BERLIN — Germany’s federal government is placing artificial intelligence (AI) at the center of its modernization efforts, unveiling a wide ranging plan to digitize bureaucracy, streamline public administration, and position the country as a European leader in responsible AI adoption.
The initiative, announced last week by Chancellor Friedrich Merz’s cabinet, aims to reduce bureaucracy costs by 25 percent by 2029 and expand the use of AI in courts, visa processing, and administrative workflows.
The “Modernization Agenda,” spearheaded by Digitalization Minister Karsten Wildberger, marks one of Berlin’s most ambitious pushes yet to overhaul outdated systems and catch up with other industrialized nations in digital governance.
The announcement builds on Germany’s High Tech Agenda, introduced in July by Federal Minister of Research, Technology and Space Dorothee Bär, which identified AI as one of six priority technologies alongside biotechnology and microelectronics.
Together, the two agendas signal a shift toward embedding AI deeply within public institutions and national strategy. Projects outlined under the plan include an online platform for export based businesses to consolidate regulatory and credit information, AI assisted visa processing to speed up approvals, and expanded digital services for citizens.
The government also plans to deploy AI tools across local administrations to optimize services such as waste management, urban planning, and healthcare diagnostics.
AI is the key to future growth, and AI is in full swing, Wildberger told the Funke media group. “If we don’t use AI widely, we risk more jobs than if we use it bravely and responsibly.”
Despite growing enthusiasm, experts are urging caution. Holger Hoos, a professor of AI at RWTH Aachen University and a member of the Humboldt Foundation, said policymakers must prioritize scientific guidance over corporate influence.
A government has a moral duty to follow competent advice, Hoos said. “You can’t just follow the advice from industry, which often has vested interests in certain outcomes.”
Hoos and a group of leading AI researchers met with lawmakers in 2023 to recommend frameworks for ethical and transparent AI use in public institutions.
They emphasized that governments should focus on practical, problem specific AI applications rather than chasing generative AI trends.
“This is much more helpful than asking ChatGPT a question,” Hoos said. “You can use AI to identify where bureaucratic processes can be optimized, saving time and resources for everyone.”
Legal experts have also raised concerns about potential misuse or errors in sensitive areas such as healthcare, immigration, and judicial decisions.
AI can serve as a tool in standard cases, but human review is essential in cases relevant to fundamental rights, wrote law scholar Jan Christian Swoboda on legal news site LTO.
Germany’s digital transformation has lagged behind several European counterparts. A 2024 report by the European Commission ranked Germany 16th among EU nations in digital public services.
In comparison, countries like Estonia and Denmark have integrated AI driven platforms across government operations, significantly reducing administrative delays.
According to government estimates, Germany spends over €10 billion annually on bureaucratic procedures that could be optimized through automation and AI. Officials project that adopting AI based systems could reduce processing times for common services by up to 40 percent.
In Baden Württemberg, AI chatbots and automated text tools are already assisting municipal governments. Munich’s waste collection is optimized through predictive AI models, while Cologne uses AI to manage traffic flows.
Heidelberg hospitals are piloting AI for early disease detection, part of broader efforts to address staff shortages as the population ages.
Public reaction to the initiative is mixed. In Berlin’s Mitte district, small business owner Claudia Meier welcomed the proposed online export platform.
Right now, getting the right forms and credit information takes weeks, she said. “If AI can help us get that in days instead, it would be a huge relief.”
But civil society advocates remain wary. “Automation should not come at the cost of oversight,” said data protection activist Lars Engel. “AI must be transparent, accountable, and strictly compliant with Germany’s data protection laws.”
Under the country’s General Data Protection Regulation (GDPR) framework, public agencies must ensure personal data is stored only as long as necessary and shielded from unauthorized access.
Citizens have the right to know what data is collected about them and request deletion if it’s found to be unlawful.
Wildberger has warned that Germany risks being “hopelessly left behind” if it fails to embrace AI at scale. His ministry plans to develop a sovereign, Germany based AI cloud to reduce reliance on foreign technology providers.
Still, critics are questioning recent partnerships with US companies. Hoos pointed to a deal between OpenAI and German software giant SAP as an example of potential overdependence.
This involves public money that should be spent on building up EU and German AI capabilities, he said. Analysts expect AI integration in public administration to accelerate over the next decade, driven by demographic pressures and efficiency demands.
“I predict that in ten years, AI technology will be used for important tasks in all public authorities,” Hoos said. Local governments appear poised to lead much of the experimentation.
Several municipalities have already announced pilot projects to test AI’s potential in traffic management, city planning, and social services. Germany’s AI centered modernization agenda represents a pivotal moment in the country’s digital evolution.
As policymakers push forward, the balance between innovation, accountability, and sovereignty will determine whether the promise of artificial intelligence translates into tangible benefits for citizens or deepens concerns about oversight and dependency.
Whether Berlin can achieve its goal of cutting bureaucracy costs by a quarter while upholding data protection and fairness remains to be seen. But one thing is clear Germany’s gamble on AI marks a decisive step toward redefining how government operates in the digital age.