Unlocking government's technology future

Governments and public sector organizations are making good progress on their digital transformation journeys. Now they need to pick up the pace and start delivering the value that citizens expect. This report explains how to make that happen. 

Based on a recent survey of senior public sector technology leaders across 20 countries, public sector organizations are building — and maintaining — change momentum, particularly in key capabilities such as cloud enablement, cyber security and data and analytics.

The data shows they are experimenting with AI and emerging technologies. They are linking tech investments to customer expectations and demands. They are more likely than their private sector peers to say they are confident in their ability to keep up with the pace of change.

Yet senior leaders in government express concerns that their advancement is beginning to level off and they are actively seeking innovative solutions to take them to the next stage of their digital transformation.

The urgency to adopt AI has pushed the emerging technology up the agenda in government departments with 45 percent of respondents confirming they are experimenting with AI in controlled groups, and many expect to democratize their approach as they gain experience. Two-thirds of government technology leaders say they expect their government to invest in AI and automation within the next year.

Yet, the race to embrace AI also exposes various challenges in its adoption including the trust, transparency, and regulation of these new technologies, as well as the lack of skilled professionals to develop, deploy, and manage AI solutions.

Building public trust in AI is essential for its successful adoption and governments should be transparent about how it is used and ensure its decisions are fair and unbiased. Governments should also be the regulator of such technologies, yet the survey found that leaders in governments across the globe were only eight percentage points more likely to say they see themselves as risk guardians when it comes to AI, than the overall sample.

According to a separate study, Trust in Artificial Intelligence conducted by KPMG Australia last year, only 33 percent of global respondents report a high level of confidence in governments’ ability to develop and use AI in the best interest of the public, with trust ranking below that of big tech companies when it comes to developing and adopting AI.

According to the research, leaders are focusing on understanding how generative AI will impact productivity, where it will enable human capacity to be refocused onto more value-added tasks, and where it might influence service delivery. Already, more than two-thirds of the survey respondents say they are using AI to fill skill gaps (68 percent in public sector versus 73 percent overall respondents). However, further progress may be hampered (ironically) by a lack of AI skills.

But there are signs of a mindset shift when it comes to getting the workforce future ready. According to the Forrester Opportunity Snapshot commissioned by KPMG UK in February 2024, nearly three-quarters of government leaders say they are prioritizing the training of employees and executives in digital skills.

Many of our public sector organizations are truly adapting to this change fairly quickly. For the rest, while the steps are gradual it is reassuring to see that many of these organizations are considering technology to also address the growing challenge of talent attraction and retention in the marketplace. Leveraging technology to create efficiencies, that enable workforce to focus on more strategic and high-value priorities – is a priority for Government organizations across the board. Technology led transformation is not just an expectation, but a solution that drives both customer and employee engagement for our Government sector.

Governments and public sector organizations are making good progress on their digital transformation journeys. Now they need to pick up the pace and start delivering the value that citizens expect. The Unlocking government’s technology future report is based on data from the KPMG global tech report 2024 and explains how to make that happen. It includes the results of a survey of 118 senior government technology executives and decision-makers around the world. It shows that public sector organizations are building — and maintaining — change momentum, particularly in key capabilities such as cloud enablement, cyber security and data and analytics.

At KPMG, we are committed to helping healthcare systems and organizations to navigate the choppy seas of transformation. KPMG firms dedicated sector specialists are passionate about government sector and their desire to help organizations achieve outcomes, as efficiently and effectively as possible. Learn more or contact us today to discuss how we can help your organization in its transformation journey.