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Artifical Intelligence

Artificial Intelligence News - January 2024

The digital transformation is fast underway in Germany with market developments in artificial intelligence showing the way. 

European Union agrees historic deal to regulate AI

The European Union (EU) has agreed the world’s first comprehensive regulation to govern the use of artificial intelligence after marathon negotiations between the European Parliament and EU member states. The new “human-centric” act sets out strict requirements for the use of AI and emphasizes the transparency obligation of companies that develop basic AI models. The legal framework is intended to become a blueprint for other countries and position Europe as a global AI standard setter. Described as historic by European Commissioner Thierry Breton, the agreement, which will not come into effect before 2025, also secures a ban on the use of real-time surveillance and biometric technologies including emotional recognition (with few police-related exceptions). The foundation of the agreement is a risk-based tiered system where the highest level of regulation applies to those machines that pose the highest risk to health, safety and human rights. Critics of the ground-breaking regulation fear that it could prove detrimental to Europe in the competition for AI-supported transformation and global AI developments. The landmark legislation will also govern social media and search engines including X, TikTok and Google. 

German AI spending growing strongly 

The Bitkom digital industry association has calculated that spending on AI software, services and hardware will increase by 32 percent to EUR 6.3 billion for the year 2023. According to Bitkom, the trend will continue into 2024 with further growth of 30 percent set to see total expenditure rise to around EUR 8.2 billion. The spending split sees AI software secure EUR 4.1 billion share, followed by AI services (EUR 1.3 billion) and AI hardware (EUR 0.9 billion). According to Bitkom, future AI market development is subject to the presence of a secure regulatory framework that focuses on critical AI applications as the underlying technology. 

High level of trust in AI providers from Germany

Eighty-one percent of German companies attach great importance to the country of origin of their AI provider according to a Bitkom study. Providers from Germany and the USA enjoy the highest level of trust, being the only source countries considered by 100 percent of respondents from 605 companies with 20 employees or more. 

German companies accelerating AI efforts

German companies are intensifying their AI efforts according to digital association Bitkom. The proportion of companies using AI has risen from 9 percent to 15 percent within a year. Moreover, 68 percent of companies surveyed consider AI to be the most important technology of the future. Significant market potential exists for AI providers – just one in five companies who consider AI to be the most important future technology currently use it. 

Helsing becomes Europe's first armaments unicorn

Munich-based defense start-up Helsing has raised EUR 209 million, giving it a market valuation of EUR 1.7 billion and thereby making it Europe’s first defense sector unicorn. The company develops AI technologies for fighter aircraft, submarines and tanks. 

19 million euros for Aily Labs in funding round

Munich-based AI company Aily Labs has received EUR 19 million in a series A funding round. Aily Labs uses a combination of AI models to develop products that increase productivity, efficiency and business savings for customers. The start-up, which was founded in 2020, intends to use the new captial to expand its business and strengthen its presence in the USA.

Infineon opens new lab for quantum electronics and AI

Semiconductor giant Infineon has opened a new laboratory for the development of quantum electronics and AI algorithms in Oberhaching near Munich. The new facility will develop and test microelectronic circuits for quantum computers that are stable, small and can be produced on an industrial scale. Twenty researchers will be employed at the lab to develop AI algorithms for early detection of changes in power systems. 

Germany and France plan joint AI initiative 

The governments of France and Germany are planning a joint alliance to advance AI development in Europe according to Handelsblatt. The two countries, who want to work more closely together in the field of AI, discussed plans at a shared retreat in Hamburg in October. Central to the proposed alliance is a balance between regulation and the promotion of AI innovation, with the Franco-German approach potentially forming the basis for greater cooperation in R&D and technology application across the European Union. The European Commission has already invested EUR 1 billion in AI through its “Digital Europe” and “Horizon Europe” programs in 2021 and 2022. 

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