Austria is strengthening its commitment to digital transformation by increasing investment in key digital infrastructure and services. Government officials have outlined a targeted budget that seeks to modernise public administration, streamline bureaucratic processes, and expand access to digital services for citizens and businesses.

Strategic Investments to Advance Digital Services

The current digitalisation strategy aims to elevate Austria from its already strong sixth-place position in the latest EU digitalisation ranking to one of the top three digital nations in Europe. Authorities are focusing on projects designed to deliver tangible benefits to the population, enhance the efficiency of the state, and ensure long-term competitiveness.

Central to this strategy is the expansion of digital identity solutions, including the further development of ID Austria and the implementation of the European EUDI-Wallet. These efforts are complemented by initiatives to integrate digital registers, reduce administrative overhead, and responsibly incorporate artificial intelligence (AI) into public administration.

Budget Allocation and Project Priorities

The digitalisation budget is set to increase significantly over the next two years. For 2027, an allocation of 106 million euros has been approved, rising to 111.5 million euros in 2028. Additional funding is earmarked for AI applications in the public sector, with 6 million euros in 2027 and 8.5 million euros in 2028. Projects focused on improving register integration will receive up to 5 million euros in 2027 and 10 million euros in 2028. These allocations bring the total potential budget to 117 million euros in 2027 and 130 million euros in 2028, representing a substantial boost compared to previous years.

As part of the efficiency drive, 20 percent of savings achieved through digitalisation--specifically from natural staff attrition--will be reinvested into further digital improvements. By 2030, this is expected to contribute an additional 108 million euros towards digital infrastructure, new services, and competitiveness enhancements.

Key Areas of Focus

• Enhancement of ID Austria and rollout of the EUDI-Wallet for secure digital identification
• Implementation of 'Once-Only' principles and digital register integration through the dadeX platform
• Continued investment in digital skills through the national Digital Competence Initiative
• Expansion of AI-based tools to modernise and secure public administration

Expanding Digital Identity Solutions

ID Austria has emerged as a cornerstone of Austria's digital public services. Its user base has expanded from just over one million in 2023 to more than six million by 2026. The government's ambition is to extend this service to up to nine million users by 2030, ensuring that all residents who wish to access secure and user-friendly digital identification can do so. The EUDI-Wallet will provide further options for digital credentials and cross-border administrative transactions within Europe.

Reducing Bureaucracy through Register Integration

The 'Once-Only' policy is designed to minimise administrative duplication by enabling citizens and businesses to submit data to public authorities only once. The dadeX platform will serve as the backbone for secure, purpose-driven, and controlled data exchanges between government registers. Investments totalling approximately 15 million euros over 2027 and 2028 are expected to unlock savings of up to 160 million euros by reducing bureaucracy and expediting administrative procedures.

Building Digital Competencies and Responsible AI Adoption

In addition to technological upgrades, the government is emphasising the importance of digital literacy. The Digital Competence Initiative aims to empower the public to effectively, safely, and confidently use digital services, while also promoting awareness of digital risks and the potential of artificial intelligence.

The introduction of AI in public administration is also a response to demographic challenges, with nearly half of federal employees projected to retire over the next 13 years. AI-enabled tools are expected to streamline routine processes, improve knowledge management, and allow the public sector to maintain high service standards despite workforce reductions.

These strategic investments underline Austria's intention to create a more modern, resilient, and efficient digital state, benefiting both its residents and businesses through enhanced services and reduced administrative complexity.