{"id":100787,"date":"2026-02-24T06:59:12","date_gmt":"2026-02-24T09:59:12","guid":{"rendered":"http:\/\/ces.einnews.com\/article\/895032900"},"modified":"2026-02-24T06:59:12","modified_gmt":"2026-02-24T09:59:12","slug":"industrial-ai-germanys-best-chance-to-take-on-us-china","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/24\/industrial-ai-germanys-best-chance-to-take-on-us-china\/","title":{"rendered":"Industrial AI: Germany&#8217;s best chance to take on US, China"},"content":{"rendered":"<header class=\"sgeegmk\"><span class=\"time-area s1i8qhb9 lxmvniw icns9en rcjjkz7 w128axg5 b1fzgn0z\"><span class=\"publication lxmvniw icns9en rcjjkz7 w128axg5 b1fzgn0z\"><time aria-hidden=\"true\">02\/24\/2026<\/time><span class=\"s28j2rd\">February 24, 2026<\/span><\/span><\/span><\/p>\n<p class=\"teaser-text l1evdo4u blt0baw s16w0xvi sngcpkw w128axg5 b1fzgn0z\">Germany is already harnessing AI for smarter production \u2014 with virtual factories, robot fleets and its newly launched Industrial AI Cloud. Can this edge overcome stagnation and let the country truly take on its rivals?<\/p>\n<\/header>\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\"><img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"A view of Deutsche Telekom's new Industrial AI Cloud data center at the launch in Munich, Germany, on February 5, 2026\" height=\"56.25\" fifu-data-src=\"https:\/\/i2.wp.com\/www.dw.com\/en\/industrial-ai-germanys-best-chance-to-take-on-us-china\/a-75871997?maca=en-rss-en-bus-2091-rdf&ssl=1\" title=\"A view of Deutsche Telekom's new Industrial AI Cloud data center at the launch in Munich, Germany, on February 5, 2026\" 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<p><span><\/span><\/p>\n<div class=\"a1amioo0 cl16rh cl16rh rdrhdio hh5424a advertisement\"><span class=\"label-top icns9en lefupwu b1r94ulj w128axg5 b1fzgn0z\">Advertisement<\/span><\/div>\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&nbsp;high-performance&nbsp;computing 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&nbsp;just six months to plan, build&nbsp;and launch, compared with&nbsp;the typical 12 to 24&nbsp;months.<\/p>\n<p>The telecom firm&nbsp;repurposed and modernized an existing facility in Munich&#8217;s Tucherpark, with&nbsp;nearly 10,000 NVIDIA Blackwell GPUs \u2014 the high-end chips currently in global short supply. Telekom says the computing power is&nbsp;sufficient for all 450 million EU&nbsp;citizens 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.&nbsp;It 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;&nbsp;Tim H\u00f6ttges, CEO of Deutsche Telekom, said of the launch.&nbsp;&#8220;Our AI factory in Munich is the basis for innovative business models, for industry, start-ups &#8230;&nbsp;the government \u2014&nbsp;and 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\"><\/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><\/video><\/div>\n<h2>Industrial AI taps into Germany&#8217;s core strengths<\/h2>\n<p>The new&nbsp;project 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&nbsp; \u2014 rather than consumer-facing, where&nbsp;the <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/united-states-of-america\/t-19065189\">United States<\/a>&nbsp;and <a class=\"internal-link\" href=\"https:\/\/www.dw.com\/en\/china\/t-18480887\">China<\/a> have the clear lead.<\/p>\n<p><span data-slot-id=\"Article_InContent-1\" class=\"rich-text-ad\"><\/span> <\/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&nbsp;catch-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&nbsp;smaller, specialized AI models that utilize more than a decade of data from Germany&#8217;s small and medium enterprises, known as the Mittelstand,&#8221;&nbsp;Kr\u00fcger told DW.<\/p>\n<p>Germany&#8217;s Mittelstand, widely regarded as the backbone of the country\u2019s economy,&nbsp;has&nbsp;amassed 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&nbsp;being framed as &#8220;trustworthy AI,&#8221;&nbsp;turning 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&nbsp;on 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&nbsp;companies to hand over their data,&nbsp;it will help us&nbsp;stay competitive.&#8221;&nbsp;<\/p>\n<p>The&nbsp;focus 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>&nbsp;expanded partnership with NVIDIA, announced at CES 2026,&nbsp;to develop an Industrial AI Operating System. The company is also&nbsp;embedding AI assistants across factory\u2011automation platforms.<\/p>\n<p>Bosch, meanwhile, is spending&nbsp;$2.9 billion (\u20ac2.4 billion) to roll out&nbsp;AI\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\"><\/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><\/video><\/div>\n<h2>Leaders&#8217;&nbsp;caution may slow AI rollout<\/h2>\n<p>Despite the huge potential of Industrial AI,&nbsp;Germany faces a familiar obstacle in recapturing lost ground in the AI race \u2014 aversion&nbsp;to risk. A common complaint about German business executives&nbsp;is 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&nbsp;try&nbsp;to 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&nbsp;Industrial 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&nbsp;once models deliver&nbsp;causal insights, which industry watchers say&nbsp;could 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&nbsp;patterns and associations rather than understanding why things happen. This&nbsp;limits their usefulness in complex industrial settings.<\/p>\n<p>In the&nbsp;future, Industrial AI could help German manufacturers resolve much larger business crises,&nbsp;like&nbsp;unexpected 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.&nbsp;&#8220;With causal AI models, leaders could&nbsp;test a change of suppliers, reallocation of capacity, or adjust&nbsp;workforce planning to calculate the expected impact.&#8221;<\/p>\n<figure class=\"placeholder-image master_landscape big\"><img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1&w=1600&resize=1600&ssl=1 1600w\" data-format=\"MASTER_LANDSCAPE\" data-id=\"75913283\" fifu-data-src=\"https:\/\/mlmjbqro95r8.i.optimole.com\/cb:bOxR.6a5\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/i2.wp.com\/static.dw.com\/image\/75913283_906.jpg?ssl=1\" 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&nbsp;base 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&nbsp;cheap, reliable parts and raw materials that powered their rise.&nbsp;But 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&nbsp;peak in 2022, German exports to China have declined by nearly a quarter, led by a&nbsp;sharp fall of 66%&nbsp;in auto deliveries, the EU&#8217;s Eurostat data shows.&nbsp;German manufacturers are&nbsp;also facing intense rivalry from China in their other major export markets.<\/p>\n<p>A report published this month by the Rhodium&nbsp;Group, 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-opt-id=758893364  decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1&w=1600&resize=1600&ssl=1 1600w\" data-format=\"MASTER_LANDSCAPE\" data-id=\"75913231\" fifu-data-src=\"https:\/\/i3.wp.com\/static.dw.com\/image\/75913231_906.jpg?ssl=1\" 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&nbsp;launched the country&#8217;s High-Tech Agenda, promising&nbsp;\u20ac18 billion in funding before 2029.&nbsp;It&nbsp;prioritizes AI as one of six strategic technologies, alongside quantum computing, microelectronics, biotech, fusion&nbsp;and 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&nbsp;Munich-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&nbsp;Germany&#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&nbsp;the 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&nbsp;to slowly transform into a service economy, especially digital services.&#8221;<\/p>\n<p><em>Edited by: Srinivas Mazumdaru<\/em><\/p>\n<\/p><\/div>\n<footer class=\"c1jc41xr\">\n<div class=\"a69pihz\">\n<div class=\"author su8j2ma\">\n<div class=\"author-name\"><span class=\"m1ho1h07 l1evdo4u blt0baw s16w0xvi sngcpkw w128axg5 b1fzgn0z\"><a href=\"https:\/\/www.dw.com\/en\/nik-martin\/person-36889052\" class=\"author-link sngcpkw btl76l3 e1eo633p w128axg5 b1fzgn0z\">Nik Martin<\/a><\/span><span class=\"s1czdz88 lxmvniw m4xla6a s16w0xvi rcjjkz7 w128axg5 b1fzgn0z\"> is one of DW&#8217;s team of business reporters.<\/span><\/div>\n<\/div>\n<\/div>\n<div class=\"feedback authors-shown\">\n<div class=\"bp605kw center\">\n<div role=\"button\" data-tracking-name=\"feedback-button\" data-focusdelay=\"600\" id=\"feedback-button\" class=\"hh5424a s1uzn49a t1y9040i m7i2pic e3w9kkf t1ax1i04 cx4rgdt ih9bob8 sngcpkw w128axg5 b1fzgn0z\">Send us your feedback<\/div>\n<\/div>\n<\/div>\n<\/footer>\n<p><span><\/span><\/p>\n<div class=\"a1amioo0 cl16rh cl16rh rdrhdio s18lqusp hh5424a advertisement no-box\"><span class=\"label-top icns9en lefupwu b1r94ulj w128axg5 b1fzgn0z\">Advertisement<\/span><\/div>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\"> <\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\"> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8230; ;s niche \u00e2\u0080\u0094 manufacturing\u00c2\u00a0 \u00e2\u0080\u0094 rather than <span class=\"match\">consumer<\/span>-facing, where\u00c2\u00a0the United States &#8230; partnership with NVIDIA, announced at <span class=\"match\">CES<\/span> 2026,\u00c2\u00a0to develop an Industrial &#8230; producers, providing both a vast <span class=\"match\">consumer<\/span> market and the\u00c2\u00a0cheap, reliable &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-100787","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/100787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=100787"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/100787\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=100787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=100787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=100787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}