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German startups lead the way in innovative technologies: Almost 50% already use AI

08/15/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

In terms of technology adoption and innovation, German startups play a decisive role, as a recent study by the digital association Bitkom shows. The survey of 203 technology startups from Germany makes it clear that artificial intelligence (AI) and Big Data occupy the top positions. Currently, 53 percent of the startups surveyed use Big Data and data analytics, while 49 percent rely on AI. These trends are expected to continue to grow as they top the list of technologies that startups are considering - 39 percent are thinking about adopting AI, and 31 percent intend to use Big Data and data analytics.

Compared to the overall economy, startups clearly set themselves apart from established companies. Across the economy, only 15 percent are using AI, while another 25 percent have plans to use it or are discussing it. For data analytics, the share in the overall economy is 39 percent, and for discussions about it, 37 percent.

Bitkom President Ralf Wintergerst welcomes this development and predicts that startups will help make AI and Big Data more accessible to small businesses and SMEs. He emphasizes that these technologies will not only be used, but also further developed to bring new products and services to market.

To promote the spread of AI applications from the startup sector, Bitkom points to the AI voucher for small and medium-sized enterprises envisaged in the German government's startup strategy.

In addition, technologies such as the Internet of Things (IoT), 5G and 3D printing are emerging on the startup scene.However, virtual reality (VR), augmented reality (AR), blockchain and the metaverse are still in the development and discussion phase.While only 8 percent of startups are currently using VR/AR, 22 percent are planning or discussing its use. The situation is similar for Blockchain, which is used by 5 percent of startups but planned or discussed by 22 percent.For the Metaverse, 3 percent of startups are already users, while 15 percent are planning or discussing its use.

Wintergerst emphasizes that while technologies such as the Metaverse, VR/AR and blockchain have been discussed for some time, their breakthrough has yet to occur. Companies are encouraged to closely follow developments in the startup space and gain their own experience with these technologies early on.

Other technologies such as drones, robotics, autonomous driving and quantum computing play a lesser role in the German startup scene. Nevertheless, some startups are also discussing or planning future use here.

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