Government leaders want to adopt artificial intelligence technology, according to a report Wednesday from EY, but there are several barriers to public-sector implementation, including privacy concerns and questions about the return on investment.

In the public sector, AI has a wide range of applications and the technology is rapidly evolving, but AI readiness in the public sector relies on a strong foundation, and experts argue that involves both data management and policy.

The survey of nearly 500 senior government executives revealed that 64 percent of respondents see the potential for cost savings from AI adoption, and 63 percent see its value in enhancing service delivery. Yet only 26 percent have integrated AI across their organization. The report aims to serve government officials with actionable insight and use case examples.


Most surveyed government officials — 58 percent of respondents — are hoping to speed the pace of data and AI adoption in the public sector.

However, there are specific barriers to adoption, as outlined in the report, with 62 percent of respondents citing data privacy and security concerns as high hurdles to AI adoption. Other key obstacles include the lack of a data and digital transformation strategy, inadequate data infrastructure or skilling, concerns about ethics, unclear ROI, and lack of funding.

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Those who have not yet adopted AI technologies can learn from the organizations that have been early implementers, dubbed “pioneers” in the report. Of those respondents, 88 percent of pioneers versus 58 percent of “followers” have deployed data and digital infrastructure; and 33 percent of pioneers have deployed AI technology, compared to 24 percent of followers. Those who have not adopted AI can look to pioneers for a successful framework.“Governments that fail to act decisively risk falling behind technologically and compromising their fundamental ability to fulfill their missions in service of citizens,” Catherine Friday, EY Global and EY Asia-Pacific government and infrastructure industry leader said in a statement, arguing that those who have already implemented these technologies are realizing benefits such as increased productivity.

The report indicated several key trends among pioneers, including that they prioritize talent development and they address ethical considerations such as issues of bias and privacy. They also engage with residents, partner with external organizations and value public trust.

Public trust is key to successful AI implementation, but the report highlights separate survey findings that indicate only 39 percent of respondents trust governments to manage AI.

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Among residents, key concerns include AI-generated misinformation, lack of human oversight, the use of personal data to train AI without consent, impact on vulnerable individuals, and a lack of accountability.

The report recommends government organizations prepare for AI adoption barriers like privacy concerns and data infrastructure, and prioritize trust among members of the public and employees. Lessons learned from successful adopters of the tech can also inform implementations.

To get started, government should make a strategic commitment, build the foundation and develop an action plan, according to the report.

It highlights five foundational pieces to support successful AI implementation: 1) data and technology, 2) talent and skills, 3) adaptive culture, 4) trust and ethical governance, and 5) collaborative ecosystem. The report argues that establishing this foundation will help organizations effectively adopt AI.

The document also suggests that organizations start with high-value use cases for AI, with a clear ROI and human impact.

It offers an array of examples showing how AI can impact organizations and the work they do. For example, the city of Amarillo, Texas, has developed AI solutions with the community, to engage the public and increase trust. This led to the launch of an AI-powered assistant called Emma. These types of tools play an important —and arguably essential — role for government.

“The stakes are high,” Friday said.



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