Ai's Time Has Come

GERMANY 3/18 AI'S TIME HAS COME From healthcare to production, logistics to sales and marketing, there are few sectors that will not be transformed by artificial intelligence (AI). We survey Germany’s thriving and upcoming AI clusters. page 4 Technology: Entertainment: Manufacturing: Old to gold: a Berlin Why eastern Germany is Manufacturing processes startup is now Europe’s attracting international are being rapidly trans- biggest used car dealer film productions formed by 3D printing page 22 page 14 page 16 FOCUS AI’s Time Has Come German engineers and entrepreneurs are pioneering the artifical intelligence applications of the future. page 4 Fotografie Illing & Vossbeck Photo: »Not only is Germany a highly attractive market for AI; it is also a world leader in research and development.« Dear Reader, Global accountancy firm PwC estimates that the consistent use of artificial intelligence (AI) could ENTERTAINMENT MANUFACTURING boost the global economy by €13.4tn – a truly auspicious sum. AI is forecast to increase Ger- Lights, Camera, many’s gross domestic product by 11.3 percent und Bitte! over the same period. This reflects the country’s position as a highly attractive market for AI and Berlin-Brandenburg and Görlitz are in- a world leader in research and development in ternational hotspots for film production, this field. These are two good reasons to invest attracting big talent and funding. in Germany: we explain how, where, and why in page 14 the “Focus” pages of the current issue of Markets Germany. MANUFACTURING Have you ever heard of Görliwood? Maybe not, The Spirit but you know probably Wes Anderson’s movie Foot off the Brake! of Bauhaus The Grand Budapest Hotel, which was shot in Görlitz in Saxony. Görlitz – known as Görliwood From automobility to aerospace, 3D print- Product design still plays a big role in in the film industry – is one of the favourite lo- ing is being adopted across industry as it Germany’s exporting success. Industrial enters a period of super-charged growth. design expert Uwe Gellert explains why. cations for European and Hollywood film pro- page 16 page 18 ductions in Germany’s eastern federal states, alongside Berlin and the legendary studios in Potsdam-Babelsberg. In the article “Lights, Camera, und Bitte!” we look at what makes the MORE ARTICLES IN THIS ISSUE: TECHNOLOGY region a true Eldorado for filmmakers. In Brief: carbon-fiber plastics, salt processing and What do the cities of Munich, with 1.5m inhabi- algorithms for jet lag and recruitment .... page 12 tants and home to the headquarters of BMW and Siemens, and Bottrop, with 117,000 inhabitants, Old to Gold: Berlin-based startup Auto1 is Eu- have in common, apart from the fact that both rope’s biggest used car dealer ................ page 22 cities are in Germany? They are both laborato- ries for the development of an emerging phe- Coworking in Madrid: GTAI and AHK Spain share much more than just an office ............... page 23 nomenon known as the “Smart City.” Around the world, more and more people are making Speaking for Germany: Peter Altmaier, minister cities their home, and in Germany, solutions are for economic affairs ............................ page 24 being developed to optimize urban living, which A Tale of Two will benefit both people and the environment. Free GTAI Publications: information Find out more in the article “A Tale of Two Smart for your success .................................. page 27 Smart Cities Cities.” From transportation and energy to waste ____ The Digital Magazine and lifestyle efficiencies, Germany’s Dr. Robert Hermann, CEO Online at: Smart Cities are ushering in a new era. Email: [email protected] www.marketsgermany.com page 20 Photo: Feinkorn-Gaby Gerster Feinkorn-Gaby Photo: Lauri Karp, co-founder and CEO of emformX Perhaps Lauri Karp was destined to be in He was a freelance consultant from 2001 the financial services industry arising from banking – at least he was born in a building to 2008 before deciding to set up the soft- the fast-moving forces of digitalization and in Estonia that is now part of a bank. The ware company TreasuryView with his twin cloud services. EmformX offers an applica- former financial consultant and co-found- brother Margo. They had just begun cod- tion programming interface (API) product er of Frankfurt-based emformX helps ing, when the global meltdown happened. and provides a platform that helps to simpli- European financial services institutions “These were really tough years, because the fy otherwise time-consuming financial and to communicate with and serve their cus- product was about interest rate and debt transaction data analysis: “We make dumb tomers more efficiently and effectively. management aimed at customers in banks data smart,” he says, “and deliver automated The venture draws on Karp’s extensive and the public sector. Suddenly customers content to our customers that makes sense.” 20-year experience in finance. After study- disappeared, so our market shrank rapidly. Karp is more convinced than ever that ing economics in Heidelberg, he moved to Meanwhile, the Interest rate had shrunk to Germany – and Frankfurt in particular – Frankfurt in 1998 to work for one of the ma- 0% – so who needs a risk solution?” Luck- offers the right base for innovation and jor players in banking. “It was an exciting ily, their public sector clients stuck with growth: “It has the best business environ- phase which saw the first wave of digitali- them and they emerged stronger. ment and legal infrastructure to support a zation: there were lots of new ecommerce Benefiting from Karp’s past experiences business looking to see what is possible.” products and a boom on exchanges. It was and professional network, the new venture a catalyst for what was possible,” he says. emformX is seizing the opportunities in www.emformx.com 4 MARKETS GERMANY | Focus Patient-side cart Positioned where the patient is during surgery, the machine has up to four robotic arms Vision system to carry out the surgeon’s Equipped with a high-def precise commands. 3D endoscope and im- Surgeon console age-processing equipment The surgeon operates the that provides true-to-life Da Vinci system: their manual anatomical images. movements are translated seamlessly into robotic surgical operations in real time. Photo: Intuitive Surgical, Inc. Surgical, Intuitive Photo: MARKETS GERMANY | Focus 5 Endowrist instruments Each has seven degrees of motion and is designed for a specific task e.g. clamp- ing, dissecting, suturing. AI’s Time Has Come Artificial intelligence (AI) will fundamentally change the nature of industry. German companies, researchers and developers are pioneering the disruptive AI applications of the future. Little wonder foreign investment is flowing into German R&D. da learns fast. She has to. That’s western medicine and applies it through an because Ada is a frontline health algorithm. “We’ve spent seven years working A worker who consults with people intensively on AI data processing and building who are in pain and feeling unwell. To do a global network of medical experts to support her best for her patients, Ada needs to know us,” says Nathrath, CEO and founder of Ada all the relevant medical basics. She must ask Health. “This gives us a real head-start here the right questions and analyze in minutes whether the symptoms suggest a serious illness, if she should bring in a doctor; or al- ternatively, if a few soothing words, a day in bed, or a trip to the pharmacy are enough to treat her patient. Ada does not have a medical qualifica- tion or even a university degree. Everything she knows she learned in a Berlin backyard from entrepreneur Daniel Nathrath and his GTAI Market Presentations @Medica 2018 team. Ada’s creators have programmed her Meet our industry experts in hall 15 @booth 15F37. to be a health consultant and trained her www.gtai.com/medica with the combined knowledge of more than 70 physicians, mathematicians, data scientists and computer scientists. By now you in Berlin and makes us the world’s leading may have realized that Ada is not human but software for diagnostic support.” Over three an Artificial Intelligence (AI). million people are already using the Ada app When users of the Ada app enter their worldwide and last year €40m of capital was symptoms into the chat program, “she” collects ploughed into the startup to develop the ser- and maps the collective medical knowledge of vice further. Investors included prominent 6 MARKETS GERMANY | Focus Wolfgang Wahlster »Germany has produced many pioneers.« It is thanks to innovators like Wolfgang Wahlster, head of the German Research Center for Artificial Intelligence DFKI, that Germany has been pioneering arti- international financiers such as U.S. billion- ficial intelligence since the 1980s. He tells This focus on AI applications is one of the key aire Leonard Blavatnik, Google business chief Markets Germany about the strengths of strengths of German research and develop- Philipp Schindler, and British AI professor Germany as a business location. ment (R&D). “With regard to AI, the bound- William Tunstall-Pedoe, who developed the ary between basic research, application-ori- Mr Wahlster, how long have you been technology behind Amazon’s voice-driven ar- ented research and transfer to industry is involved with artificial intelligence? tificial intelligence “Alexa.” Since the early 1980s when I did some basic fluid,” says Hermann. The development of research into AI for my dissertation on how machine learning technology is progressing KI: “Made in Germany” to teach a computer to understand natural so fast that there may only be a few months Ada is just one of many examples of inno- language. At that time, I was a lone warrior between the idea stage and a first application.

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