Governments worldwide have been committed to boosting efficiency and productivity through various reform efforts. From the use of cutting-edge technology a century ago to the recent digital transformation, governments have made strides in improving performance. The advent of artificial intelligence has further enhanced productivity, with AI technologies being used to detect fraud, reduce costs, and streamline processes. The US Internal Revenue Service (IRS) is an example of how technology upgrades and AI implementation can improve government productivity. Life event-based service delivery and data integration have also been key factors in driving efficiency. The use of generative AI has the potential to further automate tasks and create valuable partnerships between humans and machines. However, challenges remain in developing and scaling AI applications and addressing the AI talent shortage in government. Overall, the combination of technology, policy, and process tools has the potential to drive deep productivity improvement in government.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Governments focused on efficiency and productivity | Digital transformation and adoption of AI | More streamlined, efficient, and AI-driven government processes | Improve performance and better serve citizens |
| Governments have reached digital footing | Mainstream adoption of cloud computing and open-source development | Continued advancements in digital infrastructure and increased efficiency | Cost-cutting and increased efficiency |
| Governments using AI technologies for efficiency | Leveraging AI for fraud detection, cost reduction, and improved resource optimization | AI technologies have become more advanced and prevalent in government systems | Increased focus on improving efficiency and productivity |
| Government agencies driving 10x improvements | Strengthening digital infrastructure, breaking down silos, embedding AI capabilities | Improved operational efficiency, streamlined processes, and accelerated digital transformation | Achieving more with the same inputs, leveraging technology solutions |
| Life event-based service delivery becoming more efficient | Automation, improved data-sharing, and digital technologies | Simplified processes, reduced duplication, and accelerated digital transformation | Improved data integration and governance practices |
| AI technologies revolutionizing public sector operations | Automating routine tasks, enabling employees to focus on higher-value work | More personalized and efficient services, increased collaboration between humans and AI | Advances in AI technologies and the need for improved efficiency |
| AI talent shortage in government | Bridging the gap through training programs, improving data literacy skills | Increased availability of tech talent and improved data literacy in government | The need to adopt AI at scale and compete for skilled labor |
| Governments exploring technological developments | Refining online surveys, introducing chatbot support, exploring safe and ethical AI applications | Enhanced user experience, increased efficiency, and improved data analysis | Improving citizen experience and making operations more efficient |