GERMANY: Data analysis and artificial intelligence systems in the federal administration

The German SAI conducted a cross-sectional audit on the use of data analytics (DA) and artificial intelligence (AI) in the German federal administration. The German federal government intends to increasingly apply DA and AI techniques in the federal administration. It expects the federal administration to take a pioneering role. To this end, it adopted its national AI strategy in 2018. In 2021, the federal government reaffirmed its ambitions by also adopting a national data strategy.

None of the federal ministries we audited had developed tailored strategies, plans or concepts for the use of DA/AI within their areas of responsibility. Apart from a few flagship institutions, most institutions hardly used any DA/AI systems. Moreover, there was no comprehensive overview of the use of DA/AI within the federal administration.

In our audit we found that in October 2021 the federal administration was planning to operate or was already operating a total of 269 DA/AI systems. The majority were either in a project phase or already deployed. Almost half of the audited institutions had not defined internal responsibilities for DA/AI. The audited institutions intended, among other things, to improve the efficiency of their internal processes. Only a few institutions expected DA/AI usage to result in a decrease of costs. A lack of adequate data and qualified in-house specialists were identified as the greatest challenges to increasing DA/AI usage (see Figure 1). 

Figure 1: Challenges in the use of DA/AI (Source: SAI Germany)

In view of these as well as other deficiencies (cf. audit report), we considered it urgently necessary for the federal ministries to increase the efforts in their areas of responsibility to achieve the federal government's strategic objectives with regard to the use of DA/AI.

We issued the following recommendations: The federal ministries should

• examine how the use of DA/AI could be further expanded within the federal administration. Available information from flagship institutions that already make intensive use of DA/AI should be utilised.
• develop tailored strategies or plans for the use of DA/AI and subsequently derive appropriate implementation concepts.
• obtain an overview of the use of DA/AI within their respective areas of responsibility.
• address their shortage of qualified personnel.

The federal ministries responded that they already want to increase the use of DA/AI within the federal administration. Several federal ministries have drawn up corresponding strategies or are in the process of developing them. Selected federal ministries have already surveyed which DA/AI systems are used in their respective areas of responsibility. Furthermore, many federal ministries have founded data laboratories and appointed Chief Data Scientists. The federal ministries also intend to tackle the issue of staff shortages.