Cross-industry innovation:
Artificial Intelligence (AI)Diverse business opportunities

Effective networks›

AI thrives on Bavaria’s industrial strength: Thanks to its strong anddiverse manufacturing base, Bavaria is a hotbed for Industry 4.0 in
Europe and hence for cross-industry innovation based on artificialintelligence.

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On a global scale, Bavaria’s competitive edge in AI is in embedded
systems and industrial IoT applications. From mechanical engineering to pharmaceuticals to automotive – smart new applications andAI based services are highly sought after in all industry sectors.

The Hightech Agenda set the agenda for building a world class “AIDistrict” in Bavaria. The concept provides for a state-wide-network
to connect and strengthen existing and new AI hotspots. The newly
founded Bavarian AI Agency, will manage the network. An advisoryboard consisting of renowned experts from Bavaria and abroad willconsult to ensure that the network will turn artificial intelligence
into a major driving force for business success.

›For example, Würzburg (Data Science), Ingolstadt (Mobility), Erlangen (Healthcare) and Nürnberg (flexible AI applications) act as
hubs for specific topics. Munich’s focus is on intelligent robotics withboth the LMU and TU universities as well as independent research
institutes building world class R&D facilities. In the same spirit,
appliedAI, a part of UnternehmerTUM is Germanys largest initiative
for the application of AI technology, helping companies to tackle theoperational challenges of AI transformation.

›Institutions such as the ADA Lovelace Center for Analytics, Data andApplications in Nuremberg facilitate cross-industry innovation bybringing R&D and business together. Here, companies team up withleading national and international AI researchers to collaborate onspecific projects.

›Munich based fortiss center seeks to bridge the gap between
research and real life applications. In 2019, a dedicated center for AI
research was founded in collaboration with IBM Watson IoT Center.

›Bavaria is also among Germany’s most important regions in the services sector, major branches being insurance and financial services.

›A new ecosystem of insurance and cross-industry partners, startups, investors, universities and research institutions has evolved
over the last years with a clear focus on creating new AI-drivenbusiness models.

›In 2020, Munich ranked first among German cities in terms of funding of AI with an average funding of EUR 27 million per company.

Access to talentGlocal perspectives›

The Hightech Agenda is also designed to massively expand thecapacities for prepping world class AI talent at Bavarian universities
and technical colleges. 100 new professorships will be created overthe coming years.

›The growing AI field in Bavaria is not just driven by investmentsfrom the Bavarian state and local investors but also international
corporates, private investors and accelerators. The Bavarian AI venture capital landscape is highly dynamic.

›Already today, the Munich School of Robotics and Machine Intelligence is a world class facility for research and education, which closely collaborates with other institutions such as Fraunhofer Institut
on specific topics.

›Many global players are contributing to turning Bavaria into a global
AI hotspot. For example, IBM Watson’s IoT headquarters is locatedhere and Munich is one of three locations of Microsoft’s IoT & AI
Insider Lab.

›All Bavarian AI hubs – such as Würzburg, Erlangen or Nürnberg – arehome to universities offering specific programmes on AI. In addition,universities and technical colleges in many other Bavarian cities
offer specialized programmes. For example, Aschaffenburg offers
a programme on “Medical Engineering and Data Science”, the AI
course at OTH Weiden allows for specialization on specific topics
such as Smart Home and Smart Energy.

›Local research institutions and universities are well connected globally with partner institutions worldwide – major research projects
operate across border.