What is the current state of digital transformation in the Austrian public sector? What opportunities and best practices lie ahead? At the request of the Austrian Parliament, the ITA examined how this transformation could be achieved in a socially responsible manner and how the digital sovereignty of the public sector could be strengthened. The study presents the Austrian Parliament and the public sector with specific options for action.

The digital transformation of public administration is entering a new phase with AI, algorithms and data analysis. This involves developing interconnected data infrastructures and fundamentally reorienting processes and work practices. Data is increasingly utilised as a strategic resource. This 'datafication' of the state helps shape the framework conditions for government action. Against this background, the study examined the current state of digital transformation in Austrian public administration, and explored upcoming opportunities and challenges.

Technical developments and the current status quo
The waves of retirements and the generational shift within the public sector workforce are bringing the potential of current technological trends for public administration into focus. These include generative AI, automated processes, one-stop-shop systems, open-source solutions, and cloud technology. The digital transformation of Austrian public administration is based on infrastructural building blocks such as electronic files (ELAK), ID Austria and the Digital Austria Data Exchange (dadeX), which facilitates data exchange between public authorities. There are also new developments in data analysis and algorithmic decision support.

Cooperation in the federal political system
In Austria, a key focus of strategic decision-making is cooperation between the various levels of government and the federal ministry departments. Experience from digitalisation experts in federal ministries, the Federal Chancellery, the Federal States, and the Parliamentary Directorate shows that interdisciplinary and collaborative processes – such as, joint procurement, learning and exchange initiatives, and project implementation – can promote knowledge transfer, a people-centred approach, and cost savings in the long term.

Best practices
The ITA project developed best-practice criteria for the Austrian public administration based on promising transformation projects in Estonia, Denmark, Finland, the Netherlands, France, Germany and Switzerland. These range from people-centred development and interoperable data infrastructures to democratic oversight of AI, algorithmic decision-making, and data analysis.

Digital sovereignty
Current geopolitical tensions and dependence on major technology companies have underscored the importance of strengthening digital sovereignty. Austria and Europe are seeking to reduce their reliance on non-European actors, safeguard sensitive data, and establish robust and sustainable infrastructures. The study emphasises the importance of open-source technologies and strategic capabilities, such as developing in-house technologies and diversifying supply chains. Secure and sovereign digitalisation also requires coordinated cooperation between EU member states, as well as interoperable solutions developed by networks of small businesses, research institutions, and the public sector.

Policy options
The final project report presents specific policy options for the Austrian Parliament and the public administration, which cover five areas:
•    Promoting digital sovereignty
•    Cooperation across government levels and the federal ministry departments
•    Employees as the driving force behind the digital transformation
•    Putting citizens at the centre
•    Accompanying research and evaluation

The policy options contribute to a socially responsible and digitally sovereign transformation of the public administration. This includes the targeted use of open-source technologies. Using open-source technologies requires clear strategies and a legal framework, and can strengthen resilience and minimise existing dependencies. A sustainable digital transformation that pools resources and builds trust in political institutions requires a people-centred approach. Public sector staff should be involved from the outset, and the everyday realities of citizens should be taken into account. The use of decision-making tools based on AI, algorithms and data analysis also requires transparency, clear rules and defined responsibilities. Ongoing evaluation and monitoring are essential to limit unintended consequences, such as errors, bias and discrimination, at an early stage.

These findings were gathered through a literature review and review of relevant documents, a semi-standardised questionnaire, a focus group workshop, semi-structured interviews with experts, and a further stakeholder workshop, incorporating a SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats).