People are searching for options to non-American tech items

In the rapidly evolving digital world, Germany is grappling with its dependence on US and Chinese tech giants, particularly in the fields of Artificial Intelligence (AI) and online payment services.

According to a representative survey by Bitkom, two-thirds (67%) of Germans aged 16 and above use generative AI at least occasionally. However, the survey also revealed that 60% of respondents want Germany to become less dependent on US AI companies. This sentiment is echoed by a significant portion of the population, with 68% believing that Germany is too dependent on the USA and China in the AI sector.

The German government, under the leadership of Federal Chancellor Friedrich Merz (CDU), is taking steps to address these concerns. Merz has stated that the goal is to minimize risks, aiming to foster a more balanced digital ecosystem.

One such effort is the rise of European online payment services, such as Wero, a real-time money transfer service launched by the European Payments Initiative (EPI) starting in July 2024. Wero allows users to send money in real-time to a phone number or email address, without the need for IBANs. It has already been integrated by banks like ING and Revolut in Germany and is expanding across Europe.

However, European competitors like Revolut and Wero face challenges in competing with US-based online payment services like PayPal, often relying on the "Made in Europe" argument. This was highlighted recently when PayPal's security systems failed, allowing fraudulent direct debits to go through, leading several German banks to halt further processing of such transactions.

On the AI front, the French AI startup Mistral AI (Le Chat), which focuses on developing open-source language models and prioritizes privacy, is still largely unknown in Germany. Meanwhile, the usage of generative AI is almost exclusively limited to the leading providers, OpenAI (ChatGPT), Microsoft (Copilot), and Google (Gemini).

The Federal Office for Information Security (BSI) advises consumers to consider the security measures offered by a product or service provider when making a decision. This is particularly important as Microsoft's decision to end free support for Windows 10 on October 14 has caused frustration for consumers, leaving them to either pay for security updates or deal with any security vulnerabilities on their own.

Moreover, the high minimum requirements for Windows 11 mean that many still-functional devices will need to be replaced or users will need to switch to a different operating system. This change causes unnecessary costs and contributes to e-waste.

Cognitive dissonance is a common factor that prevents users from changing their behaviour despite the discomfort. As Germany and France, along with the EU Commission, host a summit on digital sovereignty in Berlin on November 18, it remains to be seen how these issues will be addressed and whether a more balanced digital landscape will emerge.

For users who use the Revolut app and Vivaldi browser, they might be perceived as eccentric outsiders by some. However, the growing discomfort about software and hardware from China and the US suggests that a shift towards more homegrown solutions may be on the horizon. The German equivalent, Aleph Alpha, focuses more on specific AI solutions for corporate clients and public clients that must meet high data protection requirements.

In conclusion, the digital landscape in Germany is undergoing a significant shift, with a growing emphasis on European solutions and a reduced dependence on US and Chinese tech giants. As the summit on digital sovereignty approaches, it is an opportune time for discussions on how to foster a more balanced digital ecosystem that prioritizes security, privacy, and sustainability.