Existing regulators will take on responsibility for monitoring German companies’ compliance with the EU AI Act, with an enhanced role earmarked for the Federal Network Agency (Bundesnetzagentur, BNetzA), according to legislative proposals that have been published.
The AI Act was written into EU law last year but only some of the chapters have taken effect so far – prohibitions on certain types and uses of AI began applying in February, while rules impacting providers of so-called ‘general purpose AI models’ came into effect in August. Rules applicable to ‘high-risk’ AI systems do not come into effect until August next year.
The federal government in Germany’s draft of the so-called AI Market Surveillance and Innovation Promotion Act is designed to implement the AI Act in the country. While the AI Act is an EU regulation that has direct effect in each EU member state, each country needs to take some steps within their own national frameworks in order to give practical effect to the legislation – such as in relation to the monitoring and enforcement of compliance.
In that regard, the plans include expanding the remits of existing authorities – including those responsible for product regulation and financial services regulation – to encompass duties to monitor and enforce compliance with the AI Act. Germany’s federal and state data protection authorities will also have oversight roles. However, the federal government has made provision for the BNetzA to lead on market surveillance activities, to ensure that German supervision of AI Act compliance is coordinated and that other authorities have access to centralised resources to support their work under the AI Act.
According to the legislative proposals, BNetzA will also have innovation-promoting responsibilities. For example, it will be tasked with operating an AI lab and service desk to support businesses in deploying AI in a way that complies with the AI Act. The draft law also provides for fines to be imposed in Germany for non-compliance.
EU member states’ implementing legislation was supposed to be in place by 2 August 2025, but a number of member states are behind schedule. In Germany, the law-making process was particularly delayed as a result of the unscheduled parliamentary elections earlier this year. The federal government said it is “working at full speed to bring the draft law to the cabinet quickly”. The draft AI Market Surveillance and Innovation Promotion Act is open to public comment until 10 October 2025.
Dr Nils Rauer of Pinsent Masons in Frankfurt said: “As with all legislation coming from Brussels, in order to implement and enforce EU law it needs authorities on the ground in the member states to administer and apply the legal framework. The EU AI Act is no exception – it rests on the dovetailing of responsibilities across national notifying and surveillance bodies, exercising bespoke competences and duties, with the task of coordination and harmonisation falling to the EU AI Office. This requires clear statutory acts on national level.”
“I am pleased that the central body in Germany will be the Bundesnetzagentur. Whilst this body already has a number of functions, it is the authority with the best skillset in the digital sphere – for example, it is already the ‘Digital Services Coordinator’ for Germany under the EU’s Digital Services Act. It is therefore the logical choice for this role under the EU AI Act in Germany and it should help with providing a one-stop-shop for business queries in respect of the digital environment,” he said.
Anna-Lena Kempf, who works with Rauer, added: “Whilst the core subject of the new German law is of administrative nature, there parts dealing with the promotion of innovation and fines are a little vague. Businesses will want to see more detail of what is planned.”
Dr. Karsten Wildberger, federal minister for digital affairs, said: “We are committed to AI governance for Germany that promotes innovation and is as lean as possible. It is crucial that German AI developers and AI users are provided with clear and competent contact persons. With the Federal Network Agency as the central supervisory authority, we use existing expertise and ensure legal clarity and fast processes. If we want to see more AI developments from Germany and Europe, we need to create practicable framework conditions for companies."
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