AI in the 2025 coalition agreement: what can companies expect now?

The German government is getting serious about AI: Germany is set to become an "AI nation".

The new 2025 coalition agreement places AI at the centre of innovation and economic policy. What can companies expect now? And how they can position themselves strategically?

Change of strategy: AI as a core economic policy project

The new German government is placing AI at the centre of its economic and technology policy strategy. According to the 2025 coalition agreement, Germany is to become Europe's leading AI nation – through targeted investments in infrastructure, innovation-friendly regulation and close cooperation between the state, industry and science.

The new aspect here is the depth of the approach taken in the coalition agreement. AI is no longer just seen as a technology of the future but as an interdisciplinary issue that will decisively change important areas of the interplay between social and economic life. The AI agenda set out in the coalition agreement is therefore far more than just a digital lighthouse project. Instead it is intended to ensure structural modernisation and simultaneously secure Germany's competitiveness in an international context.

Gigafactories, real-world labs, regulation: the specific plans

The coalition government is planning "massive investments" in digital infrastructure and the expansion of AI capacities. The key measures at a glance:

• Establishing a national AI gigafactory: A pool of at least 100,000 graphics processors is to be set up to provide research institutions and universities with access to high-performance computing centres.
• Setting up AI real-world labs: Germany is to become a top location for digital technologies of the future. AI real-world labs are therefore going to be set up where innovative AI applications can be trialled under real-life conditions. The aim is to support companies with the development of AI, particularly SMEs and start-ups.
• Innovation-friendly implementation of the AI Act: One of the aims of the new German government is to reduce the burdens on the economy caused by the regulatory requirements of the AI Act. It plans to implement the AI Act in Germany in an innovation-friendly manner with minimal bureaucracy and to prevent fragmentation of national market supervision.
• AI in public administration and the justice system: The German government is planning to increase the use of AI in public administration to make administrative processes faster, automatic and more efficient. AI is also set to be used in the justice system to a much greater extent than it is currently.
• Culture & AI: The German government is planning a cross-state strategy which takes advantage of the great cultural and economic potential of AI while simultaneously protecting copyrights and ensuring that AI-generated content is always identified as such.

National AI agenda in line with the EU agenda

The German government's AI strategy is closely linked to the measures being taken by the European Commission. Many of the initiatives set out in the coalition agreement – such as the establishment of AI gigafactories, investments in computing capacities or the creation of real-world labs – are almost identical to EU strategies in documents like the "AI Continent Action Plan" published on 9 April 2025. The German government is therefore clearly aligning itself with the European guidelines. This equates to legal consistency for companies and potentially additional access to funding.

AI and law: growing demands on companies – not only due to the AI Act

The coalition agreement presents companies not only with technological opportunities but also with new legal challenges. The implementation of the AI Act is particularly complex. In future, companies will have to determine exactly which AI systems they use for which purposes and which of the risk classes regulated in the AI Act the AI systems fall under. Strict requirements concerning transparency, data quality and risk assessment apply to the risk class "high-risk systems". Such AI systems may only be placed on the market or put into operation in the EU after a conformity assessment procedure has been carried out.

Another legal focus is data protection: although the German government is focusing on openness to innovation, there is a considerable amount of tension between data protection and the use of AI, particularly in sensitive areas such as human resources or the healthcare sector. Companies will therefore have to carry out data protection checks every time before using AI in order to ensure that AI systems are used in compliance with data protection regulations.

The training of employees in organisations that use AI systems is also a key factor. Organisations must ensure that their employees have the necessary AI skills, including basic knowledge of important legal issues related to AI, such as data protection.

In addition, there is likely to be more active market supervision. Concerns have already been raised that medium-sized providers in particular could be disadvantaged by overly complex requirements. At the same time, there is a risk that parallel regulatory levels at EU and federal level will create a regulatory framework that is difficult to navigate. The real challenge therefore lies not so much in the objective of the regulation but in its practical implementation – particularly in view of the multi-track nature of EU and federal law.

What should companies do now?

The German government's course is clear: AI will be heavily regulated in the coming years but it will be pushed forward with just as much force. Companies are to play an active role in shaping this change – strategically, legally and technologically.

Now is the right time for companies to develop their own AI roadmaps: Where is the potential? Which applications are realistic? Which partners – internal and external – will be needed? Internal structures should also be made fit for new compliance requirements – these include everything from risk analyses and data protection concepts to establishing an internal contact point for AI issues.

A third field of action concerns the funding landscape. The announced programmes for computing capacities, pilot projects and further training will soon be exhausted. Early action here can secure decisive competitive advantages. Last but not least, it is worth taking a look at the emerging real-world labs which make it possible to trial new AI solutions under real-life conditions.

AI finally acknowledged as a central key technology

The new German government is not only acknowledging AI as a technology of the future but is also clearly and visibly positioning it as a central field of action in the 2025 coalition agreement. Targeted funding measures – such as the establishment of a national AI gigafactory or the creation of real-world labs – are paving the way for modern and innovation-driven development.

In addition, the increased support for start-ups and innovations is to make Germany more attractive and competitive as a business location. If these plans are successfully implemented, Germany is set for promising development and a bright future.