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Why the public sector must respond to the AI revolution

By Simon Jones

November 29, 2023

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If 2023 is remembered for nothing else, it will be for how artificial intelligence (AI) has pervaded the public consciousness and industries alike to become a defining force in our lives. While innovative companies and fast-moving sectors have been quick to adopt AI solutions, the public sector without the competitive pressures faced by private companies, has remained tentative towards AI adoption.

The reality, however, is that digital transformation – and indeed AI-powered transformation – is now an expectation, rather than a nice-to-have. So decision-makers in the public sector must start reacting to how AI is impacting the communities they serve, while also leveraging its ability to boost operational efficiency to drive achievement of public value.

The multifaceted impact of artificial intelligence

No matter the industry, AI has incredible value as a general-purpose tool. Projections of global economic growth, estimated between US$11.0–17.7 trillion for non-generative AI and an additional US$2.6–4.4 trillion for generative AI, underscore AI’s transformative potential. Beyond the economic implications, AI will fundamentally reshape value streams for public-sector agencies, requiring a recalibration of operational strategies to align with societal needs and technological advancements.

AI’s current value resides in its ability to optimise processes, automate tasks, generate insights and more – all of which have far-reaching implications. Its influence is seeping into essentially every sector, from healthcare and finance to education and governance. AI-powered predictive analytics, for example, can transform healthcare by enhancing diagnostics, while for governance it can streamline administrative tasks and accelerate data-driven decision-making.

Complexity meets potential

The surge in AI capabilities has resulted in an inundation of information and vendor propositions. This influx, while reflective of the burgeoning potential, shows just how critical it is to take a measured approach. Making informed decisions becomes all-important in understanding opportunities and charting a course that aligns with your long-term vision. Agencies must carry out rigorous assessments to determine the most beneficial and ethical applications of AI, weighing up short-term gains against the sustainable impact on society.

But there remain roadblocks, not only in choosing the right technologies but in considering the ethics of AI. The technology’s influence over decision-making and process automation demands careful scrutiny. In the public sector especially, there must always be fairness, transparency and accountability. Striking the right balance between technological advancements and societal wellbeing will therefore require a collaborative effort that takes into account all stakeholders’ perspectives.

Crafting a strategic readiness framework

Adapting to the new AI norm demands a meticulous approach: one that blends top-down directives with bottom-up exploration. Legislative frameworks, policies and strategic mandates should serve as guideposts, outlining the contours for AI integration within agencies. At the same time, decision-makers must carefully assess and tailor AI tools and processes to fulfil their operational mandates.

This top-down, bottom-up approach must factor in things like data curation, quality assurance, access controls and more to lay the foundation for an overarching governance framework. This framework, anchored in continuous-improvement principles, can then serve as a compass for rolling out AI technologies responsibly.

But even with an expert amount of preparation, getting buy-in at all levels can be challenging. It requires a shift – not only in operational thinking but in organisational culture. The work environment must encourage experimentation and learning. Cultivating a culture of curiosity and innovation will be pivotal to the transformation’s success or failure.

Fostering collaborative transformation

For members of the executive-leadership team, AI adoption goes beyond technological prowess and instead requires an acute appreciation of its societal implications. Taking advantage of AI’s potential should be about enhancing policy, regulatory and service delivery effectiveness while remaining aligned with the core tenets of public service.

Public sector leaders play a key role in driving the ethical and strategic use of AI. They are entrusted with safeguarding the public’s interests while ensuring AI applications align with ethical guidelines and legislative frameworks.

It’s time to embrace the here and now

The imperative is clear: embrace the transformative power of AI while upholding ethical principles and public-service values. It’s about harnessing innovation to create a future where technology aligns with the wellbeing of our communities. Rolling out an AI discovery program is a crucial step in this transformation, laying the foundation for future success.

Terrace Services have developed models and frameworks that will pave the way for a future optimised by AI. Providing comprehensive management advisory solutions specifically tailored to the public sector. Their support includes strategic AI-readiness assessments, ethical AI frameworks, and operational model designs, empowering public sector organisations to harness the power of AI responsibly and effectively.

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