The future of public services: unlocking AI to enhance efficiency and build public confidence

AI’s development and uptake is advancing at a breathtaking pace that makes past technology revolutions, including internet and smartphone adoption, appear slow and meek by comparison. The potential for rebooting the public sector may be huge, but governments urgently need to address an array of issues to fully unlock it and bridge the gap between citizens’ expectations and public sector performance. The EY European AI Barometer [The AI revolution - EY European AI Barometer 2024] pinpoints critical gaps in multiple dimensions that governments need to close to fully harness the power of AI. With the right approach, AI can make the delivery of public services to citizens more efficient, attract scarce talent to the public sector and foster a more connected society.

An opportunity for enhanced policy implementation and better public services

AI offers transformative potential for enhancing policy implementation, particularly in view of the growing need for timely and more effective responses to complex challenges, from climate change and economic inequality to public health crises. AI-driven systems can analyze vast data sets to identify patterns, synthesize implications and inform decision-making. Backed by reliable data sets and AI-generated insights, government agencies can more accurately predict socioeconomic trends and more effectively respond to unexpected shocks, ensuring that policies remain relevant and adaptable to rapidly changing domestic and global conditions.

In interactions with citizens, AI-powered assistance can significantly enhance service quality and boost public confidence in government institutions by automating transactional processes and streamlining workflows. For example, AI-driven chatbots can help citizens navigate complex administrative processes, providing instant, accurate information in a multitude of languages - hence reducing the need for human intervention in routine tasks. In turn, public sector workers could be freed up to focus on more complex issues and human interactions, leveraging their unique skills.

For example, consider a new parent who needs to quickly get their bearings in the complex landscape of benefits they are entitled to. Instead of waiting in long queues or dealing with complex application forms, an AI-powered system can guide them through the entire process online, clarifying any questions and ensuring all necessary documents are submitted correctly. This not only saves time but also enhances citizens’ overall user experiences. (Watch the use case video here:?How can AI enhance public services while building public confidence?)

Despite the vast potential, the EY European AI Barometer [The AI revolution - EY European AI Barometer 2024] indicates that the public sector has yet to fully capitalize on AI. Currently, AI use is mostly limited to text creation (58%) and voice assistants (41%). In contrast, applications for optimizing financial processes (6%) or human resources (4%) remain underutilized. This untapped potential suggests that much more can be done to integrate AI into various aspects of public service delivery and support processes, especially in view of growing calls to rein in budgets and the imperative to better utilize scarce talent.

Strengthening the public sector workforce by building AI capabilities

The future impact of AI on the public sector workforce cannot be overstated. However, to fully leverage AI’s potential and mitigate any downside, significant investment is needed in digitalization and innovation, particularly in improving the digital literacy of public sector employees. The EU’s Recovery and Resilience Facility (RRF) [Recovery and Resilience Facility - European Commission] emphasizes the importance of appropriate investment in driving effective public administration. With €648 billion in funds, the RRF supports investments to create sustainable, resilient and digitally prepared economies. European governments should seize the opportunity to upskill their public workforces accordingly.

Targeted training programs are vital for equipping public sector employees with the skills they need to work with AI-driven tools. That said, the public sector lags behind other industries in this regard. EY data shows that only 19% of managers in the public sector believe their employees have received adequate AI training. To put this into perspective, 69% of managers in advanced manufacturing and 65% in financial services are satisfied with the current AI training of their teams.

This gap underscores the need for targeted efforts to modernize the public workforce and attract new talent, especially in areas such as digital technologies, green economy and administrative innovation. Moreover, public employment frameworks must be reformed to be more flexible and merit-based to reflect the changing nature of work in the AI era.

Three urgently needed actions

Backed by AI, governments can deliver services that are smarter, faster and more personalized to their citizens. Governments need to act now in three core domains to reboot public services for the AI future:

1.?????? Set a clear AI ambition????????????

For the public sector to successfully integrate AI, organizations must first define their AI ambition [How the public sector can prepare for AI in the workforce | EY - US]. This involves understanding AI’s impact on the workforce, focusing on career development, and making strategic investments in technology and education of the workforce. Leadership is critical in this transformation, along with clear policies and guidance on AI usage.

2.?????? Drive change

With its sights set on a clear future vision, the public sector needs to embrace AI and set a consistent tone from the top with shrewd strategic investments and a commitment to training and personal development within the public sector. A carefully designed change management program is key to get staff on board, while driving citizen satisfaction and fostering public confidence in government.

3.?????? Design regulation that fosters sustainable innovation

Effective AI implementation critically depends on smart regulation that supports sustainable growth by fostering beneficial innovation and addressing legitimate concerns, among them the risk of bias and discrimination, privacy rights, fraud and the loss of agency.

Public services are on the cusp of major change. The choices governments make today will make the difference between struggling to meet rapidly evolving citizen demands in a new global economic order or truly revolutionizing the way governments serve their citizens.

The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.

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