numerous AI policies and initiatives in Germany, which are linked to one or more of these action fields and are regularly evaluated for their effectiveness in relation to the strategy’s goals. 

The coalition agreement among the current governing parties (CDU – Christian Democratic Union, CSU – Christian Social Union, SPD – Social Democratic Party) builds on the AI strategy’s ideas, GLOBAL TRADE AND INNOVATION POLICY ALLIANCE PAGE 55 specifically detailing objectives for value creation in businesses and greater efficiency in public administration through AI.147 AI is identified as one of several key technologies vital for future innovation, aligning with Germany's high-tech agenda.148 This agenda integrates AI into Germany's research and innovation policy, underlining its broad importance for innovation and its far-reaching influence across various federal policy areas. Whilst no further update to the AI strategy is planned owing to time constraints, the high-tech agenda is accompanied by a roadmap with detailed milestones starting in 2026.149 Its general AI-related goal is to make Germany and its European partners the world-leading location for AI and the flagship market for industrial AI and AI-based robotics. The federal government lists 16 funding opportunities in this lead technology alone, offering funding for a range of projects on AI-related topics.150 The funding of the AI Service Centers (see next section) is among them.