Intelligent government

Explore how industries are harnessing AI to thrive in the intelligent economy

Exploring how governments can deliver value to citizens with AI

The emergence of generative AI, alongside advanced autonomous and agentic systems, is transforming how government and the public sector innovate and operate. Our findings reveal an actionable blueprint for governments and organisations aiming to leverage AI's potential to drive efficiency, reduce time-to-market and improve patient outcomes. This report provides insights into how they can take a value-based approach to AI that helps to accelerate innovation, unlock new growth opportunities, and maximise the impact of their AI investments.

At-a-glance insights:

Government is in the early stages of AI but belief in the transformative potential of AI is high

have been using AI for less than two years

Only 16%

state that leaders fully trust AI, only 12 percent state that AI is integral to their organization. Plus only 18% have integrated AI into their 5-year plans

agree that organizations that embrace AI will have an advantage over those who do not

Operating models are proving to be a major inhibitor to widescale adoption, with systems and data management reflecting a siloed structure

56%

state that their operating model enables AI strategy alignment, but only 23% say their operating model enables this consistently

26%

have a predominantly cloud-based technical infrastructure, and 55% do not yet have a unified data warehouse of enterprise data management

Strategic barriers are holding the Government sector back, with internal resistance and privacy risks the leading challenges when integrating AI

How to realise value from your AI transformation journey

To address these challenges, KPMG introduces the three phases of AI value — a framework designed to guide technology companies through the AI adoption journey. This phased approach can unlock significant value through AI-driven transformation, driving smarter and more innovative governments. Click on each of the phases below to find out more.

Enable

The Enable phase focuses on enabling people and building AI foundations. Organisations appoint a responsible executive, create an AI strategy, identify high-value use cases, boost AI literacy, align with regulations and establish ethical guardrails. AI pilots are launched across functions, while cloud platforms and pre-trained models are leveraged with minimal customisation.

Embed

The Embed phase integrates AI into workflows, products, services, value streams, robotics, and wearables, delivering greater value. A senior leader drives enterprise-wide workforce redesign, re-skilling and change, embedding AI into operating models with a focus on ethics, trust and security. AI agents and diverse models are deployed, supported by cloud and legacy tech modernisation, while enterprise-wide data enhances operations.

Evolve

The Evolve phase evolves business models and ecosystems, using AI and frontier technologies like quantum computing and blockchain to solve large sector-wide challenges. AI orchestrates seamless value across enterprises and partners. Emphasising ethics and trust with real-time security, this phase uplifts human potential with broad and deep workforce training, fostering a creative, innovative and value-driven future.

Intelligent government

This research outlines a detailed blueprint for AI in government and public sector organisations, helping to chart a path towards unlocking AI’s immense value.

Download the report