German digital association expresses concerns over AI Act implementation

The Bundesverband Digitale Wirtschaft (BVDW), representing over 600 digital economy companies in Germany, released a statement on October 10, 2025, highlighting concerns about the country's approach to implementing the European Union's AI Act. The organization identifies significant challenges in the draft legislation that could affect Germany's competitiveness as an AI development hub.

The statement addresses the national implementation of the AI Ordinance, which aims to establish the legal and organizational framework for artificial intelligence systems within German territory. Germany faces an August 2, 2025 deadline to designate national competent authorities under Article 70 of the EU AI Act, a requirement Denmark already fulfilled in May by becoming the first member state to complete national implementation.

According to the BVDW document, the German government's draft legislation creates a central coordination point at the Bundesnetzagentur (BNetzA), which will establish the Koordinierungs- und Kompetenzzentrum (KoKIVO) as a coordination and competence center. This structure attempts to balance centralized oversight with existing sectoral expertise across multiple regulatory authorities.

The organization welcomes certain aspects of the draft. The establishment of a unified national legal framework provides planning certainty for companies developing and deploying AI systems. The coordinated market surveillance approach through BNetzA offers potential for transparent and efficient oversight. The draft legislation also leverages existing market surveillance authorities in fully harmonized product regulation areas and maintains established oversight structures in financial services, allowing businesses to continue working with familiar regulatory bodies.

However, the statement identifies substantial implementation challenges. The planned distribution of market surveillance responsibilities across numerous authorities creates potential jurisdictional conflicts and inefficient decision-making processes. Data protection authorities may struggle to extend their expertise into product regulation domains, creating compliance uncertainties for marketing technology providers and advertising platforms.

Resource allocation emerges as a critical concern. The parallel development of competencies across multiple agencies requires significant resources, potentially creating duplicate structures while exacerbating the existing shortage of qualified AI specialists. The draft proposes expanding BNetzA staffing to 129 positions by 2027, but the BVDW questions whether this target remains achievable given current labor market conditions and whether such staffing levels prove sufficient for the complex oversight tasks.

Marketing organizations utilizing AI-powered tools face particular challenges under the evolving regulatory landscape. IAB Europe's July 2025 whitepaper, which included BVDW representation, emphasized that documentation requirements enable better assessment of model capabilities when selecting systems for campaign optimization, content generation, and audience targeting applications.

The fragmented authority structure could create compliance burdens for companies, especially small and medium-sized enterprises. While the draft legislation aims for bureaucracy-light implementation, unclear jurisdictional boundaries, additional reporting obligations, and regulatory requirements threaten to overload businesses. The configuration of AI regulatory sandboxes remains vague, particularly regarding access rights for smaller market participants, potentially hindering the innovation support the measures intend to provide.

The BVDW's concerns align with broader European implementation challenges. The Netherlands announced plans in July 2025 for a regulatory sandbox launching by 2026, while identifying persistent ambiguities in AI system definitions, particularly regarding multi-component systems and interface classifications. Dutch authorities emphasized centralized access through a single portal, preventing AI providers from determining appropriate supervisory contacts independently.

Marketing technology providers must navigate these regulatory complexities while maintaining operational effectiveness. The EU AI Act's transparency obligations under Article 50 become applicable from August 2, 2026, requiring clear disclosure mechanisms for AI-generated content across advertising platforms. Cross-border campaigns face additional complexity as Article 50 applies to AI systems placed on European markets regardless of provider location.

The statement recommends several improvements to address identified weaknesses. The BVDW advocates for clear jurisdictional boundaries and task divisions, suggesting the proposed structure requires close coordination between different authorities with BNetzA holding guideline competence as the coordinating agency. The KoKIVO should possess authority to issue binding decisions rather than serving purely advisory functions.

The organization proposes expanding market surveillance authority to include Landesmedienanstalten (state media authorities) responsible under the Media State Treaty and Youth Media Protection State Treaty. This approach would maintain consistency by leveraging existing industry expertise, similar to the draft's utilization of other sectoral authorities.

Structural optimization represents another key recommendation. Rather than equipping multiple authorities with similar competencies, the BVDW suggests developing clear specializations and expanding relevant expertise. This requires sharp task profiles and effective inter-agency networking. The organization emphasizes comprehensive measures for recruiting and training AI specialists to meet growing demand.

The statement reflects tensions between regulatory oversight and technological innovation as European authorities attempt to balance safety requirements with competitive positioning in global AI markets. Consumer trust research published in July 2025 revealed 46% of respondents accepting cookies less frequently than three years ago, while 42% regularly read consent banners before sharing data, demonstrating increasing digital literacy and greater scrutiny of data collection practices affecting AI-powered marketing systems.

The timing of Germany's implementation process creates pressures for marketing organizations preparing for compliance. Technology companies have adopted different strategies for managing regulatory relationships across global markets. Meta refused to sign the General-Purpose AI Code of Practice in July 2025, citing legal uncertainties and measures extending beyond the AI Act's scope, while Microsoft, Google, OpenAI, and Anthropic committed to the voluntary framework.

The AI Act's implementation schedule creates graduated compliance requirements for different market participants. Enforcement becomes applicable one year later for new models and two years later for existing models placed on the market before August 2025. Transitional provisions require existing model providers to take necessary steps for compliance by August 2, 2027.

Marketing teams utilizing general-purpose AI models for content creation, customer targeting, or campaign optimization must demonstrate compliance with detailed transparency and safety requirements. Copyright compliance requirements particularly impact marketing applications that generate creative content. Commission guidelines released in July 2025 require models used for advertising copy generation, visual content creation, or social media automation to implement policies addressing EU copyright law throughout their operational lifecycle.

The regulatory framework creates significant implications for marketing technology providers and agencies. Documentation requirements enable better assessment of model capabilities, while compliance pathways developed through voluntary codes of practice provide clearer guidelines for evaluating AI tool selection. The transparency obligations require model providers to disclose training data sources and system capabilities, enabling more informed technology adoption decisions.

Platform enforcement mechanisms have expanded throughout 2025, with AI-powered systems now tracking cross-platform compliance violations that could trigger enforcement actions. German authorities have demonstrated active enforcement of digital regulations, though patterns vary across different regulatory domains. German data protection authorities established unified fine procedures in June 2025, aiming to standardize GDPR enforcement across federal and state levels.

The BVDW statement emphasizes that successful AI Ordinance implementation requires a balanced approach fostering innovation while protecting society's safety and fundamental rights. The organization offers continued cooperation with the German government to strengthen Germany as an AI innovation hub while maintaining necessary regulatory safeguards.

The marketing community must monitor these developments closely as Germany finalizes its AI Act implementation framework. The fragmented authority structure, resource constraints, and unclear jurisdictional boundaries identified in the BVDW statement signal potential compliance challenges for advertising platforms, marketing technology providers, and agencies utilizing AI-powered tools across German and broader European markets.

Timeline

• February 2025: European Commission publishes first AI Act guidance documents on prohibited practices and AI system definitions
• May 6, 2024: German Data Protection Authorities issue first guidelines on AI and privacy
• May 8, 2025: Denmark becomes first EU member state to adopt national AI Act implementation legislation
• June 16, 2025: German data protection authorities agree on model guidelines for standardized fine procedures
• July 7, 2025: IAB Europe releases AI whitepaper with BVDW participation addressing digital advertising transformation
• July 15, 2025: Netherlands announces regulatory sandbox launching by 2026 for AI compliance testing
• July 18, 2025: European Commission releases AI Act guidelines while Meta refuses to sign code of practice
• July 20, 2025: Microsoft commits to signing EU AI code while Meta announces refusal to participate
• August 1, 2024: EU AI Act enters into force across European markets
• August 2, 2025: Deadline for EU member states to designate national competent authorities under Article 70
• September 3, 2025: BVDW publishes white paper on digital brand positioning at physical retail locations
• September 5, 2025: European Commission opens consultation for AI transparency guidelines under Article 50
• October 10, 2025: BVDW releases statement on national implementation of AI Ordinance
• August 2, 2026: AI Act transparency obligations under Article 50 become applicable
• August 2, 2027: Enforcement becomes applicable for existing AI models placed on market before August 2025

Summary

Who: The Bundesverband Digitale Wirtschaft (BVDW), Germany's Federal Association for Digital Economy representing over 600 member companies including digital enterprises, agencies, and publishers, issued the statement. The document was prepared by Janek Kuberzig, Manager Public Affairs for Data & Technology, and Timo Weigl, Head of Politics & Communication. The statement addresses the German government's draft legislation affecting AI system operators, marketing technology companies, and regulatory authorities.

What: A comprehensive statement analyzing the draft national implementation legislation for the EU AI Act, identifying both strengths and significant weaknesses in Germany's proposed regulatory framework. The document welcomes the unified national legal framework, coordinated market surveillance through BNetzA's KoKIVO coordination center, utilization of existing sectoral expertise, and innovation support through AI regulatory sandboxes. However, it expresses serious concerns about fragmented jurisdictional responsibilities across multiple authorities, resource constraints with BNetzA expansion to only 129 positions by 2027, potential bureaucratic burdens on companies especially SMEs, and unclear access conditions for regulatory sandboxes. The statement provides specific recommendations including clearer jurisdictional boundaries, expanded authority for state media regulators, structural optimization avoiding duplicate competencies, and comprehensive measures for AI specialist recruitment.

When: The statement was released on October 10, 2025, during the critical implementation period before Germany's August 2, 2025 deadline to designate national competent authorities under EU AI Act Article 70. The timing addresses legislation that will govern AI systems as the EU AI Act entered force on August 1, 2024, with transparency obligations becoming applicable from August 2, 2026, and enforcement for existing models extending to August 2, 2027. Denmark had already completed national implementation by May 8, 2025, making Germany's October statement part of the broader European implementation timeline.

Where: The statement addresses national implementation within Germany, though the implications extend across European markets given the EU AI Act's cross-border application. The proposed framework establishes BNetzA as the central coordination point while distributing market surveillance across federal and state authorities, data protection bodies, and sectoral regulators. The fragmented structure contrasts with Denmark's centralized approach through three national competent authorities. For marketing organizations, the geographic scope matters because Article 50 applies to AI systems placed on European markets regardless of provider location, requiring region-specific disclosure mechanisms while maintaining operational efficiency across different regulatory jurisdictions.

Why: The statement matters for the marketing community because it identifies fundamental challenges in how Germany will enforce AI regulations affecting advertising platforms, marketing technology providers, and agencies utilizing AI-powered tools. The fragmented authority structure creates compliance uncertainties for businesses operating across German markets, while resource constraints raise questions about effective oversight capacity. For marketing professionals, the implementation challenges signal potential difficulties in navigating jurisdictional boundaries for AI-powered campaign optimization, content generation, and audience targeting systems. The statement's timing during the implementation period allows industry input before final legislative adoption, potentially influencing the regulatory framework that will govern AI-driven marketing operations across Germany and European markets. The concerns about bureaucratic burdens on SMEs particularly affect smaller marketing technology companies and agencies that lack dedicated compliance resources, while unclear regulatory sandbox access could limit innovation opportunities for emerging players in AI-powered advertising solutions.