Germany is investing significantly more in artificial intelligence – and generative AI is driving growth especially strongly. In 2026, total spending on AI (software, services, and hardware) is expected to grow by 48 percent to 28.7 billion euros, following 19.4 billion euros in the previous year 2025.

Generative AI is developing particularly dynamically, with systems such as ChatGPT, Claude, Microsoft Copilot, or Google Gemini. Spending on generative AI is expected to double in 2026 to 11.5 billion euros, after 5.7 billion euros in 2025. Thus, 40 percent of all AI spending in Germany already falls on generative AI applications.

When broken down by segment, it shows that AI software has the largest share and is growing the strongest. AI software spending is expected to rise by 65 percent in 2026 to 16.0 billion euros. AI-related services are expected to increase by 30 percent to 6.8 billion euros, while hardware spending is expected to grow by 32 percent to 5.8 billion euros.

Market researchers at IDC also expect a significant increase for the coming year. For 2027, AI spending in Germany is forecast to be 40.3 billion euros, which corresponds to further growth of around 40 percent.