"Healthcare without AI will not exist in a few years"

“AI is present in everything corporations do today and enables processes to become more efficient,” said Michael Salcher, Managing Partner and Head of Energy and Natural Resources at KPMG Germany, speaking at the Mind the Tech Berlin 2025 conference hosted by Calcalist and Bank Leumi.

Salcher spoke in a conversation with Dina Pasca Raz, Partner and Head of Technology at KPMG Israel.

“We have 3.5 million companies in Germany, and heavy industrial production,” Salcher added. “It needs to undergo a decarbonization process. This requires large investments and significant R&D efforts. AI is, of course, part of this process.”

Pasca Raz: “Let’s talk about cases of Israeli innovation succeeding in Germany.”

Salcher: “We can take the pharmaceutical industry as an example. There are many collaborations between scientists and entrepreneurs from Israel and Germany. In Berlin, there is an opportunity for innovation-driven development in healthcare. It should be remembered that healthcare without AI will not exist in a few years, and we must do everything possible to make it more innovative.”

Pasca Raz: “When discussing the synergy between German industry and Israeli high-tech, what are the current challenges? Where can things go wrong?”

Salcher: “One thing to watch out for is bureaucracy. A very smart Israeli entrepreneur wanted to start operating in Germany. We spoke with him about the possibilities with government authorities, who would be responsible for what, and what options and funding exist. The longer the discussion went on, the easier it became for him to understand the situation. Our bureaucracy is killing us, but it can be significantly improved. Anyone dealing with German authorities should understand that it requires more time and comprehension.”

Pasca Raz: “Sometimes cultural differences are a problem. Israelis might arrive late to meetings and not make an issue of it.”

Salcher: “And they can be very direct. Germans really like to plan.”

Pasca Raz: “It’s important to have that bridge. If Israeli startups want to do major deals with German companies, then, as the saying goes, ‘When in Rome, do as the Romans do.’ In Germany, behave like a German. They need to respect local rules and act accordingly.”

Salcher: “But things are changing. Someone told me that when Germans talk to a successful Israeli entrepreneur, they understand that they will never find something like that in Germany.”

Pasca Raz: “When talking about large German corporations, Israelis tend to see them as very complex and complicated. Any tips on that?”

Salcher: “Of course. Things are improving, because more young people entering leadership positions think differently. They are not old-school, they look for improvement and the integration of AI.”