Smart Governance: Artificial Intelligence in Public Administration

AI is commonly defined as the ability of a machine to perform cognitive functions associated with humans, such as perceiving, reasoning, learning, interacting with the environment, solving problems, and even engaging in creative activities. 

Essentially, AI addresses tasks and challenges that require deep expertise and knowledge, being too complex to be manually programmed in a short period. Thanks to artificial intelligence, processes that previously required a high cost in time and/or resources can now be accomplished with a fraction of that time and/or effort.

Using artificial intelligence in public administration is not only an innovative trend but also a smart strategy for several reasons. 

Firstly, it improves operational efficiency by automating routine and administrative processes, freeing public officials to focus on higher-value strategic tasks. 

Additionally, AI facilitates informed decision-making through the analysis of large volumes of data, which can significantly enhance the quality of services offered to citizens.

Another crucial aspect is AI's ability to personalize public services according to the individual needs of citizens, thereby improving their experience and satisfaction. 

For example, AI can optimize resource management and predict demand in essential services such as healthcare and education, ensuring a more equitable and efficient distribution.

This integration of artificial intelligence in public administration not only modernizes governmental processes but also promotes a more efficient, secure, and citizen-centered environment.

Artificial Intelligence Today

In the context of smart governance, artificial intelligence has transformed from a theoretical promise to a practical and essential tool. This evolution has been made possible by two key factors that have converged to make AI a tangible and powerful reality.

Algorithmic Advances and Data

The first of these factors is the remarkable progress in algorithms and the proliferation of data. Advances in machine learning algorithms and data processing have enabled machines to perform increasingly complex tasks with unprecedented precision and efficiency. 

Additionally, the amount of available data has grown exponentially, providing the necessary fuel for AI systems to continuously learn and improve. Combined with significant increases in computing power and cloud storage, this environment has propelled AI from being a trendy topic to an operational reality.

For smart governments, these advances mean the ability to analyze large volumes of information quickly and accurately, enabling data-driven decision-making and more efficient management of public resources.

Market Predictions

Secondly, market projections for artificial intelligence underscore the magnitude of its impact and its future potential. The global AI market is expected to reach $621 billion by the end of 2024, according to Fortune Business Insights. This figure reflects the growing adoption and investment in AI technologies across various sectors, including public administration.

According to Forbes, AI will become a $15.7 trillion industry by 2030, with investments exceeding $500 billion by 2024. 

This growth demonstrates the confidence that AI will continue transforming industries and improving operational efficiency. For smart governance, this represents a significant opportunity to enhance services and operations by adopting AI solutions and taking the initiative.

The International Monetary Fund (IMF) predicted at the end of 2023 that AI could increase global GDP by 7% (nearly $7 trillion) and boost productivity growth by 1.5 percentage points. 

This increase in productivity is especially relevant for governments, as it allows them to offer more and better services to citizens with the same or even fewer resources. AI's ability to automate routine tasks and analyze complex data improves efficiency and frees up employees to focus on higher-value activities.

The integration of artificial intelligence in smart governance not only modernizes and optimizes government operations but also has the potential to transform public administration globally. Advances in algorithms, data, and technology, along with market growth predictions, demonstrate that AI is a tool that can be crucial for the governments of the future.

Trends in AI Use in Public Administration

Smart Governance is not a future promise, but a reality already being considered. Despite limitations and not yet reaching its full potential, various trends in the use of artificial intelligence in public administration are beginning to be applied worldwide. Here are some of its most notable uses:

• Automation of Government Operations: AI will help rethink processes and systems to improve the delivery of value to citizens. More than half of the AI solutions currently used by governments focus on incremental changes rather than transformative ones. In this sense, predictive analysis and data-driven decision support have great potential in areas such as demand forecasting, early warning detection, and public policy analysis.

• Sustainability and Green Development: Governments are adjusting their internal operations, promoting the development of green sector products and services, and improving the sustainability of public fleets, buildings, travel practices, and their supply chain.

• Modernization of Digital Infrastructure: Government officials need a multifaceted understanding of the potential of digital, data, and technology to transform the way government works and better meet citizens' needs.

• Public Servant Experience: Government efforts will focus on initiatives such as cloud migration, application modernization, and strengthening network security. Among surveyed government officials, 49% chose AI/ML as the most important technology when selecting cloud services.

• Cybersecurity and Digital Sovereignty: The increasing risk of cyberattacks is driving governments to legislate cybersecurity frameworks. Focus areas include supply chain protection, data control and security, and infrastructure modernization.

• Enhancing Citizen Experience: Government organizations are working to improve their ability to deliver services to citizens with the help of AI analytics, automation, and data integration.

• Smart Infrastructure Management: Especially in relation to predictive maintenance and smart mobility management, AI can assist public administrations in managing complex infrastructures and transportation systems, preventing and avoiding high-impact errors.

Challenges in Implementing AI in Public Administration

When implementing artificial intelligence in public administration, smart governance must address various challenges. The most important ones are related to:

• Restructuring and Development of New Functions: Public administrations need to train their personnel and leaders in AI management and understanding, as well as in generating data-driven questions.

• Empowering and Promoting a Positive Vision of AI: Fostering a positive and constructive vision of AI among public servants is crucial for the proper adoption of the technology, avoiding resistance, both for the public employee and the citizen.

• Increasing Benefits: Establishing clear objectives and goals that maximize the technology's performance by aligning it with the demands of their activities is another crucial point.

• Effective Implementation and Investment: It is essential to highlight the need for investment in AI within public administrations to stay current. This is an investment that must be sustained over time, adapting to new possibilities.

• Results Analysis: Processes are also required to avoid unreliable, biased, or incomplete results. Performance analysis of policies will justify the government’s investment in AI.

• Privacy and Data Security: AI systems require large volumes of personal and sensitive data to function correctly. Ensuring the protection of this data against unauthorized access, security breaches, and cyberattacks is crucial.

• Data Availability and Quality: For AI systems to be effective, it is essential to have high-quality and easily accessible data. However, public administrations often only have fragmented data, lack of standards, and the existence of incomplete or outdated data.

• Risk Management: Managing potential discrimination and bias in algorithms is another risk to consider, to avoid unfair or unequal decisions. The same can occur with risks related to technology dependence and the lack of human oversight.

Regulation of AI in the European Union

The use of artificial intelligence is also determined by the risks associated with its use. To mitigate potential dangers, the European Union's AI Act distinguishes between different applications, either prohibiting them or proposing the use of special permits and labels. We can talk about four major groups of AI applications for the EU:

• Prohibited Applications: Those that violate human rights, democracy, or human dignity, such as subliminal manipulation or remote biometric recognition for mass surveillance.

• High-Risk Applications: Those that can significantly impact people's lives, health, safety, or fundamental rights, such as medical devices, transportation systems, education, employment, or justice.

• Applications Subject to Transparency: Applications that generate or manipulate content artificially must inform users that they are interacting with an AI system and not a real person.

• Low-Risk Applications: Those that do not fall into any of the previous categories and do not pose significant risks to individuals or society, such as photo filters, video games, or product recommendations.

Governments of the European Union will need to legislate in their national territories in accordance with this law, which will undoubtedly affect the AI solutions they can adopt as an Administration.

Predictions About Artificial Intelligence in Public Administration

Beyond these challenges, we can anticipate some predictions about the future relationship between artificial intelligence and public administration:

• Increase in AI Spending: By 2026, governments will increase spending on data exchange, AI, IoT, and computing capacity by 15% to scale global collaborations and mitigate extreme weather events caused by climate change.

• EU AI Policy: By 2028, considering the EU policy on AI, 60% of governments will adopt a risk management approach in their AI and Generative AI policy-making.

• Generative AI in Decision-Making: By 2027, 50% of governments will extend generative AI from task automation to decision support.

• Cyberattacks: By 2027, 95% of nations will experience major cyberattacks caused by actors using generative AI, but only 30% will be resilient enough to prevent significant disruptions and breaches.

• Reducing Digital Gaps: By 2026, 60% of governments will close digital gaps by automating and connecting data, processes, and employees, and implementing AI-enabled platforms for end-to-end smart operations.

What VASS solutions can help with smart government? 

At VASS, we offer various solutions to integrate artificial intelligence into public administrations.

First, the VASS AI Academy and its strategic consulting service enable the identification of effective solutions to address any challenge faced by a public administration. As well as the development, implementation and governance of an AI strategy in line with corporate strategy, and compliant with a regulatory, safe and ethical framework for the use and development of AI solutions. 

Second, pre-designed AI packages are also a good option. These packages allow for working with a variety of data sources, performing advanced analyses to optimize real-time data access, and facilitating strategic decision-making.

Additionally, adoption catalysts are a highly demanded option. They help reduce the time and effort dedicated to AI adoption, increasing the speed of problem resolution.

Through vertical and transversal packages, it is possible to work on public service demand forecasting, data mining tools, intelligent document processing, legal identification, and unstructured data, as well as other tools for email labeling and classification or conversational staff onboarding.

Lastly, we emphasize our commitment to personalized AI solutions, which address the specific challenges of administrations using the latest technology.

Thanks to VASS, the adoption of smart government with the incorporation of artificial intelligence is easier than ever, implementing effective solutions for public administrations, improving their efficiency and citizen satisfaction.

How can we help? 

Here are some key cases for our clients:

• Incident resolution and automated decision-making: AI technologies help interpret events and automate decisions, which can significantly reduce response times and improve the accuracy of support services.

• Personalized customer service: By analyzing customer interactions, intelligent support systems can offer personalized assistance, making the customer experience more satisfying.

• Scalability: AI-driven assistance can handle a large volume of queries simultaneously, allowing companies to scale their customer service operations without overwhelming human agents.

• Proactive service: With the ability to analyze data in real time, intelligent support can provide proactive service by anticipating customer needs and addressing issues before they escalate. Essentially, intelligent support systems are designed to optimize business functions, increase employee productivity, and ultimately drive business value by providing smarter, more efficient customer service.

• Automatic document processing: Using techniques such as optical character recognition (OCR) and natural language processing (NLP), public administrations can automate the management of large volumes of documents, improving efficiency and reducing human errors.

• Drafting of administrative resolutions: AI helps draft and formulate proposals for various administrative procedures. By using machine learning algorithms, previous cases and current regulations can be analyzed to generate proposals.

• Fraud detection: By analyzing patterns and identifying anomalies in large datasets, AI can detect suspicious activities and potential fraud in real-time.

• Automation of repetitive tasks: Tasks such as file management, database updates, and request processing can be automated.

• Virtual assistants: These assistants or chatbots can help resolve inquiries around the clock, track procedures, and schedule appointments, improving accessibility and efficiency in public service.

• Predictive analysis: AI can analyze trends and future needs based on historical data. Predictive analysis allows public administrations to be proactive rather than reactive, improving management and service to the community in areas such as resource management or urban planning.