A new study by the Institute of German Economy (IW Köln) reveals that public administration in Germany is falling behind in developing capabilities related to Artificial Intelligence. The researchers conducted their analysis by reviewing nearly 13 million online job advertisements from the year 2025.
The results are sobering: Of a total of 190,858 job postings within the public sector, only 0.7% made mention of artificial intelligence. This places public administration significantly behind the private sector, where the presence of AI in job descriptions stands at 1.5%-more than double the public sector rate. The gap is even wider at the municipal level, where AI-related positions accounted for just 0.3%.
IW researchers and co-author Jan Büchel told the media that this low incidence of AI in job postings suggests that the efficiency gains that AI could bring to public sector modernization are not being fully utilized. An extremely alarming finding is that in 43% of Germany’s districts, not a single AI-related position has been advertised in the public administration. This indicates that AI has not yet become a broadly adopted driver for modernization in the public sector, with competence building currently concentrated only in a few pioneering agencies.
The pressure to act is increasing. Many state agencies are already complaining about staff shortages, while numerous employees are set to retire in the coming years. AI holds the potential to support public employees, especially by automating repetitive tasks. By doing so, it could free up capacity for dealing with more complex cases, which would benefit citizens and businesses through quicker processing of applications and approvals.
However, according to the authors, artificial intelligence is currently often viewed in government agencies as a purely technical IT task. Büchel emphasized that AI competence must be considered not only at the specialist level but also in leadership roles, as strategic governance and implementation of AI are managed and executed at the management level. It is crucial, he added, that AI be understood as a management challenge rather than solely a technical one. Only in this way can agencies develop shared standards, help employees adapt to change, and reduce resistance.
If the development of these necessary competencies is neglected, the skilled labor shortage is expected to worsen. Büchel warned that the acute staff shortage, which is set to intensify, puts significant pressure on the public administration. Conversely, if AI is implemented meaningfully, it could free up employee capacity, leading to shorter processing times for citizens and companies alike.
