Germany embraces AI to drive digital transformation at scale

Germany is accelerating its digital transformation by embracing artificial intelligence, the country’s Minister for Digital Transformation and Government Modernisation Karsten Wildberger highlighted.

“We are embracing it at full speed,” Wildberger said during the World Governments Summit happening in Dubai, describing AI as the next technology that can help Germany “leapfrog” in government services. Officials use artificial intelligence throughout public administration to speed up operations while increasing productivity and creating easier access to public services.

Wildberger stated that organisations must develop "innovation-friendly" regulations which will help progress through AI adoption while maintaining public trust.

Germany established an underground artificial intelligence factory in Munich which will develop a national AI industry while strengthening the country's digital capabilities. Wildberger identified Germany's major strengths as its top research institutions, extensive industry knowledge, and access to vast data resources, which he described as "the backbone of AI".

The government uses its strengths to achieve AI implementation in all sectors while supporting grassroots innovation, according to his statement.

Germany broke a record in 2025 with 3,568 new startups, which represented a 29% increase from the previous year in 2024. Over a quarter of these companies incorporate AI as a fundamental aspect of their business, as reported by German Trade and Invest.

Moreover, the report also stated that more than 25% of these businesses use artificial intelligence as their core operational technology.

Wildberger explained that the country requires more innovation which exists at the local level since this serves as the foundation for its AI development initiatives which are supported by the government and its startup ecosystem.