Algorithms at Work: a Revolution the Public Sector Cannot Ignore

Artificial intelligence (AI) is reshaping public administration across Europe, offering transformative potential to enhance efficiency, decision-making and citizen engagement. Recognizing its strategic importance, the EU has emphasized the need for trustworthy and sustainable AI integration. However, embedding AI solutions within government structures is not without challenges, requiring careful attention to technical complexities, organizational culture and public trust.

AI adoption in the public sector remains in its early stages, characterized by pilot projects and experimental initiatives. As governments transition toward broader implementation, it is crucial to ensure that AI technologies are not only effective but also aligned with organizational values and ethical standards. The EU's Coordinated Plan on AI (2021) underscores the importance of sustainable integration, urging Member States to establish robust frameworks for adoption.

A recent study, conducted by the Joint Research Centre (JRC, 2024) across seven European countries (France, Germany, Spain, Netherlands, Poland, Austria and Sweden), investigated AI readiness in public administrations. These countries, representing a mix of large and small EU Member States, provided diverse perspectives across geographic and administrative contexts. The study, involving 576 public managers, highlights key challenges and enablers of AI adoption through a multifaceted approach. 

The study reveals that AI is no longer a distant aspiration for public administrations. Over 63% of surveyed public managers reported having planned AI projects, while more than half had already implemented at least one initiative. However, adoption levels vary across domains, with service delivery and internal operations showing significant progress. Policy decision making lags, potentially due to the complexity of policymaking and concerns about data quality.

Six critical factors for successful AI adoption emerged from the research. First, public managers who recognize AI’s potential to improve efficiency, reduce workloads and enhance stakeholder relations are more likely to drive implementation. Second, building capacity in technical, legal, ethical and governance domains is essential for higher adoption rates. Third, clear and well-communicated strategies that align AI initiatives with organizational goals significantly boost implementation success. Fourth, cultures that embrace innovation, risk-taking, and reward novel solutions reduce resistance to AI adoption. Fifth, leadership that provides resources and incentives fosters organizational buy-in and accelerates adoption. Last, public expectations for efficient, AI-driven services create external drivers for adoption.

Interestingly, factors such as collaboration with private parties and national government incentives played a less significant role, challenging assumptions about the reliance on external stakeholders in driving public sector AI initiatives.

Public administrations face distinct challenges compared to the private sector, including legal constraints, accountability to citizens, and political pressures. While citizen demand is a key driver, explicit requests for AI-enabled services are rare, leaving public managers to interpret and anticipate public expectations. Furthermore, smaller organizations often face barriers such as limited resources, highlighting the need for tailored support mechanisms.

Drawing upon this study and related sources (e.g. the OECD’s Governing with Artificial Intelligence: Are Governments Ready? [2024] and the OECD’s [2024] G7 Toolkit for Artificial Intelligence in the Public Sector [2024]), several actionable recommendations emerge. The first is that governments must communicate that AI is not a distant concept but an operational reality in many public organizations today; second, sustained investment in technical and non-technical expertise, including ethics and governance, is critical for long-term success; third, leadership development programs should emphasize fostering innovative organizational cultures and strategic planning for AI adoption; and fourth, continuous evaluation of citizen expectations can help public managers align AI initiatives with public demand, ensuring relevance and trust.

As the EU strives to lead in trustworthy AI, the public sector plays a pivotal role in setting global standards for ethical and effective technology use. Moving from pilot projects to widespread adoption will require addressing the interplay of technological readiness, organizational dynamics and societal expectations. 

References 

OECD 2024 https://assets.innovazione.gov.it/1728922597-g7-toolkit-for-ai-in-the-public-sector.pdf

OECD 2024 GOVERNING WITH ARTIFICIAL INTELLIGENCE: ARE GOVERNMENTS READY? For Official Use 

European Commission: Joint Research Centre, MEDAGLIA, R., MIKALEF, P. and TANGI, L., Competences and governance practices for artificial intelligence in the public sector, Publications Office of the European Union, Luxembourg, 2024, https://data.europa.eu/doi/10.2760/7895569, JRC138702.