Market Spotlight

Artificial Intelligence as a location factor: An analysis

AI-related firms in German cities have surged over the last decade. Munich and Heidelberg lead with over 3% by 2024, while Berlin, Mannheim, and Leipzig show steady growth. The ISTARI.AI indicator reveals regional dynamics driving AI adoption.
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AI Firms on the Rise in German Cities: A Decade of Growth

This chart presents the development of AI-related firms in six German cities from 2014 to 2024, based on ISTARI's AI indicator. It provides a longitudinal view of how the presence of AI-related businesses has changed regionally over time.

Across most cities, a steady increase in the percentage of AI-related firms is visible, especially between 2017 and 2020. By 2024, Munich and Heidelberg show the highest relative shares, each above 3%. Other cities such as Berlin, Mannheim, and Leipzig show moderate but continuous growth.

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City Overview

Munich & Heidelberg

Both cities reach over 3% AI-related firms by 2024. Heidelberg, in particular, has shown strong growth in recent years.

Berlin

Reaches around 2.4% in 2024, showing steady development over the period.

Mannheim

Displays a similar growth curve to Berlin, reaching around 2.3%.

Leipzig

Approaches the 2% mark with continuous, though more gradual, growth.

Bremerhaven

Reaches a peak of approximately 0.8% in 2022, followed by a slight decline.

General Observations

The sharp increase in AI-related firms starting around 2017 aligns with global trends in AI commercialization. Continued growth post-2022 could reflect broader awareness and practical applications of AI technologies, including generative models.

Interpretation Caution

While regional differences are visible, the chart does not explain their causes. Variations may result from differences in economic structure, research presence, infrastructure, or reporting.

The diffusion of AI technologies among firms in German cities over the past decade shows broad national growth with local variation. The ISTARI.AI indicator provides valuable localized insights into how digital technologies are shaping regional economies.

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