German implementation process for the AI Act has started.

The provisions on artificial intelligence (AI) of Regulation (EU) 2024/1689 (AI Act) will apply from 2 August 2026. For the implementation of the Regulation, each Member State of the European Union (EU) was required to designate at least one notifying authority and one market surveillance authority by 2 August 2025. Germany was unable to meet this deadline due to the early federal election. In August, the procedure for a national implementing act – the Artificial Intelligence Market Surveillance and Innovation Promotion Act (KI-MIG) – began in Germany, within which the competent authorities will be determined.

Federal Network Agency as central contact point

The draft implementing act designates the Federal Network Agency (BNetzA) as market surveillance authority, notifying authority, central contact point for the European Commission, and operator of a complaints and reporting office. In addition, a Coordination and Competence Centre for the AI Regulation (KoKIVO) is to be established within BNetzA to ensure consistent interpretation of horizontal legal issues and to support the work of the competent authorities. Where appropriate, KoKIVO may involve federal authorities concerned in individual cases and draw on external expertise, in particular the Federal Office for Information Security (BSI), the Federal Cartel Office and the Federal Commissioner for Data Protection.

Decentralised AI-related market surveillance

Beyond this, the draft act of the Federal Ministry for Digital Transformation and Government Modernisation (BMDS) provides for a decentralised supervisory structure. Existing sectoral supervisory authorities are to remain in place, with the competent authorities additionally taking on AI-related market surveillance in their respective regulated areas. This means, for example, that the Federal Institute for Drugs and Medical Devices (BfArM) would remain responsible for medical devices and in vitro diagnostics, while the market surveillance authorities of the German states would continue to be responsible in the field of product safety.

New supervisory chamber for sensitive high-risk AI

Furthermore, an Independent Market Surveillance Chamber (UKIM) is to be established within BNetzA to monitor sensitive high-risk AI systems and report annually to the Bundestag. These include AI systems in the areas of law enforcement, migration, asylum, border control, justice and democracy. This additional safeguard is intended to ensure that, for example, police authorities or justice ministries use AI systems only with full respect for fundamental rights. However, the envisaged responsibility of UKIM within BNetzA has been criticised by the German state data protection authorities. In their view, this contradicts the provisions of the AI Act, which stipulate that data protection authorities should be responsible for supervising high-risk AI systems in these sensitive areas.

AI regulatory sandboxes

In line with the AI Act, AI regulatory sandboxes are intended to provide a controlled environment to foster innovation and to facilitate the development, training, testing and validation of innovative AI systems for a limited period before they are placed on the market or put into service. Member States must establish at least one such AI regulatory sandbox by 2 August 2026. The draft act provides for such sandboxes to be operated, among others, by BNetzA. To support companies and authorities in implementing the AI Act, the draft act also provides for an AI Service Desk at BNetzA, which has been operational since July 2025.

Outlook

On 12 September, BMDS launched the states and stakeholder consultation on the national implementing act for the AI Act. For BMDS, implementing the AI Act currently has high priority – alongside initial measures to reduce bureaucracy in public administration, the development of the “Germany Stack” and the introduction of a European Digital Identity Wallet (EUDI Wallet). These initiatives are considered largely uncontroversial and are expected to be key topics at the government retreat at the end of September.