A new report by the Organisation for Economic Co-operation and Development (OECD) praises Germany as a global leader in artificial intelligence, citing the country’s strategic planning, research landscape, and integration with environmental sustainability initiatives.
Germany Recognised as Global Leader in Artificial Intelligence by OECD Report
BERLIN, June 11, 2024 — A new report by the Organisation for Economic Co-operation and Development (OECD) has lauded Germany as a global leader in artificial intelligence (AI), while also identifying areas for further growth and development.
The OECD’s “Artificial Intelligence Review of Germany” highlights the country’s significant strides in the AI sector, attributing its leadership to early strategic planning and robust implementation. Germany, the largest economy in Europe, was among the first nations to establish a national AI strategy in 2018, setting the stage for its current prominence.
“Initiatives implemented as part of the national AI strategy laid the foundation for Germany to emerge as a global leader in AI research,” the report stated.
Key areas praised in the report include Germany’s ability to attract skilled AI professionals and its integration of AI with climate protection efforts. The country’s unique research landscape was particularly noted, indicating that Germany is well-positioned to lead in both AI and environmental sustainability. The report stated, “Germany is poised to be a global leader in AI and environmental sustainability, given its well-funded initiatives, world-leading researchers, and innovative companies. AI can help accelerate decarbonisation in energy, transport, industry, and agriculture.”
Moreover, the study highlighted that there is an increasing interest and usage of AI within German companies, with significant potential for further deployment in sectors such as public services and healthcare.
Supporting the country’s AI ecosystem, there are more than 40 national and regional state programmes assisting AI firms, especially small and medium-sized enterprises (SMEs). Based on information from the German Foreign Office, it is noted that the national government has committed to investing at least €1.6 billion in AI by 2025. Market data from Statista projects an average annual growth rate of 28.64% for the sector in the upcoming years.
Robert Hermann, CEO of Germany Trade & Invest, commented on the implications of the OECD report: “The OECD report confirms that Germany is going to be at the heart of the further global AI development, making the country an attractive business location for companies working in the field. It’s no accident that AI companies such as Aleph Alpha, DeepL, and Helsing were among the German-based unicorns minted in 2023.”
Hermann added that Germany’s rigorous data privacy standards make it a favourable environment for international AI firms looking to ensure their solutions comply with global standards. “At the same time, the study also makes it clear that there is plenty of room in the sector for international companies to come to Germany and achieve success,” he said.
Germany Trade & Invest, the agency behind promoting international business within Germany, is a government-owned entity under the Ministry for Economic Affairs and Climate Action. It supports international companies seeking to establish a presence in Germany, as well as German businesses looking to expand overseas.
The report from OECD underscores Germany’s significant potential and current achievements in the AI arena, highlighting the country’s strategic foresight and commitment to innovation. However, it also calls for ongoing efforts to harness this potential fully, particularly in expanding AI applications across various sectors and attracting more international investments. As Germany continues to navigate the rapidly evolving landscape of AI, the country’s balanced approach towards innovation and regulation could serve as a model for others striving to achieve similar success.
