{"id":1789803,"date":"2026-02-24T09:30:53","date_gmt":"2026-02-24T06:30:53","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=1789803"},"modified":"2026-02-24T09:30:53","modified_gmt":"2026-02-24T06:30:53","slug":"digitalization-and-ai-jobs-on-the-brink","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=1789803","title":{"rendered":"Digitalization and AI: Jobs on the brink?"},"content":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/static.dw.com\/image\/75822959_6.jpg&#8221;]<\/p>\n<article class=\"sk6xmai\">\n<div class=\"content-area sa7l9jt s9mg977\">\n<section data-tracking-name=\"sharing-icons-inline\" class=\"c75t7t0 hh5424a in-line closed\">\n<div class=\"copy-button-wrapper closed\"><span class=\"svdcmki\">https:\/\/p.dw.com\/p\/58Llt<\/span><\/div>\n<\/section>\n<figure class=\"s4bcs45\"><source type=\"image\/webp\" srcset=\"https:\/\/static.dw.com\/image\/75822959_800.webp 50w, https:\/\/static.dw.com\/image\/75822959_801.webp 129w, https:\/\/static.dw.com\/image\/75822959_802.webp 352w, https:\/\/static.dw.com\/image\/75822959_803.webp 575w\" media=\"(min-width: 0px) and (max-width: 575px)\" height=\"100\" width=\"100\" \/><figcaption class=\"c1oedowi lofg86o m4xla6a s16w0xvi rcjjkz7 w128axg5 b1fzgn0z\">Germany&#8217;s new Industrial AI Cloud data center opened to much fanfare last week<small class=\"copyright c19ed66t ihwmx5 idu7i8u lxmvniw icns9en rcjjkz7 w128axg5 b1fzgn0z\">Image: picture alliance\/dpa<\/small><\/figcaption><\/figure>\n<div data-tracking-skip=\"true\" data-tracking-name=\"rich-text\" class=\"c17j8gzx rc0m0op r1ebneao s198y7xq rich-text l1evdo4u blt0baw s16w0xvi rcjjkz7 w128axg5 b1fzgn0z\">\n<p><a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/germany\/t-17871182\">Germany<\/a> launched a major <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/artificial-intelligence\/t-42133476\">artificial intelligence<\/a> (AI) project this month to cut its reliance on US providers of\u00a0high-performance\u00a0computing and data processing \u2014 a move seen as helping Europe to control its own AI future.<\/p>\n<p>The Industrial AI Cloud, backed by <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/deutsche-telekom\/t-19095584\">Deutsche Telekom<\/a>, was built in record time, taking\u00a0just six months to plan, build\u00a0and launch, compared with\u00a0the typical 12 to 24\u00a0months.<\/p>\n<p>The telecom firm\u00a0repurposed and modernized an existing facility in Munich&#8217;s Tucherpark, with\u00a0nearly 10,000 NVIDIA Blackwell GPUs \u2014 the high-end chips currently in global short supply. Telekom says the computing power is\u00a0sufficient for all 450 million EU\u00a0citizens using an AI assistant simultaneously.<\/p>\n<p>However, the Industrial AI Cloud isn&#8217;t aimed at individual consumers. Instead, it targets Germany&#8217;s industrial heavyweights, including <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/auto-industry\/t-17282970\">automakers<\/a>, machinery manufacturers and <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/robots\/t-37675402\">robotics<\/a> companies.\u00a0It could also be a critical tool for research institutions, the public sector and firms developing AI applications.<\/p>\n<p>&#8220;We are investing in AI, in Germany as a business location and in Europe,&#8221;\u00a0Tim H\u00f6ttges, CEO of Deutsche Telekom, said of the launch.\u00a0&#8220;Our AI factory in Munich is the basis for innovative business models, for industry, start-ups &#8230;\u00a0the government \u2014\u00a0and for sovereignty. We are proving here that Europe can do AI.&#8221;<\/p>\n<div class=\"vjs-wrapper embed big\">\n<h2 aria-label=\"Embedded video \u2014 Digitalization and AI: Jobs on the brink?\" class=\"headline\">Digitalization and AI: Jobs on the brink?<\/h2>\n<p><video id=\"video-74443160\" controls playsinline preload=\"none\" poster=\"image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mNkYAAAAAYAAjCB0C8AAAAASUVORK5CYII=\" data-id=\"74443160\" data-posterurl=\"https:\/\/static.dw.com\/image\/74468418_605.webp\" data-duration=\"01:44\"><source src=\"https:\/\/hlsvod.dw.com\/i\/dwtv_video\/flv\/me\/me251021_DyingJobsNEU_,AVC_480x270,AVC_512x288,AVC_640x360,AVC_960x540,AVC_1280x720,AVC_1920x1080,.mp4.csmil\/master.m3u8\" type=\"application\/x-mpegURL\" \/><\/video><\/div>\n<h2>Industrial AI taps into Germany&#8217;s core strengths<\/h2>\n<p>The new\u00a0project aligns directly with Germany&#8217;s broader <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/germany-artificial-intelligence-industry-technology-siemens-china-us-chatgpt-auto-industry\/a-74876661\">Industrial AI<\/a> ambitions, tailoring AI to the country&#8217;s niche \u2014 manufacturing\u00a0 \u2014 rather than consumer-facing, where\u00a0the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/united-states-of-america\/t-19065189\">United States<\/a>\u00a0and <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/china\/t-18480887\">China<\/a> have the clear lead.<\/p>\n<p>Antonio Kr\u00fcger, CEO of the German Research Center for Artificial Intelligence (DFKI), agrees that Industrial AI gives Germany a chance to play\u00a0catch-up, without the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/china-ai-artificial-intelligence-deepseek-us-chatgpt-semiconductors-graphics-technology-v2\/a-74361630\">trillion-dollar investment gamble<\/a> by the world&#8217;s two largest economies.<\/p>\n<p>&#8220;Industrial AI allows Germany to play to its strengths: designing\u00a0smaller, specialized AI models that utilize more than a decade of data from Germany&#8217;s small and medium enterprises, known as the Mittelstand,&#8221;\u00a0Kr\u00fcger told DW.<\/p>\n<p>Germany&#8217;s Mittelstand, widely regarded as the backbone of the country\u2019s economy,\u00a0has\u00a0amassed years of highly specialized production, logistics, and machine-level data that is now invaluable for training industrial AI systems.<\/p>\n<h2>Germany pitches &#8216;trustworthy AI&#8217;<\/h2>\n<p>The <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/tech-first-ministry-seeks-to-redefine-german-efficiency\/a-74587435\">German strategy<\/a> is also\u00a0being framed as &#8220;trustworthy AI,&#8221;\u00a0turning the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/eu-plans-to-ease-gdpr-laws-and-ai-constraints-in-major-shift\/a-74792773\">EU&#8217;s often-criticized AI Act<\/a> from a perceived drag\u00a0on innovation into a competitive advantage by giving manufacturers clear, enforceable rules for deploying safe, reliable systems.<\/p>\n<p>Kr\u00fcger added that if Germany can &#8220;build up an infrastructure that is trustworthy enough for\u00a0companies to hand over their data,\u00a0it will help us\u00a0stay competitive.&#8221;\u00a0<\/p>\n<p>The\u00a0focus on integrity underpins other major Industrial AI investments, including <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/siemens\/t-17346640\">Siemens&#8217;<\/a>\u00a0expanded partnership with NVIDIA, announced at CES 2026,\u00a0to develop an Industrial AI Operating System. The company is also\u00a0embedding AI assistants across factory\u2011automation platforms.<\/p>\n<p>Bosch, meanwhile, is spending\u00a0$2.9 billion (\u20ac2.4 billion) to roll out\u00a0AI\u2011based technologies aimed at improving manufacturing quality control.<\/p>\n<p>Germany&#8217;s Economy Ministry projects that widespread AI adoption in industry could add at least one percentage point to annual real GDP growth starting this year.<\/p>\n<div class=\"vjs-wrapper embed big\">\n<h2 aria-label=\"Embedded video \u2014 Will AI laws protect us? EU AI Act explained \" class=\"headline\">Will AI laws protect us? EU AI Act explained <\/h2>\n<p><video id=\"video-75817705\" controls playsinline preload=\"none\" poster=\"image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mNkYAAAAAYAAjCB0C8AAAAASUVORK5CYII=\" data-id=\"75817705\" data-posterurl=\"https:\/\/static.dw.com\/image\/71513665_605.webp\" data-duration=\"04:12\"><source src=\"https:\/\/hlsvod.dw.com\/i\/dwtv_video\/flv\/she\/she260205_TTN_AIregulation_,AVC_480x270,AVC_512x288,AVC_640x360,AVC_960x540,AVC_1280x720,AVC_1920x1080,.mp4.csmil\/master.m3u8\" type=\"application\/x-mpegURL\" \/><\/video><\/div>\n<h2>Leaders&#8217;\u00a0caution may slow AI rollout<\/h2>\n<p>Despite the huge potential of Industrial AI,\u00a0Germany faces a familiar obstacle in recapturing lost ground in the AI race \u2014 aversion\u00a0to risk. A common complaint about German business executives\u00a0is their slow and hesitant decision-making. In this instance, AI projects in Germany often get stuck in pilot mode.<\/p>\n<p>&#8220;German firms often\u00a0try\u00a0to make their AI products perfect before rolling them out,&#8221; Ishansh Gupta, <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/bayerische-motorenwerke-bmw\/t-17449037\">BMW\u2019s<\/a> AI and digitalization lead, told DW. &#8220;China and the US roll out imperfect versions to help them improve, learning from user feedback.&#8221;<\/p>\n<p>The BMW executive thinks\u00a0Industrial AI will truly mature when German business leaders fully back the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/technology\/t-17516578\">technology<\/a> and\u00a0once models deliver\u00a0causal insights, which industry watchers say\u00a0could be up to five years away.<\/p>\n<p>Today&#8217;s AI systems largely work by detecting statistical correlations in vast datasets. They spot\u00a0patterns and associations rather than understanding why things happen. This\u00a0limits their usefulness in complex industrial settings.<\/p>\n<p>In the\u00a0future, Industrial AI could help German manufacturers resolve much larger business crises,\u00a0like\u00a0unexpected supply issues, volatile energy prices, or the need to speed up new product launches.<\/p>\n<p>&#8220;Let&#8217;s say you want to work out how a strike in Poland could affect your supply chain,&#8221; Gupta said.\u00a0&#8220;With causal AI models, leaders could\u00a0test a change of suppliers, reallocation of capacity, or adjust\u00a0workforce planning to calculate the expected impact.&#8221;<\/p>\n<figure class=\"placeholder-image master_landscape big\"><img data-format=\"MASTER_LANDSCAPE\" data-id=\"75913283\" data-url=\"https:\/\/static.dw.com\/image\/75913283_${formatId}.jpg\" data-aspect-ratio=\"16\/9\" alt=\"Robots work on an electric car ID.3 body at the assembly line during a press tour at the plant of the German manufacturer Volkswagen AG (VW) in Zwickau, Germany, on February 25, 2020\"><figcaption class=\"img-caption\">German carmakers are weaving AI into everything from design to production<small class=\"copyright\">Image: picture alliance \/ ASSOCIATED PRESS<\/small><\/figcaption><\/figure>\n<h2>Industrial AI could help delay China&#8217;s advance<\/h2>\n<p>The Industrial AI strategy lands at a pivotal moment for Germany\u2019s economy. The country isn&#8217;t just trailing in the global AI race. Its manufacturing\u00a0base is also rapidly losing ground to China.<\/p>\n<p>China was for decades a bonanza for German producers, providing both a vast consumer market and the\u00a0cheap, reliable parts and raw materials that powered their rise.\u00a0But in 2025, German exports to China slipped to \u20ac81.8 billion ($97.2 billion), their lowest level in a decade, according to the German government&#8217;s statistics agency, Destatis.<\/p>\n<p>From a\u00a0peak in 2022, German exports to China have declined by nearly a quarter, led by a\u00a0sharp fall of 66%\u00a0in auto deliveries, the EU&#8217;s Eurostat data shows.\u00a0German manufacturers are\u00a0also facing intense rivalry from China in their other major export markets.<\/p>\n<p>A report published this month by the Rhodium\u00a0Group, the New York-based research house that specializes in China, warned that Berlin &#8220;needs to seize the controls, defining long-term industrial and technological priorities, in close coordination with industry, and putting the policies in place to deliver on them.&#8221;<\/p>\n<figure class=\"placeholder-image master_landscape big\"><img data-format=\"MASTER_LANDSCAPE\" data-id=\"75913231\" data-url=\"https:\/\/static.dw.com\/image\/75913231_${formatId}.jpg\" data-aspect-ratio=\"16\/9\" alt=\"German Chancellor Friedrich Merz speaks at the World Economic Forum (WEF) Annual Meeting 2026 in Davos, Switzerland, on January 22, 2026\"><figcaption class=\"img-caption\">Merz told the World Economic Forum that Germany planned &#8216;industrial-scale&#8217; AI<small class=\"copyright\">Image: picture alliance \/ Xinhua News Agency<\/small><\/figcaption><\/figure>\n<h2>Merz backs ambition with funding<\/h2>\n<p>Chancellor <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/friedrich-merz\/t-60575802\">Friedrich Merz<\/a> last year\u00a0launched the country&#8217;s High-Tech Agenda, promising\u00a0\u20ac18 billion in funding before 2029.\u00a0It\u00a0prioritizes AI as one of six strategic technologies, alongside quantum computing, microelectronics, biotech, fusion\u00a0and climate-neutral mobility.<\/p>\n<p>&#8220;Artificial intelligence requires industrial scale,&#8221; Merz said in a speech at the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/world-economic-forum\/t-39621193\">World Economic Forum<\/a> in Davos last month. &#8220;Germany has one of the world\u2019s largest pools of industrial data. That is just one reason why we are investing in high-performance AI gigafactories, speeding up the expansion of data centers and creating the digital infrastructure for a competitive AI economy.&#8221;<\/p>\n<p>Germany&#8217;s new Industrial AI Cloud is already running at more than a third of its capacity, according to Deutsche Telekom. The platform has welcomed the\u00a0Munich-based Agile Robots, which fuses AI with robotics, and PhysicsX, a specialist in technical simulation that helps shorten product-development cycles.<\/p>\n<p>But while Industrial AI has the potential to help turn around\u00a0Germany&#8217;s fortunes, DFKI&#8217;s Kr\u00fcger thinks it may not be enough to prevent manufacturing decline in the long term.<\/p>\n<p>&#8220;Within\u00a0the next five to 10 years, industrial production will still play a big role [in the economy], but it will not be the most important sector,&#8221; he told DW. &#8220;Germany needs\u00a0to slowly transform into a service economy, especially digital services.&#8221;<\/p>\n<p><em>Edited by: Srinivas Mazumdaru<\/em><\/p>\n<\/div>\n<\/div>\n<\/article>\n<div data-tracking-skip=\"true\" data-tracking-name=\"rich-text\" class=\"c17j8gzx rc0m0op r1ebneao s198y7xq rich-text l1evdo4u blt0baw s16w0xvi rcjjkz7 w128axg5 b1fzgn0z\">\n<p><a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/germany\/t-17871182\">Germany<\/a> launched a major <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/artificial-intelligence\/t-42133476\">artificial intelligence<\/a> (AI) project this month to cut its reliance on US providers of\u00a0high-performance\u00a0computing and data processing \u2014 a move seen as helping Europe to control its own AI future.<\/p>\n<p>The Industrial AI Cloud, backed by <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/deutsche-telekom\/t-19095584\">Deutsche Telekom<\/a>, was built in record time, taking\u00a0just six months to plan, build\u00a0and launch, compared with\u00a0the typical 12 to 24\u00a0months.<\/p>\n<p>The telecom firm\u00a0repurposed and modernized an existing facility in Munich&#8217;s Tucherpark, with\u00a0nearly 10,000 NVIDIA Blackwell GPUs \u2014 the high-end chips currently in global short supply. Telekom says the computing power is\u00a0sufficient for all 450 million EU\u00a0citizens using an AI assistant simultaneously.<\/p>\n<p>However, the Industrial AI Cloud isn&#8217;t aimed at individual consumers. Instead, it targets Germany&#8217;s industrial heavyweights, including <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/auto-industry\/t-17282970\">automakers<\/a>, machinery manufacturers and <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/robots\/t-37675402\">robotics<\/a> companies.\u00a0It could also be a critical tool for research institutions, the public sector and firms developing AI applications.<\/p>\n<p>&#8220;We are investing in AI, in Germany as a business location and in Europe,&#8221;\u00a0Tim H\u00f6ttges, CEO of Deutsche Telekom, said of the launch.\u00a0&#8220;Our AI factory in Munich is the basis for innovative business models, for industry, start-ups &#8230;\u00a0the government \u2014\u00a0and for sovereignty. We are proving here that Europe can do AI.&#8221;<\/p>\n<div class=\"vjs-wrapper embed big\">\n<h2 aria-label=\"Embedded video \u2014 Digitalization and AI: Jobs on the brink?\" class=\"headline\">Digitalization and AI: Jobs on the brink?<\/h2>\n<p><video id=\"video-74443160\" controls playsinline preload=\"none\" poster=\"image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mNkYAAAAAYAAjCB0C8AAAAASUVORK5CYII=\" data-id=\"74443160\" data-posterurl=\"https:\/\/static.dw.com\/image\/74468418_605.webp\" data-duration=\"01:44\"><source src=\"https:\/\/hlsvod.dw.com\/i\/dwtv_video\/flv\/me\/me251021_DyingJobsNEU_,AVC_480x270,AVC_512x288,AVC_640x360,AVC_960x540,AVC_1280x720,AVC_1920x1080,.mp4.csmil\/master.m3u8\" type=\"application\/x-mpegURL\" \/><\/video><\/div>\n<h2>Industrial AI taps into Germany&#8217;s core strengths<\/h2>\n<p>The new\u00a0project aligns directly with Germany&#8217;s broader <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/germany-artificial-intelligence-industry-technology-siemens-china-us-chatgpt-auto-industry\/a-74876661\">Industrial AI<\/a> ambitions, tailoring AI to the country&#8217;s niche \u2014 manufacturing\u00a0 \u2014 rather than consumer-facing, where\u00a0the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/united-states-of-america\/t-19065189\">United States<\/a>\u00a0and <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/china\/t-18480887\">China<\/a> have the clear lead.<\/p>\n<p>Antonio Kr\u00fcger, CEO of the German Research Center for Artificial Intelligence (DFKI), agrees that Industrial AI gives Germany a chance to play\u00a0catch-up, without the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/china-ai-artificial-intelligence-deepseek-us-chatgpt-semiconductors-graphics-technology-v2\/a-74361630\">trillion-dollar investment gamble<\/a> by the world&#8217;s two largest economies.<\/p>\n<p>&#8220;Industrial AI allows Germany to play to its strengths: designing\u00a0smaller, specialized AI models that utilize more than a decade of data from Germany&#8217;s small and medium enterprises, known as the Mittelstand,&#8221;\u00a0Kr\u00fcger told DW.<\/p>\n<p>Germany&#8217;s Mittelstand, widely regarded as the backbone of the country\u2019s economy,\u00a0has\u00a0amassed years of highly specialized production, logistics, and machine-level data that is now invaluable for training industrial AI systems.<\/p>\n<h2>Germany pitches &#8216;trustworthy AI&#8217;<\/h2>\n<p>The <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/tech-first-ministry-seeks-to-redefine-german-efficiency\/a-74587435\">German strategy<\/a> is also\u00a0being framed as &#8220;trustworthy AI,&#8221;\u00a0turning the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/eu-plans-to-ease-gdpr-laws-and-ai-constraints-in-major-shift\/a-74792773\">EU&#8217;s often-criticized AI Act<\/a> from a perceived drag\u00a0on innovation into a competitive advantage by giving manufacturers clear, enforceable rules for deploying safe, reliable systems.<\/p>\n<p>Kr\u00fcger added that if Germany can &#8220;build up an infrastructure that is trustworthy enough for\u00a0companies to hand over their data,\u00a0it will help us\u00a0stay competitive.&#8221;\u00a0<\/p>\n<p>The\u00a0focus on integrity underpins other major Industrial AI investments, including <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/siemens\/t-17346640\">Siemens&#8217;<\/a>\u00a0expanded partnership with NVIDIA, announced at CES 2026,\u00a0to develop an Industrial AI Operating System. The company is also\u00a0embedding AI assistants across factory\u2011automation platforms.<\/p>\n<p>Bosch, meanwhile, is spending\u00a0$2.9 billion (\u20ac2.4 billion) to roll out\u00a0AI\u2011based technologies aimed at improving manufacturing quality control.<\/p>\n<p>Germany&#8217;s Economy Ministry projects that widespread AI adoption in industry could add at least one percentage point to annual real GDP growth starting this year.<\/p>\n<div class=\"vjs-wrapper embed big\">\n<h2 aria-label=\"Embedded video \u2014 Will AI laws protect us? EU AI Act explained \" class=\"headline\">Will AI laws protect us? EU AI Act explained <\/h2>\n<p><video id=\"video-75817705\" controls playsinline preload=\"none\" poster=\"image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mNkYAAAAAYAAjCB0C8AAAAASUVORK5CYII=\" data-id=\"75817705\" data-posterurl=\"https:\/\/static.dw.com\/image\/71513665_605.webp\" data-duration=\"04:12\"><source src=\"https:\/\/hlsvod.dw.com\/i\/dwtv_video\/flv\/she\/she260205_TTN_AIregulation_,AVC_480x270,AVC_512x288,AVC_640x360,AVC_960x540,AVC_1280x720,AVC_1920x1080,.mp4.csmil\/master.m3u8\" type=\"application\/x-mpegURL\" \/><\/video><\/div>\n<h2>Leaders&#8217;\u00a0caution may slow AI rollout<\/h2>\n<p>Despite the huge potential of Industrial AI,\u00a0Germany faces a familiar obstacle in recapturing lost ground in the AI race \u2014 aversion\u00a0to risk. A common complaint about German business executives\u00a0is their slow and hesitant decision-making. In this instance, AI projects in Germany often get stuck in pilot mode.<\/p>\n<p>&#8220;German firms often\u00a0try\u00a0to make their AI products perfect before rolling them out,&#8221; Ishansh Gupta, <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/bayerische-motorenwerke-bmw\/t-17449037\">BMW\u2019s<\/a> AI and digitalization lead, told DW. &#8220;China and the US roll out imperfect versions to help them improve, learning from user feedback.&#8221;<\/p>\n<p>The BMW executive thinks\u00a0Industrial AI will truly mature when German business leaders fully back the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/technology\/t-17516578\">technology<\/a> and\u00a0once models deliver\u00a0causal insights, which industry watchers say\u00a0could be up to five years away.<\/p>\n<p>Today&#8217;s AI systems largely work by detecting statistical correlations in vast datasets. They spot\u00a0patterns and associations rather than understanding why things happen. This\u00a0limits their usefulness in complex industrial settings.<\/p>\n<p>In the\u00a0future, Industrial AI could help German manufacturers resolve much larger business crises,\u00a0like\u00a0unexpected supply issues, volatile energy prices, or the need to speed up new product launches.<\/p>\n<p>&#8220;Let&#8217;s say you want to work out how a strike in Poland could affect your supply chain,&#8221; Gupta said.\u00a0&#8220;With causal AI models, leaders could\u00a0test a change of suppliers, reallocation of capacity, or adjust\u00a0workforce planning to calculate the expected impact.&#8221;<\/p>\n<figure class=\"placeholder-image master_landscape big\"><img data-format=\"MASTER_LANDSCAPE\" data-id=\"75913283\" data-url=\"https:\/\/static.dw.com\/image\/75913283_${formatId}.jpg\" data-aspect-ratio=\"16\/9\" alt=\"Robots work on an electric car ID.3 body at the assembly line during a press tour at the plant of the German manufacturer Volkswagen AG (VW) in Zwickau, Germany, on February 25, 2020\"><figcaption class=\"img-caption\">German carmakers are weaving AI into everything from design to production<small class=\"copyright\">Image: picture alliance \/ ASSOCIATED PRESS<\/small><\/figcaption><\/figure>\n<h2>Industrial AI could help delay China&#8217;s advance<\/h2>\n<p>The Industrial AI strategy lands at a pivotal moment for Germany\u2019s economy. The country isn&#8217;t just trailing in the global AI race. Its manufacturing\u00a0base is also rapidly losing ground to China.<\/p>\n<p>China was for decades a bonanza for German producers, providing both a vast consumer market and the\u00a0cheap, reliable parts and raw materials that powered their rise.\u00a0But in 2025, German exports to China slipped to \u20ac81.8 billion ($97.2 billion), their lowest level in a decade, according to the German government&#8217;s statistics agency, Destatis.<\/p>\n<p>From a\u00a0peak in 2022, German exports to China have declined by nearly a quarter, led by a\u00a0sharp fall of 66%\u00a0in auto deliveries, the EU&#8217;s Eurostat data shows.\u00a0German manufacturers are\u00a0also facing intense rivalry from China in their other major export markets.<\/p>\n<p>A report published this month by the Rhodium\u00a0Group, the New York-based research house that specializes in China, warned that Berlin &#8220;needs to seize the controls, defining long-term industrial and technological priorities, in close coordination with industry, and putting the policies in place to deliver on them.&#8221;<\/p>\n<figure class=\"placeholder-image master_landscape big\"><img data-format=\"MASTER_LANDSCAPE\" data-id=\"75913231\" data-url=\"https:\/\/static.dw.com\/image\/75913231_${formatId}.jpg\" data-aspect-ratio=\"16\/9\" alt=\"German Chancellor Friedrich Merz speaks at the World Economic Forum (WEF) Annual Meeting 2026 in Davos, Switzerland, on January 22, 2026\"><figcaption class=\"img-caption\">Merz told the World Economic Forum that Germany planned &#8216;industrial-scale&#8217; AI<small class=\"copyright\">Image: picture alliance \/ Xinhua News Agency<\/small><\/figcaption><\/figure>\n<h2>Merz backs ambition with funding<\/h2>\n<p>Chancellor <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/friedrich-merz\/t-60575802\">Friedrich Merz<\/a> last year\u00a0launched the country&#8217;s High-Tech Agenda, promising\u00a0\u20ac18 billion in funding before 2029.\u00a0It\u00a0prioritizes AI as one of six strategic technologies, alongside quantum computing, microelectronics, biotech, fusion\u00a0and climate-neutral mobility.<\/p>\n<p>&#8220;Artificial intelligence requires industrial scale,&#8221; Merz said in a speech at the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/world-economic-forum\/t-39621193\">World Economic Forum<\/a> in Davos last month. &#8220;Germany has one of the world\u2019s largest pools of industrial data. That is just one reason why we are investing in high-performance AI gigafactories, speeding up the expansion of data centers and creating the digital infrastructure for a competitive AI economy.&#8221;<\/p>\n<p>Germany&#8217;s new Industrial AI Cloud is already running at more than a third of its capacity, according to Deutsche Telekom. The platform has welcomed the\u00a0Munich-based Agile Robots, which fuses AI with robotics, and PhysicsX, a specialist in technical simulation that helps shorten product-development cycles.<\/p>\n<p>But while Industrial AI has the potential to help turn around\u00a0Germany&#8217;s fortunes, DFKI&#8217;s Kr\u00fcger thinks it may not be enough to prevent manufacturing decline in the long term.<\/p>\n<p>&#8220;Within\u00a0the next five to 10 years, industrial production will still play a big role [in the economy], but it will not be the most important sector,&#8221; he told DW. &#8220;Germany needs\u00a0to slowly transform into a service economy, especially digital services.&#8221;<\/p>\n<p><em>Edited by: Srinivas Mazumdaru<\/em><\/p>\n<\/div>\n<p><a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/germany\/t-17871182\">Germany<\/a> launched a major <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/artificial-intelligence\/t-42133476\">artificial intelligence<\/a> (AI) project this month to cut its reliance on US providers of\u00a0high-performance\u00a0computing and data processing \u2014 a move seen as helping Europe to control its own AI future.<\/p>\n<p>The Industrial AI Cloud, backed by <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/deutsche-telekom\/t-19095584\">Deutsche Telekom<\/a>, was built in record time, taking\u00a0just six months to plan, build\u00a0and launch, compared with\u00a0the typical 12 to 24\u00a0months.<\/p>\n<p>The telecom firm\u00a0repurposed and modernized an existing facility in Munich&#8217;s Tucherpark, with\u00a0nearly 10,000 NVIDIA Blackwell GPUs \u2014 the high-end chips currently in global short supply. Telekom says the computing power is\u00a0sufficient for all 450 million EU\u00a0citizens using an AI assistant simultaneously.<\/p>\n<p>However, the Industrial AI Cloud isn&#8217;t aimed at individual consumers. Instead, it targets Germany&#8217;s industrial heavyweights, including <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/auto-industry\/t-17282970\">automakers<\/a>, machinery manufacturers and <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/robots\/t-37675402\">robotics<\/a> companies.\u00a0It could also be a critical tool for research institutions, the public sector and firms developing AI applications.<\/p>\n<p>&#8220;We are investing in AI, in Germany as a business location and in Europe,&#8221;\u00a0Tim H\u00f6ttges, CEO of Deutsche Telekom, said of the launch.\u00a0&#8220;Our AI factory in Munich is the basis for innovative business models, for industry, start-ups &#8230;\u00a0the government \u2014\u00a0and for sovereignty. We are proving here that Europe can do AI.&#8221;<\/p>\n<p class=\"vjs-no-js\">To view this video please enable JavaScript, and consider upgrading to a web browser that <a href=\"https:\/\/videojs.com\/html5-video-support\/\" target=\"_blank\">supports HTML5 video<\/a><\/p>\n<p>The new\u00a0project aligns directly with Germany&#8217;s broader <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/germany-artificial-intelligence-industry-technology-siemens-china-us-chatgpt-auto-industry\/a-74876661\">Industrial AI<\/a> ambitions, tailoring AI to the country&#8217;s niche \u2014 manufacturing\u00a0 \u2014 rather than consumer-facing, where\u00a0the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/united-states-of-america\/t-19065189\">United States<\/a>\u00a0and <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/china\/t-18480887\">China<\/a> have the clear lead.<\/p>\n<p>Antonio Kr\u00fcger, CEO of the German Research Center for Artificial Intelligence (DFKI), agrees that Industrial AI gives Germany a chance to play\u00a0catch-up, without the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/china-ai-artificial-intelligence-deepseek-us-chatgpt-semiconductors-graphics-technology-v2\/a-74361630\">trillion-dollar investment gamble<\/a> by the world&#8217;s two largest economies.<\/p>\n<p>&#8220;Industrial AI allows Germany to play to its strengths: designing\u00a0smaller, specialized AI models that utilize more than a decade of data from Germany&#8217;s small and medium enterprises, known as the Mittelstand,&#8221;\u00a0Kr\u00fcger told DW.<\/p>\n<p>Germany&#8217;s Mittelstand, widely regarded as the backbone of the country\u2019s economy,\u00a0has\u00a0amassed years of highly specialized production, logistics, and machine-level data that is now invaluable for training industrial AI systems.<\/p>\n<p>The <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/tech-first-ministry-seeks-to-redefine-german-efficiency\/a-74587435\">German strategy<\/a> is also\u00a0being framed as &#8220;trustworthy AI,&#8221;\u00a0turning the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/eu-plans-to-ease-gdpr-laws-and-ai-constraints-in-major-shift\/a-74792773\">EU&#8217;s often-criticized AI Act<\/a> from a perceived drag\u00a0on innovation into a competitive advantage by giving manufacturers clear, enforceable rules for deploying safe, reliable systems.<\/p>\n<p>Kr\u00fcger added that if Germany can &#8220;build up an infrastructure that is trustworthy enough for\u00a0companies to hand over their data,\u00a0it will help us\u00a0stay competitive.&#8221;\u00a0<\/p>\n<p>The\u00a0focus on integrity underpins other major Industrial AI investments, including <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/siemens\/t-17346640\">Siemens&#8217;<\/a>\u00a0expanded partnership with NVIDIA, announced at CES 2026,\u00a0to develop an Industrial AI Operating System. The company is also\u00a0embedding AI assistants across factory\u2011automation platforms.<\/p>\n<p>Bosch, meanwhile, is spending\u00a0$2.9 billion (\u20ac2.4 billion) to roll out\u00a0AI\u2011based technologies aimed at improving manufacturing quality control.<\/p>\n<p>Germany&#8217;s Economy Ministry projects that widespread AI adoption in industry could add at least one percentage point to annual real GDP growth starting this year.<\/p>\n<p class=\"vjs-no-js\">To view this video please enable JavaScript, and consider upgrading to a web browser that <a href=\"https:\/\/videojs.com\/html5-video-support\/\" target=\"_blank\">supports HTML5 video<\/a><\/p>\n<p>Despite the huge potential of Industrial AI,\u00a0Germany faces a familiar obstacle in recapturing lost ground in the AI race \u2014 aversion\u00a0to risk. A common complaint about German business executives\u00a0is their slow and hesitant decision-making. In this instance, AI projects in Germany often get stuck in pilot mode.<\/p>\n<p>&#8220;German firms often\u00a0try\u00a0to make their AI products perfect before rolling them out,&#8221; Ishansh Gupta, <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/bayerische-motorenwerke-bmw\/t-17449037\">BMW\u2019s<\/a> AI and digitalization lead, told DW. &#8220;China and the US roll out imperfect versions to help them improve, learning from user feedback.&#8221;<\/p>\n<p>The BMW executive thinks\u00a0Industrial AI will truly mature when German business leaders fully back the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/technology\/t-17516578\">technology<\/a> and\u00a0once models deliver\u00a0causal insights, which industry watchers say\u00a0could be up to five years away.<\/p>\n<p>Today&#8217;s AI systems largely work by detecting statistical correlations in vast datasets. They spot\u00a0patterns and associations rather than understanding why things happen. This\u00a0limits their usefulness in complex industrial settings.<\/p>\n<p>In the\u00a0future, Industrial AI could help German manufacturers resolve much larger business crises,\u00a0like\u00a0unexpected supply issues, volatile energy prices, or the need to speed up new product launches.<\/p>\n<p>&#8220;Let&#8217;s say you want to work out how a strike in Poland could affect your supply chain,&#8221; Gupta said.\u00a0&#8220;With causal AI models, leaders could\u00a0test a change of suppliers, reallocation of capacity, or adjust\u00a0workforce planning to calculate the expected impact.&#8221;<\/p>\n<p>The Industrial AI strategy lands at a pivotal moment for Germany\u2019s economy. The country isn&#8217;t just trailing in the global AI race. Its manufacturing\u00a0base is also rapidly losing ground to China.<\/p>\n<p>China was for decades a bonanza for German producers, providing both a vast consumer market and the\u00a0cheap, reliable parts and raw materials that powered their rise.\u00a0But in 2025, German exports to China slipped to \u20ac81.8 billion ($97.2 billion), their lowest level in a decade, according to the German government&#8217;s statistics agency, Destatis.<\/p>\n<p>From a\u00a0peak in 2022, German exports to China have declined by nearly a quarter, led by a\u00a0sharp fall of 66%\u00a0in auto deliveries, the EU&#8217;s Eurostat data shows.\u00a0German manufacturers are\u00a0also facing intense rivalry from China in their other major export markets.<\/p>\n<p>A report published this month by the Rhodium\u00a0Group, the New York-based research house that specializes in China, warned that Berlin &#8220;needs to seize the controls, defining long-term industrial and technological priorities, in close coordination with industry, and putting the policies in place to deliver on them.&#8221;<\/p>\n<p>Chancellor <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/friedrich-merz\/t-60575802\">Friedrich Merz<\/a> last year\u00a0launched the country&#8217;s High-Tech Agenda, promising\u00a0\u20ac18 billion in funding before 2029.\u00a0It\u00a0prioritizes AI as one of six strategic technologies, alongside quantum computing, microelectronics, biotech, fusion\u00a0and climate-neutral mobility.<\/p>\n<p>&#8220;Artificial intelligence requires industrial scale,&#8221; Merz said in a speech at the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/world-economic-forum\/t-39621193\">World Economic Forum<\/a> in Davos last month. &#8220;Germany has one of the world\u2019s largest pools of industrial data. That is just one reason why we are investing in high-performance AI gigafactories, speeding up the expansion of data centers and creating the digital infrastructure for a competitive AI economy.&#8221;<\/p>\n<p>Germany&#8217;s new Industrial AI Cloud is already running at more than a third of its capacity, according to Deutsche Telekom. The platform has welcomed the\u00a0Munich-based Agile Robots, which fuses AI with robotics, and PhysicsX, a specialist in technical simulation that helps shorten product-development cycles.<\/p>\n<p>But while Industrial AI has the potential to help turn around\u00a0Germany&#8217;s fortunes, DFKI&#8217;s Kr\u00fcger thinks it may not be enough to prevent manufacturing decline in the long term.<\/p>\n<p>&#8220;Within\u00a0the next five to 10 years, industrial production will still play a big role [in the economy], but it will not be the most important sector,&#8221; he told DW. &#8220;Germany needs\u00a0to slowly transform into a service economy, especially digital services.&#8221;<\/p>\n<p><em>Edited by: Srinivas Mazumdaru<\/em><\/p>\n<p>[analyse_source url=&#8221;https:\/\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997&#8243;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/static.dw.com\/image\/75822959_6.jpg&#8221;] https:\/\/p.dw.com\/p\/58Llt Germany&#8217;s new Industrial AI Cloud data center opened to much fanfare last weekImage: picture alliance\/dpa Germany launched a major artificial intelligence (AI) project this month to cut its reliance on US providers of\u00a0high-performance\u00a0computing and data processing \u2014 a move seen as helping Europe to control its own AI future. The Industrial [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[226,74],"class_list":["post-1789803","post","type-post","status-publish","format-standard","hentry","category-politics","tag-crawlmanager","tag-dw-com"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1789803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1789803"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1789803\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1789803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1789803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1789803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}