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How artificial intelligence can streamline the public sector – and why the time to act is now 

6/25/25 1:49 PM Imran Rafique, Senior Principal Manager

Artificial intelligence (AI) is rapidly emerging as one of today’s most widespread and transformative technologies — and with good reason. AI has already driven major changes in the private sector, and now it’s time for the public sector to fully embrace its potential. As a Business Manager at twoday, I see enormous opportunities for AI to improve efficiency and service delivery in the public sector. But we also need to be clear-eyed about the challenges. Let’s explore what’s at stake.

 

A cautious approach to AI in the public sector 

Public institutions have traditionally taken a cautious approach to adopting new technologies — a stance that’s understandable given their societal responsibilities. 

Although there is strong interest in AI and a shared understanding of its game-changing potential, I still see AI being used sporadically across the public sector — often as individual tools like ChatGPT used by employees for daily tasks. While caution is warranted, I believe public institutions risk missing out on massive potential if they don’t develop a clear strategy that integrates AI into their core solutions — not just as isolated tools. 

To maintain momentum and a strong, effective public sector, we need to establish clear guidelines and ensure employees receive the training necessary to use AI effectively and responsibly. This will also make the use of AI safer and more consistent compared to today’s ad hoc adoption. 

  

What can AI do for the public sector? 

AI has the potential to transform numerous areas in the public sector — and one of the most promising is case management. 

Consider the vast amounts of documentation involved in building permits, appeals, and social benefits. Instead of spending countless hours on routine processing, AI can analyze data, compare similar past cases, and generate draft decisions far more quickly and consistently. Human caseworkers can then step in to refine and validate the AI's suggestions. 

A powerful example lies in the healthcare sector. AI can help analyze patient records, identify patterns, and support more accurate diagnoses. That’s not just a win for patients - it also frees up time for healthcare professionals to focus on high-value, person-centered care. 

  

Major challenges 

Like any new technology, AI presents challenges that must be addressed before it can fully integrated into the public sector. 

First, there are legal and ethical considerations. How can data be used responsibly? How do we ensure the protection of citizens’ personal information? 

Many public institutions are hesitant, afraid of making missteps. In my experience, much of this fear can be reduced with deeper understanding of how AI systems can be designed and implemented safely. 

There’s also concern about what AI means for employees’ day-to-day work. That’s why open dialogue is essential — to help people see AI as a tool that can reduce workload pressure, rather than a threat to their jobs. 

Infrastructure also plays a crucial role. Many legacy public systems aren’t built to support AI. To realize AI’s full potential, investments in modern, cloud-based platforms are needed. If your organization is in that situation, now is the time to start a modernization program. 

  

What happens if we don’t act

The consequences of ignoring AI could be significant. With an aging population and growing demand for public services, it will become increasingly difficult — and expensive - to maintain current service levels. 

To keep up with societal developments, the public sector must embrace today’s technologies. If we don’t, we risk declining service quality, overburdened employees, and an unattractive work environment. 

Rather than seeing AI as a threat, we should view it as a solution. It can streamline workflows, improve service quality, and unlock long-term cost savings. 

I see AI delivering real results every day. For example, we recently used AI to generate standard code in a project. What would normally take a consultant two months was completed in just four days. That’s a clear win — one of many. 

The public sector can’t afford to sit this one out. 

  

My recommendation 

To get started with AI in the public sector, I recommend the following: 

  • Start small: Identify areas within your core operations where AI can create value with minimal risk. 
  • Ensure compliance: Conduct risk assessments and choose technologies that meet European data protection standards. 
  • Develop a clear strategy: Create a playbook with guidelines and best practices to ensure responsible, secure use of AI across your organization. 
  • Engage your employees: Training and dialogue are key to building confidence and buy-in. 

  

AI is not the future - it’s the present. The sooner we act, the more value we can unlock. As public institutions, we have a responsibility to provide efficient, high-quality services to our citizens.

Today, AI is one of the most important tools we must fulfill that responsibility. 

 

 

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