Commission Competition and AI: Many wishes amid dark clouds

Contents

The committee met five times and has produced 20 recommendations on how Germany can catch up in the use of artificial intelligence – and perhaps even overtake in certain areas. However, the scope of the individual proposals varies greatly. The desire for targeted promotion of German and European solutions, as well as reliable framework conditions, is likely to find consensus in German politics. However, details quickly become contentious.

The commission calls, among other things, for public bodies to “be available as anchor customers for European AI infrastructure that meets European standards.” But this is currently a major political issue: Is it legally permissible for the state to act as an anchor customer, specifically favoring European or German companies? “Whoever doesn't control the stack doesn't control their value creation in the end,” says Digital Minister Karsten Wildberger (CDU). The state must therefore act as an anchor customer to establish sovereignty. “We have already set a great deal in motion,” says the minister, whom Friedrich Merz brought into office as a surprise coup a year ago. Among other things, Wildberger sees a tender for a sovereign, secure administrative cloud as a positive achievement. However, a consortium around Google has just filed a complaint against the awarding of this contract, a process that is said to have played no role in the Competition and AI Commission.

From Tech Toy to Power Structure

The importance of AI as a factor is also illustrated by a statement from the Federal Minister for Economic Affairs today. “What was a toy of the tech scene yesterday is a power structure of global politics today,” says Katherina Reiche, also CDU. “We are not experiencing a normal technological leap,” says Reiche. By 2026, six new so-called unicorns will have emerged, and otherwise, things are on a good track. It's about not remaining in foreign spheres but developing capabilities ourselves. This includes a commission recommendation: 10 percent of the special fund for the Bundeswehr should be used for data centers, AI, and innovative technologies, a view she shares with Federal Minister of Defense Boris Pistorius (SPD), says Reiche.

Rolf Schumann, Co-CEO at Schwarz Digits, represents the founding era. With large language models, the game is already lost, says Schumann, but Germany can play a significant role in the next wave. “This is the fuel of AI,” says Schumann. Those who have understood the laws of physics, for example, can draw the right conclusions from them. And that's precisely where the opportunities lie: “If your knowledge and IP can be exchanged securely, a power will emanate from here that you can't even imagine.” It's about an AI made in Germany. He also sees regulations as a factor: “Regulation becomes a bestseller if you use it correctly.”

The Manager and the Minister

Apparently, there is little room for maneuver between manager Schumann and ex-manager Wildberger, who meet almost daily. The latter is primarily concerned with scalability, how to become world market leaders from patents and startups. AI is a lever to play at the forefront, believes Wildberger. Therefore, Germany must become technologically leading. “AI will be the operating system of the economy, society, and public administration. And then we should ensure that it is our operating system,” says Schumann. Germany also has everything necessary. These are not castles in the air being discussed, but real data centers, models, and developments, says Schumann. The minister nods in agreement.

Future Capital Fund Based on Singapore Model

Indeed, the conclusions of the “Competition and AI” commission presented today concern fair framework conditions, such as regulatory ones. Here, both the federal legislator and the European legislator are strongly called upon when it comes to how European providers may be treated differently, for example, in public procurement. But other factors, such as an independently managed state fund modeled after Singapore for “German Future Capital,” are also among the ideas deemed good. AI in health and care applications should be particularly prioritized as a model area.

The members of the commission deliberately did not “re-discuss the AI revolution,” emphasizes competition lawyer Rupprecht Podszun, one of the co-chairs of the commission. “We tried to set priorities that must now be addressed.” Whether this will actually happen or is responsible is now up to the federal government and the parliaments to decide.

()