Omnifact.AI: How a Frankfurt-based AI company is rethinking the public sector – and why the market demands it

From pilot project to practical application: Omnifact shows how AI works in regulated authorities

The wave of generative artificial intelligence has swept through virtually every industry in recent years. Companies of all sizes have launched AI projects, allocated budgets, and set up pilot programs. But what began as technological euphoria now faces its toughest test: demonstrating its actual economic value. Leading analysts predict that 2026 will mark the turning point from experimentation to structured business operations – and with it, the inevitable market consolidation will begin.

For many organizations, this translates into a sobering outcome: the projects were underway, but the results fell short of expectations. The reason is rarely the AI ​​technology itself, but rather the framework within which it is deployed. Data privacy concerns, a lack of compliance structures, unclear responsibilities, and the blind adoption of consumer products like ChatGPT have led to a fundamental problem in regulated environments—government agencies, banks, insurance companies, and healthcare institutions: powerful AI tools are being used, but under conditions that are legally questionable and organizationally uncontrollable.

Omnifact is filling precisely this gap – and doing so with a clarity that is still rarely found in the German AI market.

Foundation from the regulated world: The origins of Omnifact

Omnifact is not a Silicon Valley product, a Berlin-based startup with fresh investor funding, or a spin-off from academic research. The Frankfurt-based company grew out of a specific problem that its founders, Patrick Helmig and Florian Reifschneider, knew from years of practical experience. For over a decade, they developed customized data science and machine learning solutions for large corporations operating in highly regulated environments – for banks, insurance companies, and pharmaceutical firms, in other words, for sectors where a single compliance violation can have existential consequences.

When generative AI with ChatGPT began to sweep through the business landscape in late 2022, the founders experienced firsthand how their customers reacted: with fascination for the new technology and simultaneous paralysis due to data privacy risks. Helmig and Reifschneider's initial response was pragmatic: they built a so-called privacy filter that pseudonymizes personal data before it even reaches an AI model. This technical component laid the foundation for what now distinguishes the entire Omnifact platform.

Omnifact GmbH was founded in April 2023 and registered in the commercial register at the Frankfurt am Main District Court in June of the same year. The company is headquartered at Hansaallee 154 in Frankfurt am Main, in the heart of one of Europe's most important financial centers – a location perfectly suited to the company's target clientele.

What Omnifact is and what it is not

The simplest description is: Omnifact is a privacy-focused, all-in-one AI platform for companies and organizations with the highest demands for security, compliance, and control. However, this definition overlooks the crucial difference to the dozens of AI interfaces currently competing in the market.

Omnifact is not just another AI frontend that hides powerful language models behind a clean user interface and gives the user the impression that they have solved all privacy concerns. The fundamental difference lies in the architecture: Omnifact treats privacy not as an afterthought, but as a constructive foundation upon which the entire platform is built.

Specifically, this means that before a request, document, or file leaves the Omnifact system and is sent to an external AI model, it passes through the Omnifact Privacy Filter. This filter automatically detects sensitive information—names, addresses, phone numbers, account numbers, health data—and replaces it with generic placeholders. The external model therefore never receives the actual data, but only anonymized versions. After processing by the AI ​​model, the placeholders are replaced with the original information, ensuring the response remains complete and meaningful for the user. This process is enabled by default and runs invisibly in the background for the end user.

Furthermore, the company has obtained ISO/IEC 27001:2022 certification, including its platform, infrastructure, and internal processes. This independent audit is more than just a marketing label: for many government agencies and regulated companies, it is a minimum requirement without which a procurement process cannot even begin. In addition, Omnifact has negotiated so-called zero data retention agreements with its AI model providers, ensuring that the processed data is not used to train future models—a guarantee that is extremely difficult to obtain on the open market.

Infrastructure without detours: EU hosting and data sovereignty

Another structural advantage that Omnifact offers its customers is its consistent reliance on European infrastructure. The platform is hosted in Germany, and the data remains within EU jurisdictions. This decision is not merely a marketing statement, but a direct response to a legal reality that many organizations still underestimate.

Recent court-ordered data retention rulings by US courts have demonstrated that AI providers' privacy promises are legally contestable: In May 2025, a US court ordered OpenAI to archive all ChatGPT conversations – including those that had already been deleted. For companies and government agencies that have processed sensitive information through ChatGPT-like systems, this represents an unforeseen exposure to legal proceedings they cannot influence.

This context makes it clear why Omnifact's EU hosting is not just a nice-to-have, but a genuine risk management tool. Anyone who wants to ensure their data is never subject to foreign jurisdiction must rely on infrastructure operated within the EU and governed by European law. Omnifact also offers the option of self-hosting, meaning the complete operation of the platform within the customer's own infrastructure – an approach that guarantees maximum data sovereignty and is essential for particularly sensitive use cases.

The model ecosystem: Provider independence as a strategy

One of the most important strategic decisions Omnifact has made is its consistent vendor independence. The platform integrates market-leading models from OpenAI, Anthropic, Mistral, and Google, preferably in their EU-hosted versions. This means that users don't have to commit to a single provider but can choose the most suitable model for their specific task.

This architectural decision is forward-thinking. The AI ​​market will continue to specialize: While large, general-purpose models will remain suitable for complex tasks like analysis, text generation, or research, smaller, specialized models will be more economical and energy-efficient for repetitive, routine tasks. It makes no sense to mobilize the full computing power of one of the world's largest language models for sorting forms or classifying incoming mail. Omnifact is designed to adapt to this development and protect customers from premature model binding.

Open-source models are playing an increasingly important role. After being temporarily removed from the platform due to qualitative shortcomings compared to commercial models, they are now being gradually reintegrated – because they have caught up in terms of quality. The discussion surrounding models of Chinese origin, such as DeepSeek, reflects the broader political tension: In the public sector, there is a preference for European, or at least non-Chinese, models – which significantly limits the available options.

The target group: Wherever the pressure to act is greatest

Omnifact primarily targets the public sector and regulated industries such as banks, insurance companies, and healthcare institutions. Its client profile ranges from federal and state agencies to municipalities and public utilities – organizations typically with 300 to 5,000 employees. According to Omnifact, it has already acquired over 100 clients within this spectrum.

The fact that the public sector has become the primary target group has solid reasons that go far beyond this clientele's mere affinity for data privacy. The German public service is facing a demographic turning point: According to the German Civil Service Federation (dbb), the public sector is short approximately 570,000 employees, and this number is rising. In the next ten years, almost 30 percent of employees will retire. At the same time, competition with the private sector for qualified young talent is intensifying.

This staff shortage coincides with a growing workload: more citizen inquiries, more complex regulations, and rising expectations for digital services. The only structural solution to this dilemma—greater efficiency with fewer staff—is automation. And AI is the only tool capable of delivering this automation in knowledge-intensive, language-based administrative processes.

That this realization has taken hold in public administration is demonstrated by the figures from the ThemenRadar 2026, the annual survey conducted by the Competence Center for Public IT at the Fraunhofer Institute FOKUS in cooperation with Behörden Spiegel: Only 18 percent of the public employees surveyed currently do not use generative AI tools. Almost 44 percent already receive generative AI applications officially from their organization – a significant increase compared to the previous year.

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Omnifact Spaces: Knowledge management for administrative reality

In addition to the AI ​​chat with integrated privacy filter, Omnifact Spaces is one of its core product components. Spaces allows users to transform internal documents and data sources into secure, interactive AI assistants. The underlying concept is called Retrieval Augmented Generation (RAG): Instead of having an AI model respond to general training data, RAG links the model's response to specific, internal customer documents.

For a local government or federal agency, this means in practice that employees can ask questions about their own administrative regulations, service instructions, statutes, or internal guidelines and receive precise, source-based answers—without having to spend hours searching through document archives. The latest version of Omnifact Spaces automatically analyzes the content of uploaded documents and independently generates an intelligent summary that helps the system answer queries even more accurately. This largely eliminates the manual configuration effort that has previously made such systems too complex for many organizations.

Data protection and compliance remain fully guaranteed within the Spaces context. The knowledge base can be operated entirely within the customer's own infrastructure. Each space can be managed independently by teams and departments without requiring IT expertise – a necessity in public authorities where central IT resources are chronically understaffed.

The regulatory environment: EU AI Act and GDPR as drivers

Omnifact's business model benefits from unprecedented regulatory support. Since 2018, the GDPR has established the data protection framework that applies to all AI applications in the EU. The EU AI Act, which came into force in August 2024 and is gradually becoming binding, further tightens the requirements for AI systems – especially for high-risk applications in the public sector.

For authorities and regulated companies, this framework creates a clear directive: AI may only be used under conditions that guarantee GDPR compliance, transparency, and traceability. This is precisely Omnifact's core promise. The platform was designed from the ground up to meet these regulatory requirements, while many competitors had to integrate compliance as an add-on.

The consequence: Customers working with Omnifact don't have to check themselves whether their use of AI is legally compliant. The platform's architecture relieves them of this burden. In an environment where data protection officers in municipalities and public authorities are overburdened and legal uncertainties regularly lead to AI moratoriums, this is a crucial competitive advantage.

The AI ​​market in 2026: Consolidation as an opportunity for specialists

It would be too simplistic to understand Omnifact's positioning solely as a reaction to regulatory requirements. Behind the business model lies a clear market thesis that is increasingly gaining traction.

The global enterprise AI market is expected to grow at an annualized rate of approximately 37.9 percent until 2031. However, overall market growth does not mean that all vendors will benefit equally. On the contrary, two parallel developments will shape the market in 2026: consolidation among large platforms and increasing specialization among niche providers. The phase in which every organization tried out as many different AI tools as possible is drawing to a close. What follows is a focused decision in favor of a few, trusted platforms with a clear value proposition.

For the public sector, this means that those in charge will soon no longer be asked whether they use AI, but rather what measurable benefits they achieve and whether its use is legally sound. This shift in the question of legitimacy is Omnifact's natural habitat. While many AI providers are still struggling to overcome the hurdle of GDPR compliance, Omnifact has already taken this step and focused on the next question: How can AI concretely reduce workload and streamline processes in complex, document-intensive organizations?

Geopolitical dynamics are also playing a role. The demand for technological sovereignty—for AI solutions that operate without US hyperscalers and whose infrastructure is subject to European law—is no longer just a political preference in the public sector, but is increasingly becoming a procurement requirement. The energy infrastructure problem that is hindering the development of large GPU clusters in Germany—Frankfurt, for example, has data center capacity but not sufficient power for high-intensity AI hardware—has prompted Omnifact to establish cooperative partnerships outside metropolitan areas, where sufficient electricity is available.

Product architecture overview

Omnifact's strength lies in the integration of several building blocks that together form a complete enterprise AI infrastructure:

• The Omnifact Privacy Filter is the heart of the platform. It automatically pseudonymizes sensitive information in real time before it reaches an AI model and reconstructs the original data in the response – invisible to the user, but effective against any data breach.
• Omnifact Chat enables GDPR-compliant access to market-leading speech models (OpenAI, Anthropic, Google, Mistral) within a secure enterprise environment. Customers can choose between different models and select the most suitable one for various use cases.
• Omnifact Spaces enables the transformation of internal documents into AI-powered knowledge assistants using its own RAG pipeline. Teams can create and manage their own spaces without IT dependencies.

Integration into existing systems is achieved via standardized APIs that enable connection to CRM, DMS, and databases, complemented by single sign-on, a granular authorization concept, and multi-tenancy. The latter is particularly important for public authorities with various organizational units, differing access rights, and strict internal separation requirements.

Visibility and growth: A company in development

Anyone googling Omnifact today will find that the company's public image doesn't yet reflect its market position. Over 100 clients, including federal agencies and municipalities, is an impressive track record for a company founded only in 2023 – especially since procurement processes in the public sector are notoriously lengthy and require overcoming significant hurdles of trust and compliance.

The fact that market presence and visibility within the professional community still lag behind these figures is not a quality issue, but rather a typical characteristic of companies that have grown from technical implementation and whose founders have thus far invested their energy in product development and customer support. CEO Patrick Helmig himself articulated this finding and emphasized that marketing has not been the company's absolute strength to date – but it is one that they are actively working on.

For industry observers, this is less a deficiency than a sign of substance. Companies that first build their product and customer base and then their communication visibility generally have a more stable foundation than those that proceed in reverse order. The fact that Patrick Helmig sat on the panel as an expert at the FAZ Institute's AI Innovation Summit at the end of 2024 shows that recognition within the professional community already exists – even if it is not yet visible to the general public.

Why Omnifact hits the right moment

The structural starting point could hardly be more favorable for Omnifact. On the demand side, there is a public sector suffering from a massive staff shortage, simultaneously tasked with digitizing its administrative processes, and increasingly recognizing AI as the only tool for scaling. On the regulatory side, the EU AI Act, in conjunction with the GDPR, creates an environment in which compliance-first solutions are systematically favored over rapidly developed, data protection-unsafe alternatives. On the technological side, the consolidation of the AI ​​model market ensures that platform providers who remain model-independent have an advantage over those who rely on a single provider.

What sets Omnifact apart from many competitors is not just the technology – after all, other providers also use the same models from OpenAI, Anthropic, or Mistral. The difference lies in its consistent focus on the specific needs of regulated organizations: the combination of a robust technical data protection architecture, ISO certification, EU hosting, zero data retention, and a platform that can be used without in-depth technical expertise.

The public sector in Germany no longer needs AI experiments – it needs AI that works, is legally compliant, and can be used by administrative staff without programming skills. Omnifact is designed to meet precisely these requirements.

Looking ahead: Specialization as the next frontier

The evolution of the AI ​​market will present Omnifact with new challenges, but also open up new opportunities. The model landscape will become increasingly differentiated: In addition to large, general-purpose models, highly specialized models for specific tasks will emerge – more efficient, cost-effective solutions for clearly defined use cases. A platform that is already vendor-independent and can quickly integrate new models is well-positioned for this world.

The infrastructure issue – particularly the availability of data center capacity with sufficient power supply in Germany and Europe – remains a structural obstacle affecting Omnifact as well as all European AI companies. Germany's power grids are operating at near capacity nationwide, significantly hindering the development of its own AI infrastructure. The solution – partnerships with locations outside metropolitan areas – is pragmatic, but not a long-term answer to the question of true technological sovereignty.

What remains is a company that is in the right place at the right time with the right approach. In a world where AI promises have become inflationary and the disillusionment phase is beginning, a sober focus on demonstrable data protection compliance, technical reliability, and genuine organizational benefits is not a niche strategy – but rather what the market will demand next.

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