Tighter AI data rules could curb Germany's economic gains by €155 billion a year, study finds

The findings come as European policymakers and technology companies grapple with how to manage the risks posed by AI without slowing innovation, as the region seeks to catch up with the United States and China in developing advanced models.

Germany could miss out on €155 billion ($173.43 billion) in additional annual value added if access to AI training data becomes more restricted, the influential German economic research institute ifo said on Tuesday.

The findings come as European policymakers and technology companies grapple with how to manage the risks posed by AI without slowing innovation, as the region seeks to catch up with the United States and China in developing advanced models.

Generative AI could add €440 billion a year to Germany's economy by 2034, but restrictive access to training data would reduce that by €155 billion, ifo's study found.

The loss would stem from slower AI adoption (€45 billion), weaker models (€75 billion), lower research output (€25 billion) and reduced AI development in Europe (€10 billion), according to ifo's model calculation.

"Anyone who wants a leading European AI model cannot at the same time make access to training data unnecessarily complicated. You cannot have both," ifo expert Oliver Falck said.

The authors urged policymakers to preserve the EU's text-and-data-mining exemption for commercial uses, while introducing proportionate transparency requirements and a practical opt-out standard, and said regulatory uncertainty was already deterring investment in Europe.

The Munich-based institute has recently criticised the German government for using debt-financed fiscal leeway intended for infrastructure and defence spending for other purposes.

($1 = 0.8937 euros)

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