German Chancellor Friedrich Merz called for an accelerated push to develop domestic artificial intelligence capabilities, warning that Germany and Europe risk losing control over critical technologies as competition in the global AI industry intensifies.
Speaking at a digital technology conference in Berlin on Monday, Merz said European governments and businesses must strengthen their technological independence and reduce reliance on foreign providers, according to Reuters.
The chancellor described the ability to shape and control artificial intelligence as a fundamental strategic concern, arguing that Europe needs greater influence over the systems increasingly driving economic activity and public services.
His remarks reflect growing pressure on Europe’s largest economy to modernize its digital infrastructure while competing with countries that have moved more rapidly to commercialize AI.
Germany Confronts Digital Modernization Challenges
Merz’s government has pledged to accelerate the adoption of digital technologies across industry and public administration, building on Germany’s national artificial intelligence strategy introduced in 2018.
Despite that early policy commitment, Germany continues to face structural obstacles that could limit its ability to benefit from advances in AI.
According to Reuters, the Munich-based Ifo economic research institute has identified persistent weaknesses in Germany’s digital development, including government processes that remain heavily dependent on paperwork, insufficiently digitized public services and shortages of qualified technology workers.
The country’s relatively small high-technology sector also presents challenges for building a competitive domestic AI industry.
These shortcomings have raised questions about whether Germany can translate its established industrial capabilities into leadership in emerging digital technologies.
Merz acknowledged the need for substantial technological and organizational changes, emphasizing that modernization must extend beyond individual industries to encompass government operations and the broader economy.
Europe Seeks Greater Control Over AI Supply Chains
A central element of Merz’s message was the importance of maintaining European influence throughout the technology supply chain.
According to Reuters, the chancellor called for independent capabilities spanning hardware, software and other essential components of artificial intelligence systems.
The objective is to prevent European businesses and governments from becoming excessively dependent on technology developed and controlled outside the region.
Such concerns have become increasingly important as AI infrastructure, computing capacity and advanced software emerge as strategic economic assets.
Merz nevertheless indicated that technological independence should not mean withdrawing from international cooperation.
Germany intends to work with countries that share its approach to technological development, including France and Canada, Reuters reported.
That cooperation could help European governments diversify technology partnerships while expanding their own research and industrial capabilities.
Industrial Strengths Offer Potential Advantage
Although Germany faces significant challenges in digital services and advanced technology development, Merz pointed to the country’s established engineering and manufacturing industries as potential sources of competitive strength.
Germany’s expertise in industrial machinery, engineering and electronics could provide opportunities to develop AI applications tailored to manufacturing and other industrial operations.
A separate report by German news agency dpa-AFX said Merz outlined a strategy combining near-term support for commercially useful industrial AI systems with longer-term research into emerging technologies, including AI integrated with physical machines and robotics.
The approach reflects an effort to build on Germany’s traditional industrial strengths rather than compete exclusively in the development of general-purpose AI systems.
Merz’s government is also pursuing a broader vision of strengthening Germany’s position in artificial intelligence by 2030, according to dpa-AFX.
Economic Competitiveness at Stake
The chancellor’s comments underscore the growing connection between technological capability, economic competitiveness and national autonomy.
For Germany, the challenge involves not only developing AI technologies but also ensuring that businesses, public institutions and workers can adopt them effectively.
Modernizing administrative systems, expanding technical skills and improving digital infrastructure will be important to achieving those goals, given the weaknesses identified by economic researchers.
The government’s digital summit, held under the theme Shaping AI: Safe, Sovereign, Competitive, placed those issues at the center of discussions involving policymakers and business representatives, according to the German chancellery.
Source: Reuters
