German Cabinet Approves AI Market Surveillance and Innovation Promotion Act

The German Federal Cabinet has approved the AI Market Surveillance and Innovation Promotion Act (KI-MIG), the national implementation law for the European AI Regulation set to take effect from August 2, 2024. This legislation establishes a streamlined and innovation-friendly oversight framework for AI systems across Germany, aiming to foster economic growth while avoiding bureaucratic complexity.

The Bundesnetzagentur (Federal Network Agency) is designated as the central coordinating and competence authority for AI oversight. Instead of creating new bureaucratic bodies, KI-MIG relies on existing structures and market surveillance authorities for enforcement. This hybrid oversight approach balances regulation with a strong innovation mandate, including the introduction of a KI-Service Desk to support SMEs and startups, a regulatory sandbox for testing new AI technologies, and specialized networking and training programs.

Dr. Karsten Wildberger of the Federal Ministry for Digital and Transport emphasized the focus on leveraging existing expertise in the Bundesnetzagentur to facilitate clear regulatory oversight without stifling innovation. Concurrently, the ministry is advocating for further exemptions and deadline extensions at the EU level to reduce regulatory burdens and avoid overlapping regulations.

Bitkom President Ralf Wintergerst highlighted the complex administrative landscape in Germany, with responsibilities split across federal and state authorities, underscoring the necessity of effective collaboration and streamlined processes among agencies. He stressed the need for adequate staffing—over 60 new positions are proposed to ensure efficient market monitoring and coordination. Wintergerst also warned that delays in the independent verification of high-risk AI systems could hinder innovation, referencing challenges seen with the Medical Devices Regulation. He advocated for innovation-friendly AI real laboratories, which would help companies develop AI solutions with low entry barriers and rapid turnaround times.

With the draft law now progressing to the Bundesrat and Bundestag for further consideration, Germany is taking significant steps to align with the EU AI Regulation while prioritizing innovation and economic vitality.