Digitalization in Germany’s local government: 2025 report
On embracing change and harnessing digital tools as the key to success. With insights and findings from over 1,000 mayors — and a wake-up call for the future.
No sustainable development without digitalization
Germany's mayors see digitalization as crucial to the future of public administration — yet nearly one third are dissatisfied with the current state of digitalization in their city or municipality.
Modernizing government is about more than digitalization — it’s about rethinking how work gets done. It’s not enough to digitalize bureaucracy; real change means questioning processes and eliminating unnecessary steps.
CW
Clemens Weidenbach
CEO, Meister
Roadblocks to digitalization: regulations, budget constraints and skilled labor shortages
For three-quarters of respondents, regulatory hurdles are the biggest obstacle to digitalization projects — ahead of funding gaps and a shortage of skilled workers.
0%
see regulatory obstacles as one of the biggest challenges in implementing digitalization projects.
0%
consider limited funding a major barrier.
54%
say there is a lack of skilled personnel to carry out digitalization initiatives.
Higher budgets, but limited impact
On one hand, more than half of cities and municipalities now have more funding for digitalization than they did three years ago. On the other, tangible progress remains limited. Respondents say software remains the area most in need of investment.
0%
say their administrative budgets for digitalization have increased over the past three years.
0%
say that the additional budget for digitalization projects will be invested in new software. More than half will use the extra funds to hire IT specialists.
0%
say that financial constraints limit investment in cybersecurity, e.g. measures to prevent cyberattacks, in their city or municipality.
Digital tools as the key to modernizing public administration
Digital tools are widely seen as an effective way to boost efficiency. The overwhelming majority of respondents believe they can help reduce the workload in public administration and simplify processes.
0%
consider digital tools (very) suitable for reducing workload and increasing efficiency in public administration.
0%
Say digital tools are mainly used to improve collaboration and automate processes.
0%
have introduced more than one new software solution in the last three years.
0%
state that high costs and fees are the biggest challenge when introducing software.
A cautious approach to automation and AI
Artificial intelligence is playing an increasingly important role. Nearly half of all municipal offices plan to adopt AI-based tools in the next two years.
0%
are introducing or planning to introduce artificial intelligence in the next two years. More than a third of those surveyed are not currently planning to introduce AI.
0%
of those introducing AI — a strong majority — plan to use it for document automation. 58% plan to use it for process automation.
0%
want to use AI to support chatbot applications. 7% see other opportunities for the use of AI in public administration.
The potential of artificial intelligence is seen primarily in reducing the workload of employees through automating manual, repetitive tasks and workflows.
Summary
Yes to digitalization — but not without a tailored approach
Digitalization requires tailored strategies that match the specific needs and digital maturity of each city or municipality. This is key to creating a clear path toward successful transformation in the public sector.
Tip
Digitalization doesn’t have to be a drain on your budget and resources. At MeisterTask, our experts work with you to develop a tailored digital strategy that fits your needs and respects your budget. Start small with a single department or project and let the tool grow with you as you go — thanks to flexible, expandable licenses that adapt to your workflow. Learn more about how we can support you as your digitalization partner.