The German government plans to nearly double public funding for artificial intelligence (AI) research to nearly one billion euros (Rp 16.6 trillion) in the next two years, in an effort to close the gap in skills with leaders of the Chinese and US sectors.

The target, announced by Research Minister Bettina Stark-Witzinger on Wednesday, August 23, is relatively small compared to the US$3.3 billion provided by the US government for AI research in 2022 according to the Stanford University report.

This AI push comes as Germany seeks to restore its economy from a recession while the country's main automotive and chemical industries face stiff competition from new electric car makers and high energy costs.

Germany envisions creating 150 new university laboratories for AI research, expanding data centers, and making access easy for complex types of public datasets from which AI techniques can generate new insights: a large venture in a country where general cash transactions and factions are not extinct.

Stanford's report found that private AI funding in the US was much larger, reaching $47.4 billion by 2022, nearly doubling European total spending, and well ahead of China with $13.4 billion.

However, Stark-Witzinger said that the regulatory framework that appears in Europe, which puts greater weight on privacy and personal safety compared to other regions, could attract the perpetrators to Germany, as well as cooperation in the European Union.

"We have an AI that can be explained, trustworthy, and transparent," he said. "That is a competitive advantage. A simpler regulation will encourage private research spending."

While Germany has nothing to compare with the US tech giant, its AI startup has doubled in 2023, but it still only puts Germany in ninth position globally, Stark-Witzinger acknowledged.


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