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German companies increase AI spending by 48 percent in 2026

October 6, 2026 · 1 min read

Also published in Español, العربية, Norsk

Close-up of a computer motherboard with processor and connector
Ludovico Ceroseis / Unsplash

German companies are increasing their investments in artificial intelligence at a rapid pace, according to calculations by the digital association Bitkom. Total spending on AI software, services and hardware is expected to rise by 48 percent in 2026, reaching 28.7 billion euros compared to 19.4 billion euros in 2025. The main driver of this growth is generative AI, which includes applications such as ChatGPT, Claude, Microsoft Copilot and Google Gemini.

Spending in this segment is projected to double from 5.7 billion euros to 11.5 billion euros, accounting for around 40 percent of the entire market. AI software remains the largest component of overall AI expenditures, with an estimated 16.0 billion euros allocated in 2026, representing a 65 percent increase. Related services are expected to cost 6.8 billion euros, up 30 percent, while hardware investments are forecast at 5.8 billion euros, a 32 percent rise.

Analysts do not see an end to this upward trend, as market research firm IDC predicts another 40 percent growth in 2027, bringing the total market volume to 40.3 billion euros. Bitkom President Ralf Wintergerst noted that the shift from experimental use to broad productive deployment of AI is now observable across industries and company sizes.