Digital transformation in citizen services with AI

Digital transformation addresses the lack of personnel resources in citizen services

In short: Digital processes and artificial intelligence (AI) relieve the burden on understaffed citizens' offices, accelerate processes and improve service quality for citizens through innovative citizen services.

Quickly summarized: Our blog post in three points

1. Learn how municipalities can work more efficiently and in a more citizen-friendly manner in the face of staff shortages (over 500,000 skilled workers will be lacking in the public service by 2030) with the help of AI and digital process optimization – especially for multilingual appointment scheduling, preparation and follow-up as well as live translation at the counter.
2. The legal basis is the Online Access Act with the reform OZG 2.0 (from July 2024) and the GermanyID, so that municipalities not only digitize in compliance with the law, but also reduce operating costs in the long term.
3. To ensure data protection (GDPR, AI Act), the article recommends local or EU-hosted AI systems with audit logs and privacy-by-design, accompanied by data protection impact assessments – so that sensitive citizen data remains protected.

Digital transformation in service with AI: Discover how you can automate processes, reduce operating costs and remain GDPR-compliant despite the shortage of skilled workers – read on now!

Why staff shortages make digitalization a necessity - the example of citizen services

In Germany alone, over 500,000 skilled workers will be needed in the public sector by 2030 – and this number is rising ^[3] . Employees in citizen service centers experience this daily: phone lines are busy, counters close earlier, and waiting times of several months for appointments cause frustration. Digital transformation in citizen services offers municipalities three key advantages:

• Automated application processing reduces typing effort by up to 80%.
• Self-service portals enable 24/7 applications without requiring staff time.
• Multilingual service with AI transforms language barriers – simpler communication leads to easier work and greater understanding.

Online Access Act 2.0 – An Obligation and an Opportunity at the Same Time

The Online Access Act (OZG) obligated the federal government, states, and municipalities to offer all administrative services digitally by the end of 2022 ^[1] . However, actual implementation is hampered by language barriers and limited resources. The OZG 2.0 reform has been driving end-to-end digitization since July 2024 and, with the DeutschlandID is a central citizen account ^[2] . Municipalities that now take action to digitize their processes benefit twice over: they comply with the legal requirements and reduce operating costs in the long term.

Artificial intelligence can support existing processes and relieve the burden on employees. Let's look at a process with multilingual communication as an example:

AI-supported processes: From appointment scheduling to document verification

1. Intelligent appointment scheduling ensures multilingual appointment scheduling and the provision of information in the desired language.
2. Multilingual appointment preparation supports employees through translated documents, intelligently pre-filled forms, and summaries from other conversations.
3. Speech recognition at the counter enables live transcription and translation, documents conversations in compliance with GDPR and provides the results in the target language.

All three steps can be meaningfully linked in an overall process, enabling holistic support for the staff in the citizen service.

Given the confidential nature of the conversations and the often sensitive data involved, data protection must, of course, be a top priority. These requirements pose significant challenges to the use of artificial intelligence for municipal services.

Data protection, GDPR & AI Act: How to keep the citizen file secure

The EU AI Regulation (AI Act) has been in force since 1 August 2024 ^[5] . High-risk systems, such as those involved in decisions on social benefits, must demonstrate additional protocols and supervisory bodies. Our recommendation is:

• Use local or EU-hosted AI platforms with audit logs.
• Privacy by Design : Data minimization, encryption & role-based access control models.
• Conduct an impact assessment in accordance with Article 35 GDPR before productive rollout.

Top 3 checklist for the use of artificial intelligence in citizen services

• ✔ In which processes is optimization important and noticeable for employees and citizens?
  • Many processes can be improved. We recommend focusing on the most important ones that make a decisive difference in service.
• ✔ Have you defined the key performance indicators to be optimized (waiting time, throughput time, satisfaction)?
  • The use of artificial intelligence is not an end in itself; improvements must be objectively measurable and demonstrate their benefits.
• ✔ Has the type of data collected, including data flows, been recorded and a data protection impact assessment started?
  • Sensitive and personal data requires special protection. When using artificial intelligence, it is essential to ensure traceability and data sovereignty.

FAQ: Two frequently asked questions about digital transformation in citizen services

Conclusion

Staff shortages persist – but digital transformation in citizen services frees up your team's time for what matters most: direct citizen consultation. With AI-supported processes, OZG-compliant end-to-end digitization, and GDPR-compliant infrastructure, municipalities optimize their citizen services and relieve the burden on their own employees – paperless, efficient, and citizen-centric.

Further reading recommendations

• Digital processes are effective – combining efficiency and data protection with local AI
• Use secure, local EU AI solutions
• Application examples & use cases for digital processes

Sources

1. BMI – Online Access Act: Basics & Obligations
2. BMI press release on the OZG 2.0 reform
3. dbb Public Service Monitor 2025 – Staff Shortages
4. Bitkom Study 2024 – Digital Administration & Citizen Satisfaction
5. EU Commission – AI Regulation enters into force (01.08.2024)
6. Section 201 of the German Criminal Code – Violation of the confidentiality of spoken words