German federal government: Germany to become leading hub for artificial intelligence

Germany’s federal government aims to turn Germany into an international leader in the technology of the future, artificial intelligence (AI). The ruling grand coalition had already announced a master plan for artificial intelligence at national level in its coalition agreement. Last week, the cabinet adopted a white paper as the basis for developing a German AI strategy. In the paper, jointly drawn up by the Ministries of Employment, Research and Economic Affairs, the stated aim is to make the Federal Republic a ‘leading global AI hub’. This is intended to leverage the considerable growth potential of the German economy. However, the paper says, it is crucial to design the innovation process such that the use of AI benefits the welfare of all citizens.

Germany is currently well behind the leader, the US, especially in the business use of AI. This applies not only to the US tech giants, but also to start-ups, which are increasingly applying AI in the US. Other countries are also entering the race for technology leadership in AI with an increasingly proactive approach. China has presented a three-stage AI strategy to make the People’s Republic the global leader by 2030 and to set global standards for AI. To achieve this, the Beijing government aims to invest heavily in R&D.

Despite the rapid growth in other countries, the white paper highlights Germany’s benefits as a hub location. Especially with the business use of data from complex value chains and linking up this data with hybrid services, this is an area in which global competition has only just begun, the paper says. In this growth-intensive market, Germany is in a good starting position thanks to its strong industrial base. Germany is also excellently positioned in key areas of AI such as Industry 4.0 and mobility, the paper adds.

Expanding AI research and combatting the skills shortage

To reach its ambitious target, the government aims to strategically pool, expand and supplement its initiatives to date, launched for example as part of the high tech strategy, the Industry 4.0 platform and basic research. Here the government will initially focus on a major expansion of AI research in Germany. New competence centres for machine learning are to be linked with existing research centres for AI and Big Data to create a national research consortium. These national initiatives will be flanked by international research collaborations; for example, a Franco-German AI centre is to be set up. The white paper also envisages future collaboration with other European partners. 

To combat the skills shortage, the government also intends to fund new AI university chairs and educational programmes. This funding is to be combined with more attractive conditions for specialists from Germany and other countries.

Better transferability to business

The government considers better transfer of research findings and new AI methods to practical applications as another key area of action. This technology transfer is essential for SMEs in particular, since that is where the most productivity potential exists, according to the government. Access by small and midsize companies to AI technologies, computing capacity and cloud platforms, along with the promotion of data sharing, is therefore to be reinforced.

Access to data and legal certainty

The government also wants to significantly boost the volume of ‘usable, high-quality data’, since AI methods such as machine learning rely largely on the scope and quality of the available data pool. To do so, data from the public sector and academia are to be opened up to AI research to a greater extent, without infringing the right to informational self-determination and other basic rights. Such an open data approach, however, would probably require a different legal framework. The government therefore intends to review whether, and if necessary how, access to and use of data should be reorganised. In Brussels, there is also currently an EU copyright reform in discussion, which among other things is intended to release text and data mining for academic purposes from the restrictions of copyright law.

In other areas, too, the use of AI gives rise to numerous, in some cases novel, legal issues. These concern, for example, the interaction between networked objects in the Internet of Things. Increasingly, autonomous systems are being used, which in contrast to merely automated systems, act ‘intelligently’ in a goal-oriented manner and are able to make decisions based on independently weighing up a large number of parameters. If autonomous systems act in a legally significant manner, for example ordering production resources in a smart factory, there are unresolved issues regarding the (im)possibility of a machine entering into a contract. The related legal uncertainty in the relationship between the parties involved can currently be tackled best with well-structured contract drafting. In light of this, there is an urgent need to understand the validity of decisions made by autonomous systems.

The increasing use of AI also triggers complicated liability issues. For example, if a self-driving car causes a traffic accident, there is the question of liability of the operator or provider of the intelligent machine. Various legal problems arise, especially regarding the attribution of the conduct of autonomous systems. Given the largely unresolved legal situation, potential solutions such as introducing a new concept of strict liability, or even recognising a separate legal personality for autonomous systems, therefore need to be discussed.

The government wants to clarify in this respect whether the current legal framework is good enough to guarantee security of investment and legal certainty, or whether new legislation is needed.

AI strategy by the end of November

The final strategy is to be developed by the end of November and presented to the public at the Digital Summit 2018 on 3-4 December. Until then, the government will consult further with experts and conduct a consultation process with associations, organisations and institutions. In addition, the government will have to agree on funding for its plans.

At the same time, other committees are currently focussing on AI. The Bundestag recently set up the select committee on Artificial Intelligence – Social Responsibility and Economic Potential, which is to put forward recommendations for dealing with AI. A new Data Ethics Committee is also to develop proposals for dealing with AI, algorithmic processes and data policy.

Cornerstones of an Artificial Intelligence Strategy (in German) 

Joint press release (in German)