More and more young German companies are using artificial intelligence (AI) in their products and services — a total of 62 percent more than in 2018.
These are increasingly concentrated in the two AI hubs of Berlin and Munich, with only a few AI startups emerging in traditional SME regions such as Baden-Württemberg or North Rhine-Westphalia. Since 2009, around €1.2 billion has been invested in AI startups in Germany—however, compared to other countries, the investment volume remains low. For example, the Chinese startup SenseTime alone has received more than €2.2 billion from investors.
More and more German AI startups
The AppliedAI initiative of UnternehmerTUM, Europe's leading center for startups and innovation, regularly publishes an update of its map, first created in 2018. This map includes the most important AI startups in Germany, selected by a jury, with the aim of documenting relevant developments in the field of AI.
"While 132 young companies used AI on a significant scale in 2018 and became part of the AI landscape, this year the number is already 214 — an increase of 62 percent,"
presents Immanuel Schwall, AI Engineer and project manager of the AI map.
In addition, industry-specific developments can be identified: While only 3.8 percent of all AI startups were in the manufacturing and industrial sector in 2018, this figure rose to 5.6 percent in 2019. The development is even more pronounced in the transport and mobility sector: Here, the share rose from 6.1 to 9.3 percent.
“The fact that startups are increasingly focusing on German core industries is good news,”
says Andreas Liebl, Managing Director of AppliedAI.
“This development is the basis for ensuring that established companies in this sector do not lose touch internationally.”
Average investment volume per AI startup in Munich almost twice as high as in Berlin
A few geographical hubs continue to dominate the AI scene. The concentration on Berlin and Munich, in particular, is increasing: 86 AI startups (40.2 percent) were based in Berlin in 2019, making the capital the national leader [2018: 51 (+68.6 percent). Munich follows in second place with 57 startups (26.6 percent) [2018: 31 (+83.9 percent)]. The average investment volume in Munich, at €6.3 million, is almost twice as high (a factor of 1.8) as in the capital at €3.41 million. Karlsruhe follows at a considerable distance in third place with nine AI startups, thus overtaking Hamburg with eight startups this year.
