This article addresses the ethical design of artificial intelligence (AI) in the public sector, with a particular focus on Public Employment Services (PES). While AI is increasingly employed to streamline administrative processes and improve service delivery, its application in employment mediation raises fundamental concerns regarding fairness, accountability, and democratic legitimacy. The EU Artificial Intelligence Act has further underscored the urgency of addressing these challenges by classifying employment-related AI systems as high-risk, thereby mandating robust safeguards to prevent discrimination and ensure transparency. The central aim of this study is to examine how ethical and social considerations can be systematically embedded in the development and implementation of public sector AI.
IAB-Discussion Paper 12/2025: Ethical Integration in Public Sector AI. The Case of Algorithmic Systems in the Public Employment Service in Germany