In 2018, the German startup industry saw 218 new companies founded in the field of artificial intelligence, according to a study by management consultancy Roland Berger. A total of $273 million was invested. This figure doubled in 2019: Roland Berger estimates that AI startups raised $510 million last year.
Nevertheless, there is still much room for improvement in Germany when it comes to artificial intelligence (AI), as a comparison with other European countries shows. Germany ranks only fourth in Europe in terms of investment. France leads the field with $1.3 billion, followed by Great Britain with $1.2 billion, and Israel with $903 million.
Twice as many AI startups in the UK
In terms of new startups in 2018 (Roland Berger does not provide figures for 2019), the UK leads the field with 590 new AI startups, well ahead of France with 235. Germany is just behind with 218 startups. Israel ranks fourth with 189 AI startups. Jochen Ditsche, partner of Roland Berger, says:
"Many developments are very encouraging, as they show that the European AI ecosystem continues to grow strongly. However, compared to China and the US, the European AI ecosystem is too fragmented and suffers from a lack of integration."
His colleague Ashok Kaul warns:
"Europe must not continue to get bogged down in the minutiae. We need a strategy that ensures the free flow of data, creates synergies between countries, and thus balances the different strengths and weaknesses in patents, infrastructure, investment capacity, and skilled workers."
Domestic investors play the main role
France, Great Britain, Israel, and Germany accounted for a good 80 percent of investments between 2009 and 2019. Domestic investors play a major role in all three countries: 73.2 percent of investments in France come from within the country, compared to 65.6 percent in Great Britain. Germany, with 63.55 percent of domestic capital, is still the most open to foreign investors. These investors come from the United States (14.04 percent) and Great Britain (5.42 percent). Investing in German AI startups does not currently appear to be of interest to the French (0.99 percent) and Chinese (1.72 percent).
American investors are also most strongly represented in France (7.47 percent) and Great Britain (17.53 percent). Chinese investors have played a negligible role here as well (France 0.52 percent, Great Britain 0.49 percent).
Most patents come from the USA
The study also examines patent applications in the AI field. With 16,497 patents filed between 2015 and 2019, the majority originated in the United States. Europe (2,595 patents) and China (2,517 patents) lag far behind.
Within Europe, the most prolific patent applicants come from Great Britain, where 623 patents were filed during the period under review. Germany ranks second with 530 patents, followed by France (263) and Ireland (228). Israel was not included in these statistics.
About the study
Roland Berger published the international study "The Road to AI – Investment Dynamics in the European Ecosystem" in collaboration with France Digitale. The association claims to comprise 1,400 digital startups and more than 100 investors. The study examined data from the 28 members of the European Union (including the United Kingdom), as well as Norway, Switzerland, and Israel. Third-party studies were also evaluated.
