Artificial Intelligence in Public Services: A Revolutionary Change!
On June 4, 2025, Chancellor Stocker and Minister Pröll discussed the budget for AI in public services and digitalization.

Artificial Intelligence in Public Services: A Revolutionary Change!
The current budget discussions for 2025 and 2026 in the Federal Chancellery are focusing on artificial intelligence (AI) and digitalization. The draft budget provides for 626 million euros for the Federal Chancellery in 2025 and 549 million euros in 2026, with a budget reduction of 334.6 million euros compared to the previous year. These savings are to be achieved by shifting tasks between departments and by reducing the number of permanent positions ots.at reported.
A central theme of the deliberations was the high retirement rate in the public sector, where 41% of employees will retire in the next 13 years. Federal Chancellor Christian Stocker and State Secretary Alexander Pröll emphasized that AI should be used to increase efficiency and reduce costs in administration. It is envisaged that AI will support administration without replacing human work.
Focus on digitalization and new technologies
The newly founded Federal Ministry for Digital Affairs and State Modernization (BMDS) has set itself the goal of creating a modern and digital administration. The authority sees itself as a driver of a new administrative culture and promotes the use of AI to develop new operating and business models. Loud bmds.bund.de The central control of the federal IT system is used to resolve blockages and achieve rapid success.
As part of a study by Fraunhofer IAO, the relevance of AI in public administration was examined. Workshops were held at ten municipalities and regional associations, with the focus on specific applications such as chatbots, service robots and secure methods for identity management. These technologies are intended to revolutionize administrative processes and benefit both employees and citizens. A central result of the study is recommendations for action on the combination of human and artificial intelligence. iao.fraunhofer.de notes that there are various future scenarios, including the possibility of an AI-dominated public sector.
Budget distribution and consolidation measures
The budget discussions also provide for a distribution of tasks: media and women's agendas are assigned to other ministries, while digitalization and public services are emphasized. In addition, fewer resources are calculated for integration and party support because funding for the EU elections is no longer available. Funding for culture and ethnic groups is decreasing, with a target of 79.8 million euros in 2025.
One of the main priorities for the Federal Chancellery is to take the communications agenda internally and realize a public relations effort of 1.56 million euros in 2025 and 2026. In order to overcome these challenges, salary negotiations are planned for the autumn in order to create a financial cushion for the coming years. In total, the budget shows 983 positions for the years 2025 and 2026, with digital transformation having a clear priority.