Artificial Intelligence (AI) has the potential to change the way value is created and captured across all industries. To fully tap into this potential for Germany, it is essential to understand more about what types of AI are produced in Germany and how they contribute to creating value. The process of producing AI is not a magic blackbox but rather an entrepreneurial process that is designed and executed by actors such as entrepreneurs with a specific intention and motivation. Jessica Schmeiss and Nicolas Friederici are highlighting in this introduction to AI the potential for the German economy. The text is part of the “Demystifying AI – How much magic lies behind German AI production?” study, which will be published later this year.