GERMANY

ARTIFICIAL INTELLIGENCE

In November 2018 Germany adopted a national AI strategy ‘AI Made in Germany’ developed by the Federal Ministry for Economic Affairs and Energy, the Federal Ministry of Education and Research, and the Federal Ministry of Labour and Social Affairs.

The strategy pursues the following three objectives:

• making Germany and Europe global leaders in the development and use of AI technologies, and securing Germany’s competitiveness in the future;
• safeguarding the responsible development and use of AI which serves the good of society; and,
• integrating AI in society in ethical, legal, cultural, and institutional terms in the context of a broad societal dialogue and active political measures

For the implementation of the strategy, the Federal Government of Germany intends to provide around EUR 3 billion for the period 2019-2025.

The German government also tasked a new Data Ethics Commission with producing guidelines for the development and use of AI, which were published in 2019. The commission called for AI to be designed safely and securely, to respect human rights and freedoms, protect democracy, and avoid bias and discrimination. It also argues that lethal autonomous weapons should be banned outright.

In 2017, the Federal Ministry of Education and Research launched a government aid campaign in the field of machine learning intended to improve training and professional education in machine learning, to support basic research, and to create internationally visible machine learning competence centres throughout the country. The ministry funded the Platform Learning Systems, an expert platform for AI running between 2017 to 2022. In 2017, the German Federal Ministry of Transport and Digital Infrastructure published ethical guidelines for self-driving cars in a report titled Ethics Commission: Automated and Connected Driving, which defined 20 ethical rules for automated and connected vehicular traffic.

The German national AI strategy is focused on industry, research, and development to ensure that Germany is competitive in the future. It does not include cybersecurity considerations, which are stated in the German National Cyber Security Strategy (NCSS) from 2016. The strategy outlines a comprehensive approach to cybersecurity, as well as a national defence strategy, which for the first time has emphasised the strategic military dimension of cybersecurity within a hybrid warfare context.

In the military arena, the Federal Ministry of Defense has established the Cyber and Information Technologies Department and the Cyber and Information Space Command, responsible for strategic military cyber planning and for protecting the army’s networks and IT systems. It is likely that both bodies also cover issues related to the implications of AI for the military and defence sector.

Germany has also taken part in international dialogues on AI-related issues. Specifically, within the UN Group of Governmental Experts on emerging technologies in the area of lethal autonomous weapons (GGE on LAWS), Germany has advocated for a clear affirmation of human accountability and control over all future lethal weapons systems. In addition, Germany deems that international law, in particular international humanitarian law, fully applies to autonomous weapons systems as it would to any other weapons system.

BLOCKCHAIN

Germany approved its Blockchain Strategy in September 2019 as a result of its broad consultations with the industry. The main priorities of the German Blockchain Strategy are:

• Digital Identities. The German government will launch a pilot project for a blockchain-based digital identity in the near future. It will also explore whether blockchain-based digital identities can be designed to comply with legal data protection requirements.
• Smart machines and contracts. Germany is planning to tender for research proposals on digital identification and verification for autonomous gadgets, as well as the use of DLT and smart contracts for maintaining standards and certification.
• Faster securities. The strategy restates Germany’s plan to legitimise DLT-based securities, allowing the securities to exist in a purely digital form, including on blockchain. A draft law on digital securities was proposed at the end of 2019.
• No stablecoins. While no cryptocurrency was named in the document as an object for regulation, the strategy states that the German government will work to ensure that private sector-issued stablecoins do not become an alternative to state currencies. The government will work with Germany’s central bank – the Deutsche Bundesbank – on a form of central bank digital currency.

QUANTUM COMPUTING

Germany has a strong position in quantum technologies, with significant expertise available in the research community, particularly in the field of quantum physics. German research and industry also have an internationally competitive position in terms of key enabling technologies (microelectronics, nanotechnology, and superconductors) for building quantum technological applications. Based on this, the Federal Ministry for Research and Education published the Framework Programme for Quantum Technologies in 2019. It outlines the starting situation and lists goals and specific initiatives that will go on until 2022, and aims to bring quantum technologies from the research phase to market ready applications. The main goals of the programme are:

• To build on Germany’s strong position in quantum physics research and pave the way towards applications using quantum technologies;
• To establish the framework conditions to prepare for new economic opportunities and markets;
• To build a solid basis for a leading role in industrial use of quantum technologies;
• To work with international partners to ensure the security and autonomy of Germany and Europe; and,
• To inform the population of Germany and involve them in the journey towards a new key technology.

The German government has allocated a total of EUR 650 million through 2022 for research on quantum technologies.

Now, the IBM Q Network will have a major, new European hub for quantum computing in Germany, in cooperation with research agency Fraunhofer Gesellschaft. The hub will focus on developing a unique concentration of quantum skills in Germany and build a community of academics, researchers, developers, IT professionals, and industry experts around the technology.

5G

In 2016, the German Federal Government launched its 5G Initiative for the country , a framework for action to support the deployment of 5G networks and the development of 5G applications at an early stage. Based on the initiative, Germany presented a five point plan – ‘5G Strategy for Germany’ – in September 2019, aiming for full adoption of 5G by 2025.

The strategy describes the context and the fields of action regarding the rollout of 5G networks in Germany through 2025. Specific measures are to be taken in five fields of action:

• Step up network rollout;
• Make frequencies available based on demand;
• Promote cooperation between telecommunications and user industries; take account of requirements, ideas, and solutions of the affected user industries in standardisation;
• Conduct targeted and coordinated research; and,
• Initiate 5G in towns and cities early on.

In implementing the 5G rollout, German telecommunications operators secured 5G spectrum licenses in June 2019, and started an aggressive commercial strategy to launch 5G services in the country’s main urban areas. Germany’s Federal Network Agency (Bundesnetzagentur) had announced the results of an auction process through which it had awarded mobile spectrum in the 2 GHz and 3.6 GHz bands. At that time, the government confirmed it will raise a total of 6.5 billion EUR for 420 megahertz of 5G spectrum.

In November 2019, Germany’s Federal Ministry for Economic Affairs and Energy opened a process through which private companies will be able to apply for private 5G licenses, available in the 3.7GHz to 3.8GHz range, and cover limited areas.

By the end of 2020, the number of 5G sites is expected to be nearly 1 500. During 2020, Deutsche Telekom said it aims to provide 5G technology in the country’s 16 state capital cities.

In the context of the controversy related to potential security risks generated by the involvement of Chinese companies in national 5G deployment plans, German Chancellor Angela Merkel argued against a ban on Chinese suppliers, and indicated a preference for an approach in which all suppliers are subject to stronger security requirements. As of March 2020, the federal parliament is debating a strategy paper on 5G policy issues, while the government is expected to finalise its 5G policy in the coming months.