German Companies Show Strong Preference for Domestic AI Providers Amid Digital Sovereignty Push

A recent survey conducted by the digital association Bitkom reveals a robust preference among German companies for artificial intelligence (AI) applications from domestic providers. According to the survey of 603 companies with at least 20 employees, 96% of respondents favor AI solutions from German firms. However, 64% of these companies are not willing to compromise on price or functionality to utilize German AI, indicating that quality and cost remain critical considerations.

The survey, published as the German government’s Digital Summit commenced, highlights that 87% of German companies consider the country of origin an important factor when selecting AI providers. There has also been a notable shift in preferences toward European providers: support for French AI increased from 38% to 46%, and preference for AI from other EU countries rose from 40% to 43%. In contrast, preference for US AI providers declined significantly from 51% to 41%, while Chinese AI dropped from 18% to 12% compared to the previous year.

Bitkom President Dr. Ralf Wintergerst emphasized the importance of Germany and Europe not only being users of AI technologies but also becoming key providers. He called for sufficient computing capacities, better data access, innovation-friendly regulations, and governmental leadership to strengthen the domestic and European AI sectors.

The demand for enhanced digital sovereignty is strong, with 64% of companies stating that Germany needs more hyperscalers—large cloud service providers—to ensure competitive advantages. Nearly all surveyed companies (97%) advocate for increased government investment in key technologies to drive innovation and maintain Germany’s position in global markets.

Wintergerst concluded, “Digital sovereignty depends heavily on Germany’s ability to develop critical technologies and successfully position them internationally.” The findings signal a clear call from the German business community for both robust domestic AI offerings and government-backed initiatives to safeguard and advance the country’s technological independence.