Artificial intelligence (AI) has long been seen as the biggest driver of innovation in companies. We spoke with our PRIMEPULSE CEO & Co-Founder Klaus Weinmann about the challenges and opportunities for Germany in the global AI competition.
Editor:
AI is THE tech topic that is currently having the greatest impact on the economy. Where does Germany stand in international comparison?
Klaus Weinmann:
AI is clearly linked to innovative strength. If you look at patent applications to the European Patent Office, for example, Germany ranks second. However, the majority of applications from Germany come from the established industrial sectors of automotive, chemicals, and mechanical engineering. Germany is lagging behind in the digital sector, so we need to improve in this area. On a positive note, we are quite well positioned in Germany when it comes to AI research. Munich is a success story in Europe thanks to its ecosystem of cutting-edge research, global companies, and tech startups. However, when it comes to the number of new AI startups, investments, or patents worldwide, the US and China are clearly in the lead.
Editor:
What advantage does the US have when it comes to AI?
Klaus Weinmann:
US companies are subject to fewer or no regulations in the AI competition. There is no law in the US equivalent to the European Union’s EU AI Act. Leading US tech companies are creating an environment with immense resources and a culture that promotes innovation and risk-taking. This mindset, or rather the open start-up mentality and access to extensive capital, promotes innovation and economic progress.
The problem in Germany is even more acute: our economy is no longer running smoothly. In the future, Germany’s flagship industries, such as automotive and mechanical engineering, will come under even more pressure from competition from China and the rest of the world. This makes it all the more important for research and industry to develop new products and applications. AI will be the major driver of innovation in this regard.
“We must play to our strengths and use AI as a driver of innovation for new products and applications.”
Klaus Weinmann, CEO & Co-Founder
Editor:
What does this mean for Germany as a nation of inventors? Will we become AI champions or slowly turn into an industrial museum?
Klaus Weinmann:
Germany must play to its strengths. We are lagging behind in basic AI. But Germany can become an AI champion in the development of specific technological applications, i.e., in areas where AI applications are used in industry. This is because German companies are often leaders in these areas, for example in mechanical engineering. The market and the opportunities are correspondingly large (we reported). I agree 100 percent with Rainer Koppitz that Germany can and must play a key role in robotics, which is essentially the fusion of mechanical engineering and AI, and thus has the potential to become a world leader.
But what is also absolutely essential is an open mindset and a more courageous approach to new technologies. German engineers are very good at perfecting existing technologies. This has worked well for many decades, but it will probably no longer be enough in the future in an ever-changing AI world.
Editorial team:
According to a recently published study by the digital association Bitkom, German companies want more AI “made in Germany.” This also points to huge opportunities for AI providers from Germany…
Klaus Weinmann:
Exactly. And in order to meet this demand, politicians must proceed with caution when implementing the EU AI Act and allow companies sufficient leeway. Otherwise, we will stifle any momentum for innovation, openness, and trust in the technology.
Editor:
Currently, investor enthusiasm for AI is still focused on the technology sector. Will this spread to other industries?
Klaus Weinmann:
Sooner or later, investors will also focus on companies that are using AI to expand their business models, tap into new customer groups, or become more efficient. To do this, companies need individual applications or solutions tailored to their needs. This will also create opportunities for companies whose products or services drive the AI transformation of their customers. With our PRIMEPULSE portfolio companies, we are focusing on precisely these developments.