Artificial Intelligence propels German tech start-ups, sparking apprehension
In a recent survey conducted by Bitkom Research, it has been revealed that the main trend among tech start-ups in Germany related to Artificial Intelligence (AI) is cautious optimism amid a challenging financing environment.
Financing Challenges
The survey highlights several financing challenges faced by German tech start-ups. A significant barrier is the capital shortage and investor restraint, with many start-ups fearing they might have to move to other countries (such as the USA, other EU countries, or non-EU European countries) where funding may be more accessible.
Another issue is the scarcity of venture capital. Only 23% of start-ups believe Germany currently offers sufficient venture capital, contributing to uncertainty. Despite this, over half (53%) of start-ups are open to Initial Public Offerings (IPOs), reflecting a search for financing alternatives.
AI Adoption and Readiness
While Germany scores high on general digital literacy, Bitkom’s data suggests a gap in AI-specific readiness. About 82% of surveyed start-ups currently use AI, a significant increase from 49% in 2023. AI is used equally to support business operations (63%) and to improve products or services (62%). Among AI-using start-ups, 87% also use generative AI.
However, the survey indicates that start-ups may be struggling to fully harness AI capabilities or integrate AI at scale, despite interest and potential growth in AI sectors.
Regulatory Concerns
One of the concerns raised by the surveyed start-ups is the potential impact of the AI Act. Forty-five percent of respondents believe the AI Act will restrict their start-up's use or development of AI. Sixty-three percent are concerned that excessive European AI regulation could hinder the development of powerful AI solutions in the EU.
Looking Ahead
Despite the challenges, 71% of start-ups hope that Europe can still achieve a leading position in the global AI competition despite the AI Act. Almost three-quarters (74%) of start-ups have found that companies with AI integration in their products find it easier to secure financing.
In summary, German AI tech start-ups face a financing crunch and cautious investor climate but remain confident and open to new funding avenues like IPOs. The adoption and readiness for AI are growing but still lag relative to overall digital literacy, highlighting a developmental challenge alongside financial hurdles.
[1] Bitkom Research survey, conducted online, polling 152 German tech start-ups from the 12th to the 21st calendar week of 2025. [2] Additional findings and insights from the survey. [3] Broader concern in Germany about overdependence on foreign cloud providers. [4] German cities advancing in digital transformation, presenting opportunities for AI-driven "smart city" solutions. [5] Bitkom’s data suggesting a gap in AI-specific readiness among German tech start-ups.
Technology and artificial-intelligence are key areas of focus for German tech start-ups, as evidenced by the significant increase in AI adoption (82%) and the use of generative AI (87%) among these start-ups. However, the financing challenges and cautious investor climate could impede their ability to fully harness AI capabilities or integrate AI at scale.
