Generative AI for Small and Medium-Sized Enterprises (SMEs)

With the technology program “AI Innovation Competition – Generative AI for SMEs,” the Federal Ministry of Research, Technology and Space specifically supports small and medium-sized enterprises (SMEs) in Germany. This program contributes to the implementation of the German government's AI strategy by developing practical AI solutions designed to strengthen companies in their digital transformation. It also highlights new business models enabled by generative AI.

Link to the programme

Challenge

Small and medium-sized enterprises (SMEs) are facing mounting regulatory pressure, driven by the German Supply Chain Act (LkSG), its EU counterpart (CSDDD), GDPR, and international sanctions. As suppliers to ESG-regulated corporations, they must now demonstrate adherence to human rights, environmental, and ethical standards. This involves not only extensive documentation but also strong processes for risk assessment, contract management, and compliance, that poses a significant burden on resource-limited businesses.

One major challenge is aligning supply conditions across all partners, which involves negotiating and formalizing Supplier Codes of Conduct (SCoCs). This often requires costly legal support. Meanwhile, rising demands from customers and markets for transparency, sustainability, and digital maturity further raise the bar. Companies unable to meet these expectations risk losing tenders, damaging their reputation, or suffering financial setbacks.
 

Solution

SMARTCHAIN is an AI-powered platform designed to streamline complex contract and compliance processes across supply chains. Employing generative AI, it supports companies in efficiently and transparently meeting legal obligations, whether related to the German Supply Chain Act (LkSG), data processing agreements, or sanctions compliance. By automating these tasks, SMARTCHAIN reduces administrative overhead, freeing up resources for strategic priorities like sustainability and competitiveness.

SMARTCHAIN brings together multiple digital tools powered by generative AI: from automated contract drafting and review to smart handling of complex regulatory demands. It helps standardize operations, ensure traceable compliance, and detect risks early on. Additional modules, such as ESG reporting and sanction checks, can be flexibly integrated, offering a scalable and practical solution for evolving business needs.

Partners

SMARTCHAIN is backed by an interdisciplinary consortium of five partners from industry, research and consulting: thyssenkrupp Materials Services GmbH, Academy for Exponential Change GmbH, Jonda Metallwarenfabrik GmbH, Ingolstadt University of Applied Sciences and Tweer & Lösenbeck GmbH & Co. KG.