Germany is known for its bureaucracy. With help from the EU, the country has created a complex system of rules and regulations. This affects citizens and businesses alike. Many people face long waits for approvals due to overwhelmed departments. According to the ifo Institute, businesses spend 146 billion euros yearly to manage bureaucracy.
The government talks about reducing bureaucracy but has not made significant progress. Now, they are looking at generative AI as a solution. For instance, the Federal Employment Agency is investing up to 19 million euros in a contract with a startup, Aleph Alpha. They claim AI can save up to 30% of the time in processing requests. AI is also being considered for use in courts and medical documentation, where it could save hours of work daily.
A study by the German Economic Institute, funded by Google, suggests that AI can automate processes, analyze data, and summarize texts. It could become a “turbo” for administration and restore public trust by making the government more efficient. The study claims AI could increase public sector value by up to 23.9 billion euros. However, this also benefits the tech industry, which builds expensive AI data centers and incurs high electricity costs. This raises questions about the financial burden on taxpayers.
Despite its potential, generative AI is prone to errors, requiring human verification. While it might make writing meeting notes faster, it is unclear how AI could handle complex processes with unclear responsibilities. Moreover, AI cannot resolve vague legal issues often left to the courts. For example, the topic of false self-employment is complex, and even the German Pension Insurance uses AI for audits.
Digitalization is crucial for efficient administration. We need digital interfaces between authorities. However, the current excitement over AI in administration might be misplaced. Erika Raab, chair of the German Society for Medical Controlling, points out the chaos in medical billing rules, with over 980 overlapping regulations. She argues that AI cannot solve this and calls for a cleanup of the rules. Simplifying regulations would increase public trust in the government, but this is challenging in Germany’s procedural democracy. It seems easier to invest in tech promises than to change regulatory behavior.