Artificial Intelligence (AI) is incredibly important in the world today. It has the potential to revolutionize industries, increase efficiency, and improve quality of life. Throughout these years, the fast growing pace of the rising demand for artificial intelligence technology across various industries such as retail, healthcare, food and beverages, automotive, and logistics is significantly contributing towards the growth of the global artificial intelligence market. Europe is definitely one of the biggest regions for AI application, especially well-developed countries such as Germany. Also, Governments and businesses in Asia are investing heavily in AI research, development, and implementation, with countries such as China, Japan, and Singapore leading the way in adopting AI technologies. AI is a significant growing sector on both sides.
Germany as the power house for AI development and application
In 2018, The German government has set aside around 3 billion euros for research and development of artificial intelligence, as Europe’s economic powerhouse seeks to close a gap with the US and Asia. The sum to be spent up to 2025, which allows Germany to vastly develop and to embed AI into their already well-established infrastructure.
The German Federal Government also has research and innovation support programmes in targeted areas with dedicated AI policies in specific sectors and geographical areas. The updated AI strategy include healthcare, environment and climate, aerospace, and mobility.
The German Federal Government has so far funded 22 projects for up to 36 months over the period 2020-2023 with a total funding amount of approximately EUR 50 million. The projects will investigate the benefits of smart sensors, smart data use, smart decision support systems and smart communication in clinically relevant application scenarios.
Eye-Catching Growth and High Spending in Europe and DACH Region
AI spending in Europe will post a compound annual growth rate (CAGR) of 29.6% between 2021 and 2026, compared with the worldwide CAGR of 27.0%. Growth in Europe is being driven by Western and Central and Eastern Europe, with spending expected to reach more than $70 billion in 2026.
Also according to International Data Corporation’s (IDC) Worldwide ICT Spending Guide: Enterprise and SMB by Industry, ICT spending in the DACH region (Germany, Austria and Switzerland) will reach $275 billion in 2023 and will surpass $330 billion by 2026. With a 6.4% compound annual growth rate (CAGR) for 2021–2026, growth in ICT spending in the region will exceed the European average (5.4%). All data shows Germany is determined to set AI as main focus of development.
Asia is a rapid and promising growing AI region funded by Governments and Businesses
The landscape of artificial intelligence (AI), research and commercialization is increasingly broadening to Asia. From Japan to Singapore, AI startup and research clusters are emerging rapidly, a harbinger of the technological leapfrog that is to come.
China now leads the world in annual R&D spending with nearly $275 billion (just above 2% of GDP), but other Asian nations are also above the 2% mark, including Japan (roughly $176 billion), South Korea ($70 billion) and Singapore ($13 billion). While these figures capture a wide range of sectors from biotech to materials to computer science, all are driven by AI.
Into Daily Lives: AI as a Fundamental Force for a Better Life
As a place which contains 61% of the world population, Asia’s strong demand for AI is the mother of innovation and investment. Japan’s large-scale push into IoT sensor deployment across Asia is a part of its AI strategy, which given the data it will generate. As the first country with widespread 5G deployment, South Korea has an edge in gathering data that will deepen its AI prowess in areas such as smart manufacturing, immersive gaming and autonomous vehicles.
Singapore even takes it a bit further into “AI governance”. At the 2020 World Economic Forum in Davos, the Minister for Communications and Information presented the country’s guidelines for responsibly implementing. Southeast Asia is also a hot spot for AI development. Foreign companies are putting AI to work to bring automation to the industrial landscape of Indonesia, Malaysia, Thailand and Vietnam. Venture capital funds invested over $3.4 billion in ASEAN in the first half of 2019.
Germany is a leader in the development and application of AI. The country’s strong technology infrastructure, skilled workforce, and supportive business environment make it an ideal location for AI startups and established companies alike. As for Asia, with strong demands, heavy investments and pioneer experiences, more developments and innovations are expecting to come. With deeper collaboration between Asia and Berlin, the potential of AI can be expected to reach the fullest. In AsiaBerlin Summit 2023, more insights from experts and speakers. Don’t miss out any first hand information, to catch on the fast-pacing trend of AI in Asia and Germany!
- A European approach to artificial intelligence
- European AI market will grow by 25% in the next five years, IDC
- By 2026, 30% of Artificial Intelligence Models in Asia/Pacific* Will Incorporate Multiple Modalities of Data to Improve Learning Effectiveness, IDC Predicts
- Germany plans 3 billion in AI investment: government paper
- ICT Spending in Germany, Austria and Switzerland Will Reach $275 Billion This Year, as Investment Focus Shifts to AI, Says IDC
- Where Asia is Taking The World with AI
- AI Trends: the rise of artificial intelligence in Asia Pacific
- Asia: Becoming a Powerhouse through AI Adoption