ZIM funding freeze alternatives: which funding sources remain for AI projects
As of August 2026, the most important ZIM funding freeze alternatives for AI projects are KMU-innovativ, with its next deadline on 15 October 2026, regional programmes such as Digitalbonus Bayern and, in Switzerland, Innosuisse. The former standard federal programmes have expired. Plan your project so that it pays for itself from its own business case.
Image: Marcin Wilkowski / Datified Relations / Licenced by CC-BY 4.0
For decision makers in brief
- Situation: Two of the three former standard federal programmes for digitalisation have expired. The third, ZIM, has been closed to new applications since 7 July 2026.
- Effort: Funding remains available mainly for projects with a genuine research component. KMU-innovativ requires submission by fixed deadlines.
- Cost: Today a project has to pay for itself from its own business case, not from the funding rate. That favours narrowly scoped use cases with a short payback period.
- Risk: Waiting for ZIM to reopen costs time. A restart is targeted for early 2027, but it has not been promised.
All information in this article reflects the status in August 2026. Funding programmes change quickly. Check the current status with the relevant programme administrator before every decision.
What happened to ZIM
The Central Innovation Programme for SMEs (Zentrales Innovationsprogramm Mittelstand, ZIM) was the first port of call for many industrial SMEs looking for funding for a development project involving AI. Its target group is the German Mittelstand, mid-sized companies with roughly 50 to 1,000 employees. Since 12 noon on 7 July 2026, applications have been temporarily suspended. The freeze applies to all project types and also to project outlines. The programme administrator cites strongly increased demand combined with limited budget funds as the reason. Applications already submitted will continue to be processed. A restart is targeted for early 2027.
The freeze hits a funding landscape that had already thinned out. Digital Jetzt has expired; it used to offer grants of up to 50 %, capped at EUR 50,000. No successor programme with a comparable scope is in sight. go-digital has also expired, officially confirmed at the start of 2025. For a German industrial SME that wants to start an AI project now, the most important federal funding source is therefore closed. The search for ZIM funding freeze alternatives starts with the programmes that are still open.
ZIM funding freeze alternatives at a glance
The following table shows the federal programmes and their status in August 2026.
| Programme | Status August 2026 | What you should know |
|---|---|---|
| ZIM | Application freeze since 07.07.2026 | All project types and outlines affected, restart targeted for early 2027, submitted applications continue to be processed |
| Digital Jetzt | Expired | No successor with a comparable scope, previously grants of up to 50 %, capped at EUR 50,000 |
| go-digital | Expired | Officially confirmed at the start of 2025 |
| Mittelstand-Digital centres | In transition | Network of up to 29 centres ends in late 2026, new call for proposals completed, new focus on cybersecurity, seamless transition on 01.01.2027 still open |
| KMU-innovativ | Active | Deadlines on 15 April and 15 October each year, AI integrated into the fields ICT and software intensive systems and Future of Value Creation, funding rates depend on each call |
KMU-innovativ: the obvious alternative for research components
As of August 2026, KMU-innovativ, the federal research funding programme for innovative SMEs, is the only active federal programme in this group with fixed submission dates. AI is not a separate technology field there; it is integrated into the areas ICT and software intensive systems and Future of Value Creation. Funding rates differ from call to call. The next deadline is 15 October 2026, followed by 15 April 2027. Time is short for the October date, so if you are planning a project with a genuine research component, prepare realistically for the April date.
The distinction matters: KMU-innovativ funds research and development. Introducing a proven solution in your own plant, for example an assistant for maintenance, usually does not qualify. That is our assessment; the relevant call is what counts.
Regional digitalisation programmes, Austria and Switzerland
Beyond the federal level, it is worth looking at programmes in the German states and in neighbouring countries. Here, too, the picture is mixed.
| Programme | Region | Status August 2026 | Terms |
|---|---|---|---|
| Digitalbonus Bayern | Bavaria | Active until 31.12.2027 | Standard up to EUR 7,500, Plus up to EUR 30,000, each up to 50 % of eligible costs; for companies with fewer than 50 employees and a maximum annual turnover of EUR 10 million with a site in Bavaria; projects with an AI focus qualify for the Plus variant |
| KMU.DIGITAL 4.0 | Austria | Budget exhausted | No new applications for consulting and implementation funding; KMU.DIGITAL & GREEN remains active for digitalisation with ecological sustainability goals |
| aws Digitalisierung | Austria | AI calls closed | Programme generally continues, all AI specific calls have ended; grants of up to EUR 150,000, duration eight months to two years, AI initiatives a maximum of twelve months |
| Innosuisse | Switzerland | Active | National and international project funding, project initiation, start-up funding, Eurostars for innovative SMEs as consortium leaders; contribution amounts deliberately not stated in the industry report because they were not verified at the primary source |
For small Bavarian companies, Digitalbonus Bayern, the Bavarian state's digitalisation grant, with its Plus variant is the most tangible option. In Austria, funding through the Austrian federal promotional bank aws and the KMU.DIGITAL programme remains available mainly for projects that combine digitalisation and sustainability. In Switzerland, Innosuisse, the Swiss innovation agency, is the point of contact, and you should ask there directly about specific contribution amounts.
Why the project now has to pay for itself
The thinned out funding landscape shifts the question. It is no longer the funding rate that decides whether a project starts, but your own calculation. An AI project without funding is not a stopgap if the scope is right. It is often even the best of the ZIM funding freeze alternatives.
The research shows what matters. Platform and transformation programmes need two to four years on average to reach a satisfactory return, and only 6 % of companies achieve payback in less than twelve months (Deloitte 2025, consultancy study). Narrowly scoped individual cases such as predictive maintenance, by contrast, pay for themselves in three to twelve months. The difference lies not in the technology but in the scope. How this works out for your own use case is shown by our calculator to calculate the ROI of an AI project.
This matches what companies actually spend. Companies using AI invest around 2 % of their net turnover in AI on average, and almost half invested zero euros in the previous year (Federal Network Agency, Bundesnetzagentur, 2025). 48 % cite a lack of financial resources as an obstacle (Bitkom, the German digital industry association, 2026). In mechanical and plant engineering, 44 % name an unproven return on investment as a hurdle (VDMA, the German Mechanical Engineering Industry Association). If you start without funding, you therefore need a baseline before the start and a benefit that shows within months.
A price agreed in advance provides a reliable framework. On our page about the AI project fixed price, we disclose what a pilot and an implementation include: 72 hours to the first pilot and 4 to 10 weeks for implementation.
How to proceed now
- Clarify eligibility: Does your project have a genuine research component, or is it about introducing a proven solution? KMU-innovativ is only an option in the first case.
- Check regional programmes: Location, headcount and turnover determine eligibility for regional digitalisation programmes such as Digitalbonus Bayern.
- Calculate the business case without funding: Build the calculation so that the project works without a grant. Funding improves the numbers; it must not be what makes them work in the first place.
- Scope the use case narrowly: One plant area, one document type, one metric. Narrow cases pay for themselves faster than broad platform programmes.
- Keep an eye on ZIM: If you have a suitable project, prepare the documents so that you can submit quickly if applications reopen.
You will find a regularly updated overview of funding for AI projects on our funding page.
Frequently asked questions
When will ZIM reopen?
As of August 2026, a restart is targeted for early 2027; no fixed date was known. Applications already submitted will continue to be processed. Check the current status directly with the programme administrator.
Is there a successor programme to Digital Jetzt?
As of August 2026, no successor programme with a comparable scope is in sight. go-digital has also expired. For pure digitalisation projects without a research component, this leaves mainly the programmes of the German states.
Does KMU-innovativ fund the introduction of an AI assistant?
Usually not, because KMU-innovativ funds research and development. The relevant call is what counts. If there is a genuine development component, it is worth checking the 15 October 2026 or 15 April 2027 deadline.
Which funding programmes 2026 are available for AI in Austria?
As of August 2026, the KMU.DIGITAL 4.0 budget is exhausted and the AI specific calls of aws Digitalisierung are closed. KMU.DIGITAL & GREEN remains active for digitalisation combined with ecological sustainability goals.
