Germany approves AI Market Surveillance and Innovation Promotion Act

The German Federal Cabinet has approved the draft AI Market Surveillance and Innovation Promotion Act (KI-MIG) to implement the European AI Act through a streamlined, innovation-friendly regulatory framework. Under this new legislation, the Federal Network Agency (Bundesnetzagentur) is designated as the central coordinating body and market surveillance authority, serving as a hub of expertise to ensure the secure deployment of AI while minimizing bureaucratic overhead. To maintain efficiency and provide a “one-stop-shop” for businesses, the act leverages existing sector-specific oversight structures for product regulation, ensuring that companies can continue working with familiar authorities that will now incorporate AI compliance into their mandates. Furthermore, the Federal Ministry for Digital and Economic Affairs (BMDS) has integrated specific support mechanisms for small and medium-sized enterprises (SMEs) and startups, including an AI Service Desk, a regulatory sandbox for testing innovative applications in a legally secure environment, and targeted training initiatives.

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