KI Federal Association promotes AI ecosystem in Germany and Europe
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“Germany has finally begun its AI catch-up. ”
Alex Dickmann and Alessandro Blank know the enormous potential that artificial intelligence offers for small and medium-sized companies. As project managers in the AI Federal Association, they are passionate about both content and legal issues and are pushing ahead with the implementation of AI in German SMEs. A conversation about speed, connectivity and framework conditions.
Artificial intelligence is currently establishing itself as a mainstream topic. Where does Germany stand in global AI competition?
Alex: Thanks to its strong industrial base and cutting-edge research, Germany has positioned itself well in many areas of AI. However, we lag behind other countries such as the USA or China when it comes to issues such as start-up financing and speed of implementation. We often fail to transfer our research to industry. In 2022, 20 times more was invested in AI start-ups in the USA than in Germany, and six times more in China.
Alessandro: We see another difficulty with spin-offs. Around three quarters of all scientific innovations are currently lost to society. Even though AI start-ups are an exception here — over 40 percent of all start-ups come from science — there is still massive potential for improvement so that scientific spin-offs can play a central role in the transfer between research innovations and innovative business models.
What are other countries doing better or differently?
Alessandro: Other countries are relying decisively on a targeted, government-sponsored AI strategy, thus creating a more favorable ecosystem for start-ups and innovation. We can learn from them how to create a favourable climate for AI innovation by better networking research, industry and politics.
Alex: But we can also see that the start-up strategy adopted by the federal government last year is already showing initial successes: In 2022, 41 new German AI start-ups were founded. That is 64% more than in 2021. And while investments in AI start-ups fell by 2% globally last year, they rose by 20% in Germany.
Alessandro: The bottom line is that Germany has finally begun its AI catch-up. However, in order to become internationally competitive, we have to push the gas pedal even harder than before.
Über den KI Bundesverband
Der Bundesverband der Unternehmen der Künstlichen Intelligenz in Deutschland e.V. vernetzt die innovativsten KI und Deep Tech Unternehmen mit der etablierten Wirtschaft und Politik und ist mit mehr als 400 KI-Unternehmen das größte KI-Netzwerk Deutschlands. Die Mitglieder des Bundesverbandes Künstliche Intelligenz setzen sich dafür ein, dass diese Technologie im Sinne europäischer und demokratischer Werte Anwendung findet und Europa digitale Souveränität erreicht. Dafür muss die Bundesrepublik Deutschland und die EU ein attraktiver KI-Standort für Unternehmerinnen und Unternehmer werden, in dem Risikobereitschaft gewürdigt wird und Innovationsgeist auf die besten Voraussetzungen trifft.
Companies should therefore accelerate more, but in which direction? And what do they get out of it in the end?
Alex: artificial intelligence revolutionizes how medium-sized companies and start-ups do business in Germany. It enables them to make processes more precise and efficient, to design innovative business models from scratch and to design customer interactions on an individual level.
“Artificial intelligence is revolutionizing how medium-sized companies and start-ups do business in Germany. ”
Do you have an example of that?
Alex: Let's take a look at the manufacturing industry, for example. With predictive maintenance, machine failures can be predicted and preventively remedied, reducing operating costs and increasing productivity. Although this example only scratches the surface of the potential of AI, it clearly shows how operating costs can be reduced and efficiency can be easily increased.
In which areas of AI can Germany and Europe take the lead again?
Alessandro: Germany and Europe have the potential to become leaders in ethical AI, AI in healthcare, and industrial automation. To achieve this, however, we need a clear political framework. This includes targeted funding for research and development, the creation of data pools for training purposes and regulations that both promote innovation and maintain ethical and data protection standards.
As mentioned above, Germany also has a leading position in the area of knowledge transfer. From a political perspective, it is now necessary to create framework conditions which, on the one hand, promote spin-offs from science, improve financing options for AI start-ups, but also promote targeted incentives for the implementation of AI in SMEs and industry.
Alex: For example, the Federal AI Association has successfully incorporated the so-called AI voucher into the federal government's start-up strategy. The AI vouchers would enable SMEs to receive funding for an AI project as long as they commission a German company to do so. This makes it possible to reduce the financial risk for SMEs, expand the understanding of AI-based solutions in SMEs and promote “AI Made in Germany.”
“This allows 'AI Made in Germany” to be promoted. ”
It is part of your day-to-day business to recognize the challenges and opportunities that AI brings as a technology. How does your company raise awareness of all these opportunities?
Alessandro: We offer platforms for sharing knowledge, organize regular networking events and help companies find the right experts for their specific needs. In this way, we ensure that AI innovation flourishes in Germany and that our members receive the best possible support.
This also includes the AI Village in Hürth near Cologne, which you are currently setting up.
Alex: That's right. The AI Village in Hürth is a joint project of the City of Hürth, the KI Federal Association, the Fraunhofer Institutes IAIS and FIT, KI.NRW and the Rheinische Fachhochschule, with which we want to use the structural change in the Rhenish region as an opportunity and promote and anchor the development and application of AI in the region. The establishment of such a hub is intended in particular to promote networking between AI companies and the established economy in the Rhenish region. In addition, AI should be made learnable and experienced in order to bring this key technology closer to the general population. The importance of the project is also reflected in the support from the Federal Ministry of Economics and Climate Protection, which is funding the AI Village for the next four years.
Projects like this are very inspiring. Nevertheless, quite a few companies are concerned about the security of AI, as the legal framework does not always seem clear. The aim of the European Commission is to make AI secure and trustworthy. What point are we at here?
Alex: Of course, the security of AI plays a major role for companies and is also of great importance for the AI Federal Association. For companies in Germany in particular, topics such as data protection, manipulation and even cyber security are key issues that need to be clarified before using AI.
“Of course, the security of AI plays a major role for companies. ”
Alessandro: We are convinced that, on the one hand, Germany needs educational initiatives that show both the general population and specifically in companies where the opportunities and risks lie when using AI. On the other hand, it is just as important that we promote the development of AI applications in Germany, which we can design from the outset in accordance with our European values and data protection rules. It is therefore crucial that we establish clear safety standards and guidelines to address both real and perceived concerns about AI security. Only then can we exploit the full potential of this technology while ensuring public and business trust.
Alex: We therefore also fundamentally support the work of European authorities, which are currently trying to create a regulatory framework that sets European standards and is intended to promote AI innovations in Europe and thus also in Germany.
How will companies be regulated and legally affected by the proposed EU AI Act, and what legal requirements should they keep in mind in order to stay well informed?
Alessandro: The EU's AI Act is currently in trilogue negotiations, which means that the Council and Parliament are trying to reach a compromise, moderated by the Commission. A final text is expected at the end of the year at the earliest.
What is it about?
Alessandro: In essence, it is about regulating the use of AI in Europe, particularly with regard to risks and ethics. Companies must meet stricter requirements, for example, if their AI systems are classified as “high-risk.” After an initially very pragmatic solution, the AI Act has developed into a very far-reaching regulatory body in the last two years. Especially with regard to generative AI and its regulation, we see the currently available texts clearly the risk that the AI Act will lead to requirements for AI companies that are virtually impossible to implement and thus jeopardize AI innovations in Europe in the long term.
Alex: In addition, in our opinion, Europe's position in the global AI ecosystem must also be taken into account. In the area of generative AI alone, almost 90 percent of all AI applications available on the market come from the USA and China. If the EU were to introduce these strict and far-reaching regulatory requirements, this would inevitably result in deep cuts in our AI catch-up mentioned at the outset. The European AI ecosystem depends on start-ups and SMEs. It is becoming much more difficult for these companies in particular to meet such compliance requirements; we do not see this difficulty among American big tech companies, as their handling of the DSA or the DMA is currently also showing.
Such regulations could be a challenge for start-ups and SMEs.
Alex: Ultimately, the EU's goal must be to promote the development and implementation of domestic AI systems, because this is the only way we can maintain and strengthen our digital sovereignty in the long term. And such a goal can only be achieved if an innovation-friendly, clear and pragmatic regulatory framework is developed. The Federal AI Association will therefore intensively continue its work on the AI Act so that it develops in that direction as far as possible.
Thank you very much for talking to us!
The interview was published for the first time in issue 02/23 of our magazine data! You can find all issues and articles here:
