AI startups in Germany are an important driver to fully exploiting the economic potential of AI through innovative products, services and business models. In this blog post, Jessica Schmeiss and Nicolas Friederici analyse the German AI startup scene and conclude that currently about two thirds of German AI startups focus on “AI as a service”, that is, optimising existing value creation processes with the help of AI. Only one third develop “AI as a solution”: comprehensive solutions that have the potential to open up new areas of value creation. The article is part of the HIIG study “Demystifying AI in entrepreneurship”, to be published in 2019.