The key topics of the AIP are cosmic magnetic fields and extragalactic astrophysics. A considerable part of the institute's efforts aim at the development of research technology in the fields of spectroscopy, robotic telescopes, and e-science. The AIP is the successor of the Berlin Observatory founded in 1700 and of the Astrophysical Observatory of Potsdam founded in 1874. The latter was the world's first observatory to emphasize explicitly the research area of astrophysics.

The AIP is a foundation according to civil law and is a member of the Leibniz Association. The Leibniz Association is a network of 82 independent research institutes and scientific service facilities, which strive for scientific solutions for major social challenges.