Germany is rapidly integrating artificial intelligence (AI) across its government services and private sector, driven by a belief that digital transformation is essential for future competitiveness. This push includes substantial investment in domestic AI infrastructure and a commitment to fostering innovation, as articulated by Digital Transformation Minister Karsten Wildberger at the World Governments Summit in Dubai.
Government Embraces AI “at Full Speed”
Wildberger emphasized that Germany is not approaching AI cautiously but rather “embracing it at full speed.” The goal is to leverage AI to dramatically improve government efficiency and create a more agile, modern public sector. This involves applying AI at scale, though the minister acknowledges that regulatory frameworks need further refinement to encourage innovation.
“AI is the next technology that we can use to leapfrog, and that we’re doing that. So we’re applying AI at scale in the government, and so we want to accelerate this.” – Karsten Wildberger
Sovereign AI Industry: The Munich Underground Facility
Germany’s commitment extends beyond software. This week, the country opened an underground AI factory in Munich, designed to establish a sovereign AI industry. This move reduces reliance on foreign AI providers and ensures German control over critical AI technologies.
Leveraging Research, Industry, and Data
Germany possesses key advantages in the AI race. The country already has robust AI research capabilities, including top-tier institutes, and a strong industrial base with significant domain expertise. Crucially, Germany also has access to vast quantities of data – a vital resource for training and refining AI models.
Startup Boom Fuels AI Growth
The private sector is responding. In 2025, Germany recorded 3,568 new startups, a 29% increase from the previous year. Over 25% of these new businesses incorporate AI as a core component of their operations, demonstrating the technology’s growing influence on the German economy. This grassroots innovation is seen as a major strength that policymakers seek to amplify.
Germany is positioning itself as a leader in AI adoption, combining state-led initiatives with private sector innovation to secure a competitive edge in the evolving digital landscape. The country’s strategy focuses on both technological advancement and maintaining control over its AI infrastructure.
