Merz: 2018 AI strategy left Germany behind in digital race

Chancellor Friedrich Merz stated on Monday that Germany and Europe must accelerate the development of domestic artificial intelligence capabilities to secure their digital sovereignty. Speaking at a conference in Berlin, Merz warned that nations risk losing control of their economic infrastructure if they become too dependent on outside providers. He described the issue of digital sovereignty as an existential question for the region.

Merz pledged to increase efforts to digitalize the German economy. He noted that the goal is to produce and manage technologies independently and securely across the entire value chain, from hardware to software. This commitment requires a far-reaching modernization of the state and the private sector, he said.

The push for faster adoption follows Merz’s appointment of a minister for digitalization and modernization when he took office last year. His government has vowed to close the technological gap with faster-moving European economies, specifically naming the Netherlands and Denmark. Merz recently returned from a five-day trip to Singapore, Japan, and South Korea, where he emphasized Germany’s industrial engineering strengths while seeking partnerships with countries like Canada and France.

Germany first established a national AI strategy in 2018. Since then, many German firms and a wave of startups have integrated the technology. However, the country has faced criticism for its slow progress in building the necessary digital infrastructure, skills, and domestic technology sector.

The Ifo economics research institute reported that Germany is not yet ready to fully exploit the current AI boom. The institute cited a small high-tech sector, poorly digitalized public services, and skill shortages as primary obstacles. It also noted that many public administrative bodies and companies still rely heavily on physical paper for correspondence and record keeping.

Merz said adapting to the new technological era will demand an enormous technological and organizational effort. He stated that avoiding total dependence on third parties for developing and using AI is essential for national security and economic independence.