German Companies Navigate Rising AI Governance and Compliance Challenges in 2026

German and international companies are facing escalating challenges in managing AI technologies, with significant implications for governance, security, and compliance as AI adoption surges across industries.

AI usage in database management has more than doubled within a year, rising from 15% to 44%, reflecting widespread recognition of AI's benefits in automation, performance, and cost efficiency. According to the State of the Database Landscape Report 2026 by Redgate, over 80% of surveyed companies plan to incorporate additional AI tools. This growing complexity—reflected by the average company's utilization of multiple database platforms and 73% operating hybrid systems—adds governance difficulties and increases security risks. While 64% prioritize data security and protection, 58% are willing to accept greater security risks for efficiency gains. Companies without AI usage reveal heightened security concerns; 73% report significant apprehension about AI's impact. Compliance difficulties are on the rise as well, growing from 32% to 40% of companies viewing it as a challenge.

This rapid adoption comes amid a shortage of skilled AI professionals, with 49% of respondents indicating fewer new hires due to available AI capabilities, potentially constraining long-term talent growth. Oliver Stein, Managing Director DACH at Redgate, stressed the need for cultural and operational shifts in response to the increasing database complexity and AI's pace. He advocated for scalable AI-integrated solutions emphasizing governance and transparency.

Meanwhile, the maturation of large language model operations (LLMOps) is becoming a critical corporate function. BornCity reports that 2026 marks a turning point, with companies transitioning AI from experimentation to essential operations needing comprehensive control mechanisms. AI observability platforms are gaining recognition as an industry standard, with Gartner forecasting a jump from 18% usage in 2025 to 60% in 2028 among software teams. Openlayer, identified by Gartner as a market leader, focuses on uniting development and production, especially within highly regulated sectors such as finance and healthcare.

In addition, Portkey raised €15 million to expand its AI gateway solutions, managing reliability and governance for over 500 billion tokens daily. The EU AI Regulation imposes stringent obligations on AI developers and operators, mandating detailed compliance and documentation. The rise of "Guardrails"—strict operational guidelines—reflects the sector's move toward greater transparency and accountability. Industry events in 2026 emphasize AI evaluation and observability, underscoring that partial transparency is no longer acceptable.

Together, these developments outline a critical phase for AI governance in German companies, highlighting the urgent need for specialized expertise, robust observability tools, and regulatory adherence to safely scale AI technologies in business operations.