German AI Market grows By a Third

German AI market grows by a third

According to Bitkom, spending on artificial intelligence will increase by 32% this year. The main growth driver is AI software.

The current boom in artificial intelligence is leading to a sharp rise in demand in the German market. Spending on AI software, services and corresponding hardware is expected to rise to 6.3 billion euros this year. An increase of 32% compared to 2022, when €4.8 billion was spent on artificial intelligence. This is according to the digital association Bitkom, based on data from the market research company IDC.

The largest share of AI expenditure this year will be on AI software (4.1 billion euros), followed by AI-related services (1.3 billion euros) and hardware (0.9 billion euros). According to Bitkom, similarly strong growth is expected in the coming year. Expenditure is then expected to rise again by 30 percent to 8.2 billion euros. In 2025, the 10 billion euro mark could even be surpassed.

According to Bitkom, market development depends very much on the regulatory framework. Bitkom President Ralf Wintergerst explains this view: “Providers and users of AI need a secure legal framework, which is why it is right that the EU is working on an AI Act. However, we must ensure that, unlike with the General Data Protection Regulation, it does not backfire. The AI Act should focus on critical AI applications and not on foundation models as the underlying technology.”

One year since the introduction of ChatGPT

Many people have had their first direct contact with artificial intelligence this year since ChatGPT became publicly available on November 30, 2022. According to a recent Bitkom survey of 1,004 people in Germany aged 16 and over, 34% have already tried out the AI chatbot. Two thirds (66%) believe that ChatGPT and similar applications will fundamentally change our lives.

“The launch of ChatGPT a year ago was an initial spark for the use of AI. ChatGPT showed many people for the first time what AI can already do today,” says Bitkom CEO Wintergerst. “It has never been easier or more cost-effective for companies to use AI and gain initial experience. This opportunity must be seized now.”