With many countries’ public finances under severe pressure, the need for innovation is becoming increasingly evident. At the same time, the promise of AI’s “ world- changing” capabilities has also raised public expectations – despite public reticence after decades of similar claims from previous technological revolutions.

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AI - expectations in public administration reform. Photo: Midjourney

In fact, despite decades of heavy investment in technology, few reforms have truly changed the way governments organize or deliver services. Nearly 15 years ago, a series of large-scale digital transformation projects in Europe modernized logistics processes through ERP systems, but they consumed huge resources without bringing about a breakthrough change in the citizen experience.

The main reasons come from political pressure, risk aversion and the complexity of public processes, which have stalled many long-term innovation plans. The question is: does the public sector have the capacity, culture and public trust to truly make a breakthrough with AI this time?

To answer this, Oxford Economics, in collaboration with EY, conducted 46 in-depth interviews with public sector leaders, experts and private sector partners in the field of digital transformation, and a survey of 492 civil servants in 14 countries. The results provide a relatively optimistic picture, with many new factors showing that AI can create real change this time - for the following 5 reasons.

1. AI expands the scope of transformation like never before

Where previous technologies have mostly improved piecemeal, behind-the-scenes work, AI has the potential to radically transform the way public service delivery agencies operate. The study documents more than 200 practical applications, from detecting tax fraud, analyzing crime trends, to automatically extracting information from complex legal documents.

Unlike previous digital tools, AI not only optimizes performance but also opens up the ability to predict and make smart decisions, helping administrative reform activities shift from "reactive" to "proactive".

2. Testing model suitable for the characteristics of the public sector

Unlike IT projects that can take years and are fraught with risk, AI projects typically scale only after they have proven their effectiveness. This is especially true in the public sector, where small teams can experiment, measure, and adjust quickly without having to jump through complex administrative hoops. This approach reduces the cost of experimentation, shortens implementation times, and encourages agile innovation across government.

3. Public sector IT deployment capacity is improving

Compared to before, government agencies are now much more confident in implementing new technology.
Survey results show that 45% of public employees believe the public sector is ahead of the private sector in applying generative AI, while only 25% think they are lagging behind.

This success reflects lessons learned from past failures, the development of modern digital infrastructure, a culture of open collaboration with businesses, and the sharing of international experience through initiatives such as the European AI Alliance. These factors put government AI projects on a stronger footing than ever before.

4. Opportunities to attract and develop AI human resources

While the public sector cannot compete on salary, it has the advantage of social significance and stability, which attracts many young AI professionals who want to develop their expertise in connection with a community mission.
The AI ​​talent market is still taking shape, and governments can take advantage of this opportunity to become “practical schools” for the first generation of AI professionals.

Many public sector leaders also said they are investing heavily in AI skills and ethics training, aiming to build a civil service workforce with high digital capabilities and innovative thinking.

5. The real ambition for transformation has taken shape

In contrast to the reticence of the past, many leaders now demonstrate a more radical mindset: not only wanting to “work more efficiently” but also to redefine how public services are delivered. The city of Amarillo, Texas, is experimenting with “digital characters” that interact with citizens in public services. In France, DINUM coordinates a network of govtech startups through the Beta.gouv.fr program, creating an innovative startup environment in the public sector.

These examples show that transformational ambitions go beyond automation – towards redesigning the entire citizen experience.

Large-scale transformation efforts rarely go smoothly, but the combination of technological advances, new organizational cultures and leadership aspirations suggests that AI could bring about real change this time around.

If deployed responsibly, AI can not only help governments save costs and improve efficiency, but also reshape the relationship between the state and citizens – from passive service to proactive companionship in solving social problems.

(Source: Oxford Economics)

Source: https://vietnamnet.vn/ai-buoc-vao-trung-tam-cai-cach-hanh-chinh-nhung-doi-thay-an-tuong-2461521.html