German AI market grows by a third

 

  • Spending on artificial intelligence will increase by 32 per cent to 6.3 billion euros this year
  • Further growth of 30 per cent is expected for 2024 
  • Wintergerst: "A year ago, ChatGPT kicked off the race for the top spots in the digital world"

Berlin, 29 November 2023 - 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. This is an increase of 32 per cent compared to 2022, when €4.8 billion was spent on artificial intelligence. This was announced by the digital association Bitkom on the basis of data from the market research company IDC. "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 President Dr Ralf Wintergerst. "It has never been easier or more cost-effective for companies to utilise AI and gain initial experience. This opportunity must be seized now." 

AI software accounts for the largest share of AI expenditure this year (4.1 billion euros), followed by AI-related services (1.3 billion euros) and hardware (0.9 billion euros). Similar strong growth is currently expected in the coming year. In 2024, expenditure is expected to increase by a further 30 per cent to 8.2 billion euros, and in 2025 it could even exceed the 10 billion euro mark. According to Bitkom, market development depends heavily on the regulatory framework. Wintergerst: "Providers and users of AI need a secure legal framework, which is why it is right that the EU is endeavouring to pass an AI Act. However, we must make sure that, unlike the General Data Protection Regulation, it does not backfire. Critical AI applications should be at the centre of the AI Act and not the so-called foundation models as the underlying technology."

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

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