What is OZG 2.0 and why is it important?

The Online Access Act (OZG) has obligated the federal government, states, and municipalities since 2017 to offer their administrative services digitally. After the original deadline at the end of 2022, it quickly became clear: the goals were only partially achieved. OZG 2.0, whose draft was presented in spring 2023, sets the course for a fundamental reorientation of administrative digitalization.

The core idea remains: citizens and businesses should be able to use administrative services completely digitally and without media breaks. However, OZG 2.0 goes far beyond previous approaches. It integrates modern technologies such as artificial intelligence, focuses on consistent user orientation, and creates legal frameworks for genuine digital transformation.

The most important differences between OZG 1.0 and OZG 2.0

While the original OZG primarily focused on digitizing individual administrative services, OZG 2.0 pursues a more holistic approach. The differences can be summarized across several dimensions:

  • From service orientation to user orientation: Instead of mapping 575 individual administrative services, OZG 2.0 is oriented toward concrete life and business situations of users.
  • Once-Only Principle: Data already available to the administration does not need to be submitted again – a legal anchoring of this principle is central to OZG 2.0.
  • Automation and AI: For the first time, intelligent systems are explicitly considered as tools for more efficient administrative processes.
  • Register modernization: The networking of data registers is being advanced to enable data exchange between authorities.
  • Binding standards: Stronger standardization and harmonization of IT architectures across administrative levels.

Legal foundations and timeline

OZG 2.0 builds on the existing Online Access Act and supplements it with new regulations in the Administrative Procedure Act (VwVfG), the E-Government Act (EGovG), and other specialized laws. Implementation takes place in several phases:

  • From 2024: Entry into force of new legal regulations
  • By end of 2025: Provision of central digital identities and basic services
  • By end of 2028: Implementation of priority administrative services
  • Long-term: Continuous further development and optimization

Particularly significant is the expanded authority of the federal government to establish uniform standards. This is intended to overcome the federal fragmentation that was considered the main obstacle in OZG 1.0.

Artificial Intelligence in public administration

The use of Artificial Intelligence becomes a strategic component of administrative modernization in the context of OZG 2.0. AI technologies offer the potential to fundamentally change administrative processes – from processing applications to decision-making to communication with citizens.

Fields of AI application in e-government

In practice, various areas of application are emerging where AI can generate added value today or in the near future:

Intelligent document processing: AI-based systems can automatically classify incoming documents, extract relevant information, and convert it into structured data formats. This significantly reduces manual effort in application processing and accelerates processes.

Chatbots and virtual assistants: Conversational AI makes it possible to answer citizen inquiries around the clock, guide people through application procedures, and clarify frequently asked questions. This relieves staff and simultaneously improves service quality.

Predictive analytics: Forecasting models can help plan resources better, anticipate needs, or identify risks early – for example in urban planning or social services.

Automated decision support: AI systems can prepare rule-based administrative decisions or even make them independently in clearly defined cases, with legal frameworks and human oversight remaining essential.

Process optimization: Machine learning can analyze administrative processes, identify bottlenecks, and highlight optimization potential.

Legal frameworks for AI deployment

The use of AI in public administration operates in a complex legal tension field. Several regulatory frameworks are relevant here:

EU AI Regulation (AI Act): The European AI Regulation classifies many government applications as high-risk AI. This means strict requirements for transparency, documentation, human oversight, and quality management. Authorities must be able to demonstrate that deployed systems operate without discrimination and meet fundamental rights standards.

General Data Protection Regulation (GDPR): AI systems often process personal data. The GDPR requires legal bases for processing, transparency toward those affected, and the right to explanation of automated decisions.

Administrative procedure law: Fully automated administrative acts are fundamentally possible but subject to narrow conditions. In particular, a right to object must be guaranteed, and the decision must remain subject to human review.

Within the framework of OZG 2.0, these requirements are specified and made practical. The goal is to create legal certainty without stifling innovation potential.

Ethical requirements and bias avoidance

Beyond legal aspects, ethical considerations play a central role. AI systems can reproduce or even amplify existing discrimination if they are trained with skewed data or if their decision logic is not sufficiently reviewed.

Administrations must therefore exercise special care:

  • Diversity in training data: Datasets must be representative and may not contain systematic biases.
  • Regular audits: AI systems should be continuously checked for discriminatory patterns.
  • Transparency: Citizens must be able to understand why an AI made or recommended a particular decision.
  • Human final decision: For sensitive decisions with significant impacts on individual rights, a human should always bear final responsibility.

Technological infrastructure and standards

The successful implementation of OZG 2.0 depends largely on a powerful and interoperable technological infrastructure. Various technical components must work seamlessly together to enable end-to-end digital administrative services.

The portal network concept

The portal network forms the backbone of OZG implementation. It connects the administrative portals of the federal government, states, and municipalities into a cohesive ecosystem. Users should be able to access all administrative services through any portal, regardless of which level is responsible.

Technically, the portal network is based on:

  • Standardized interfaces: APIs enable data exchange between different systems according to uniform specifications.
  • A shared service catalog: All available administrative services are centrally recorded and described.
  • Federated identity: Users can authenticate once and then use all services (Single Sign-On).
  • Message standards: The XÖV standard (XML in public administration) ensures uniform data formats.

Service account and digital identities

The Service Account Bund (formerly Citizen Account) serves as the central digital identity for interaction with authorities. It enables:

  • Secure authentication across various trust levels (from simple login to qualified electronic signature)
  • Management of personal data and documents
  • Messaging function for secure communication with authorities
  • Overview of pending applications and their status

Connection is made via the eID service, which integrates various means of identification: from the electronic ID card (eID) to Elster to private login services that comply with eIDAS standards.

Register modernization and data exchange

The Once-Only Principle requires that authorities can access already available data instead of repeatedly asking citizens for the same information. This requires comprehensive register modernization:

Register landscape: Germany has numerous registers – from the registry office to the commercial register to the vehicle register. These must be technically and legally equipped for data exchange.

Register Modernization Act: This act creates the legal basis for introducing the tax identification number as an overarching identifier and regulates data exchange between registers.

Data protection cockpit: Citizens should be able to transparently see which authority accessed which of their data and when. This builds trust and meets GDPR transparency requirements.

IT security and trust services

The digitalization of administration dramatically increases IT security requirements. Central components include:

  • Encryption: All sensitive data transfers must be end-to-end encrypted.
  • Qualified electronic signatures: Secure signature procedures are required for legally binding transactions.
  • BSI standards: The Federal Office for Information Security sets mandatory security standards.
  • Penetration tests and audits: Regular security reviews are essential.
  • Contingency plans: Continuity plans must be in place for system failures and cyberattacks.

Implementation strategies for authorities

Successful implementation of OZG 2.0 requires a strategic and methodical approach from authorities at all levels. Technology alone is not sufficient – organizational changes, new competencies, and cultural change are needed.

Organizational prerequisites

Administrative digitalization is a management priority. Successful authorities establish clear governance structures:

Digitalization officers: One person or team should bear overall responsibility for OZG implementation, report directly to leadership, and be able to act across departments.

Interdisciplinary teams: Digitalization projects require cooperation between subject matter experts, IT specialists, lawyers, and UX designers. Silo thinking must be overcome.

Agile methods: Instead of multi-year waterfall projects, modern administrations rely on iterative development with regular releases and user feedback.

Change management: Employees must be prepared for changes, trained, and brought along. Fears about job loss due to automation should be addressed by showing new roles and perspectives.

Prioritization and roadmap development

Not all administrative services can be digitalized simultaneously. Meaningful prioritization is based on several criteria:

  • Frequency of use: Services frequently used have high priority.
  • Impact: Which digitalization provides the greatest benefit for citizens and business?
  • Complexity: Simpler services can create quick wins and motivation, more complex ones require more preparation.
  • Media breaks: Processes with many media breaks benefit particularly from digitalization.
  • Legal requirements: Some services must be prioritized for implementation.

A transparent roadmap helps manage expectations and make progress measurable.

User-centered development

A central paradigm shift of OZG 2.0 is consistent user orientation. Administrative digitalization should be oriented toward the needs and expectations of end users, not internal administrative structures.

User research: Before development, it should be determined who the users are, what needs they have, and where current pain points lie. Methods include interviews, surveys, and observations.

Prototyping and testing: Early prototypes should be tested with real users to identify usability problems early.

Accessibility: Digital administrative services must be accessible to everyone, including people with disabilities. The Barrier-Free Information Technology Regulation (BITV) sets standards.

Mobile First: Many users today primarily access digital services via smartphones. Responsive design is not a nice-to-have but a requirement.

Reuse and cooperation

A core idea of OZG 2.0 is avoiding duplicate work through reuse of already developed solutions:

One-for-All Principle (EfA): A lead authority develops a solution that other authorities can then reuse. This saves resources and promotes standardization.

Open source: Public administration increasingly relies on open-source software that is transparent, adaptable, and can be further developed collectively.

Platforms and marketplaces: Central platforms such as the FIT-Store offer reusable components and modules.

Intercommunal cooperation: Particularly smaller municipalities benefit from cooperation and can jointly develop or procure solutions.

Challenges and risks

Despite ambitious goals and improved frameworks, the implementation of OZG 2.0 remains a Herculean task. Various challenges must be addressed to achieve the goals.

Federal complexity

Germany's federal structure is both a strength and a challenge. The federal government, 16 states, and over 10,000 municipalities must work together, with each level having its own responsibilities, priorities, and IT landscapes.

Different specialized procedures, process variants, and legal interpretations complicate standardization. While OZG 2.0 strengthens the federal government's standard-setting authority, the balance between uniform standards and regional self-determination remains a difficult tightrope.

Legacy systems and technical debt

Many administrations work with outdated IT systems that are sometimes decades old. These legacy systems often are:

  • Poorly documented and understood by only a few specialists
  • Not designed for modern requirements such as API connections or cloud operation
  • Associated with high maintenance costs
  • Risky in terms of IT security

Modernizing these systems is laborious and costly, but unavoidable. Complete redevelopment is often not realistic, so strategies for gradual migration must be developed.

Shortage of skilled workers and competency building

The public sector competes with the private sector for IT specialists – and often comes up short. Attractive salaries, modern working practices, and innovative projects are more likely to be found in technology companies than in government agencies.

At the same time, administrations need not only developers but also:

  • UX designers for user-centered design
  • Data scientists for AI projects
  • IT architects for complex system landscapes
  • IT security experts
  • Product owners and project managers with digital competence

Solutions include more attractive working conditions, further education programs, external consulting, and cooperation with service providers – although core competencies should remain in the administration.

Funding and resources

Digitalization requires substantial investments – in technology, personnel, and organizational development. While the federal government establishes funding programs, funds are often limited and associated with bureaucratic hurdles.

Particularly smaller municipalities struggle with tight budgets and often cannot raise the required matching funds. At the same time, pressure is increasing as citizens and businesses expect digital services.

Another problem: digitalization initially causes costs before efficiency gains are realized. This investment phase must be financially accounted for and politically secured.

Data protection and acceptance

German citizens are sensitive about data protection. Every new digital solution must meet the highest data protection standards and transparently communicate how personal data is handled.

At the same time, there are reservations about excessive automation and the "transparent citizen." Finding the balance between service quality, efficiency, and data protection is a constant challenge.

Trust must be built through:

  • Transparent communication
  • Verifiable security measures
  • Data sovereignty for citizens
  • Voluntary digital offerings (parallel analog channels)

Best practices and success stories

Despite all challenges, there are already numerous positive examples of successful administrative digitalization from which others can learn.

Municipal pioneers

Hamburg: The Hansestadt is considered a digital model city. The transparency portal provides comprehensive access to administrative data, the Hamburg Gateway enables a central digital platform for administrative services, and the city consistently relies on open standards and open source.

Munich: With the "LiMux" project, Munich gained early experience with open source. Although the project was later modified, valuable insights emerged. Currently, Munich focuses on user-friendly online services and has already digitalized over 200 services.

Nordhausen District: As a smaller local authority, Nordhausen demonstrates that progress is possible even without huge budgets – through clever prioritization, reuse of existing solutions, and consistent process optimization before digitalization.

Sectoral success stories

Digital building permit: In various states, building applications can now be submitted and processed entirely digitally. This significantly reduces processing times and makes procedures more transparent.

Online vehicle registration: Internet-based vehicle registration (i-Kfz) enables registration, transfer, and deregistration of vehicles without a visit to a government office. Millions of transactions are already being handled digitally.

Elster: The electronic tax return system is one of Germany's most successful e-government projects. Over 90 percent of tax returns are now filed digitally.

Lessons learned from pilot projects

Recurring success factors can be derived from successful digitalization projects:

  • Clear commitment from leadership: Projects often fail due to lack of support from management.
  • Early user involvement: Solutions developed without user feedback often miss the mark.
  • Process optimization before digitalization: Inefficient analog processes don't automatically become good through digitalization – first optimize, then digitalize.
  • Iterative approach: Grand plans often fail more frequently than incremental improvements.
  • Openness to reuse: Don't reinvent the wheel; rely on proven solutions.
  • Realistic scheduling: Digitalization takes time – unrealistic deadlines lead to quality problems.

Outlook: The administration of tomorrow

OZG 2.0 is not an endpoint but an important milestone on the path to a fully digital, service-oriented administration. Several trends will shape further development.

Proactive administration

The vision of proactive administration goes beyond merely digitizing existing processes. Instead of waiting for citizens to apply for services, authorities will proactively approach them in the future:

When a child is born, the administration could automatically offer relevant benefits such as child benefit, parental allowance, or childcare places – without parents having to file each application individually. With moves, the new address could be automatically transmitted to all relevant parties.

This requires intelligent systems that recognize life situations, network relevant registers, and maintain data protection standards. AI can play a key role here by recognizing patterns and suggesting appropriate services.

European integration

Administrative digitalization doesn't end at national borders. The EU is advancing cross-border interoperability through various initiatives:

Single Digital Gateway: This EU regulation requires member states to make important administrative services available online and cross-border.

eIDAS: The eIDAS Regulation creates a legal framework for electronic identification and trust services in the EU internal market.

Once-Only Technical System (OOTS): This system should make it possible for certificates from one EU country to be electronically retrieved in another.

German authorities must design their systems to be compatible with these European infrastructures.

Further development of AI use

AI development is progressing rapidly. Technologies that are still experimental today could become standard within a few years:

Large language models: Advanced language models could understand natural language applications, automatically generate documents, and answer complex inquiries.

Computer vision: Image recognition systems could automatically analyze and classify documents, buildings, or facts.

Multimodal AI: Systems that integrate text, image, speech, and other modalities enable entirely new forms of interaction.

At the same time, regulation and ethical standards are being further developed. The balance between innovation and risk control will remain an ongoing task.

Sustainability and green IT

Digitalization is not inherently sustainable. Data centers consume considerable amounts of energy, hardware production strains the environment. Public administration has a leading role here:

  • Energy-efficient data centers powered by renewable energy
  • Longer hardware usage cycles
  • Paper reduction through consistent digitalization
  • Video conferences instead of business travel
  • Sustainability criteria in procurement processes

Continuous improvement and learning

Administrative digitalization is not a completed project but a continuous process. Technologies evolve, user expectations rise, new challenges emerge.

Successful authorities establish cultures of continuous learning:

  • Regular evaluation and optimization of digital services
  • Monitoring usage behavior and satisfaction
  • Exchange with other authorities and international best practices
  • Experimental spaces for new technologies and approaches
  • Openness to failure and learning from setbacks

OZG 2.0 offers the opportunity to fundamentally modernize public administration – more efficient, service-oriented, and future-proof. The path is challenging, but with the right strategy, sufficient resources, and the will to change, the ambitious goals can be achieved. The integration of AI technologies will not only accelerate processes but enable new forms of administration that seemed unthinkable just a few years ago.

It is crucial that digitalization is not understood as a purely technical project but as a comprehensive transformation that involves people, processes, and culture equally. Only this way can the vision of a truly digital, citizen-oriented administration become reality.