NEW DELHI: The ministers in Germany have approved a proposal to cut down on red tape in select areas. Newly-created Ministry for Digital Affairs and State Modernization aims to leverage digital technologies including artificial intelligence (AI).

The German cabinet aims to save billions in the state and private sector.

Initial savings are expected to be at around EUR 100 million, while the proposed reforms is likely to increase efficiency.

The areas shortlisted include real estate contracts, residence registration, construction and energy efficiency certification, traffic regulations, medications, passports and identity documents, taxes and foreclosures.

The cabinet also proposed next steps by the end of 2026.

“In terms of scope, structure and thoroughness, this is the sort of result Germany hasn’t seen in many years,” German Digital Affairs and State Modernization Minister Karsten Wildberger told German business newspaper Handelsblatt.

If it turns out in the end to be five billion (in savings), I’ll be satisfied, added. 

The minister also said the government would organize a contest for start-ups to showcase ideas about automation in state administrative processes.