Public sector AI: Shifting from ambition to readiness

Across Europe, governments are moving quickly to harness the potential of artificial intelligence (AI). National strategies are being announced, innovation hubs funded and pilot programs launched. From healthcare to taxation, I have seen how AI is emerging as a powerful lever to enhance public services and safeguard digital resilience.

Europe’s population is aging and economic pressure is being felt across the continent. At the same time, citizens expect faster, simpler services. In this context, departments are looking for targeted AI uses that reduce manual workload and improve service quality without adding risk or cost.

In order for AI to add value to an organization, it needs up‑to‑date data, clear ownership and simple routes to information sharing across teams.

However, progress is uneven. Many organizations are still at the trial stage. Capgemini research shows that nearly 90 percent plan to explore, pilot or implement agentic AI within the next two to three years, while EU institutions and member states are committing billions to digital transformation centered around AI. Only 21 percent of public sector organizations have advanced beyond experimentation to pilots or actual deployment of generative AI.

The practical blocker is not enthusiasm: it is whether data is accurate, shared when needed and safe to use.

A reality check for AI maturity

In order for AI to add value to an organization, it needs up‑to‑date data, clear ownership and simple routes to information sharing across teams. Less than one in four organizations globally report high maturity in these fields.

For civil servants, this often translates into small teams juggling operational delivery with transformation agendas, learning new tools on the job and managing risk without clear playbooks.

More than half of public sector organizations are concerned about AI sovereignty, which is becoming central to safeguarding digital resilience.

This gap matters. AI initiatives built on fragile data foundations may face risks such as inefficiency, bias and security vulnerabilities, which can erode trust in automated decisions, both internally and with citizens. Strengthening public sector data is therefore not only key to enabling AI, but also essential for improving the accuracy, efficiency and reliability of government decision-making.

Getting the basics right also helps deliver ‘once‑only’ service patterns so citizens no longer need to repeatedly provide the same information to different authorities. By creating greater interoperability and portability, governments can reduce lock-in and strengthen long-term resilience.

The readiness gap

Europe is not lacking in ambition. Progress is underway, but common challenges remain; data silos between agencies, varying quality standards, unclear governance for data sharing and legacy systems that limit interoperability. Cultural hesitancy toward data-driven decision-making adds complexity, but it is not insurmountable.

The good news is that these issues can be addressed with a strategic focus on data foundations and practical steps that reflect how government works: small, safe changes; clear owners; and visible benefits to users and staff. When data is accessible, trusted, and well managed, civil servants can share information confidently, driving innovation while maintaining compliance and security.

Setting clear targets, aligning strategy with operational reality, and encouraging collaboration and shared behaviors across teams helps embed data use into everyday work rather than treating it as an added burden.

Through engagement with industry and public-sector stakeholders, I see growing momentum around these priorities and an opportunity for Europe to lead the way in scaling AI responsibly to deliver smarter, more efficient public services for citizens.

Building the foundations of public sector AI

Governments cannot buy their way into AI readiness, but can work to build it through sustained investment in four interconnected pillars.

First, data sharing. Solving complex public sector challenges with AI depends on information flowing safely across organizational boundaries. In practice, this means making it easier for departments and agencies to reuse data that already exists. While most public sector organizations have initiatives underway, only 35 percent have rolled out or fully deployed data-sharing methods.

Second, data control and sovereignty. Concerns about compliance and control are a daily reality for public sector leaders, and they are slowing AI adoption. More than half of public sector organizations are concerned about AI sovereignty, which is becoming central to safeguarding digital resilience. Compliance with data-localization laws and control over sensitive information become more complex when AI services are hosted in foreign jurisdictions. A 2024 European Commission report found that 80 percent of Europe’s digital technologies and infrastructure are imported.

Third, a data-driven culture. This is a critical pillar of AI readiness. Setting clear targets, aligning strategy with operational reality, and encouraging collaboration and shared behaviors across teams helps embed data use into everyday work rather than treating it as an added burden.

Fourth, data infrastructure. Robust, cloud-based data infrastructure is essential for storing, processing and analyzing data at scale, while respecting sovereignty requirements. Today, the lack of such infrastructure is the primary obstacle to effective data use. Only 41 percent of public sector executives say they can access data at the speed required for decision-making. Budget constraints are a real barrier, but they need not be paralyzing. By focusing on gradual, outcome-driven improvements rather than costly overhauls, organizations can demonstrate value and realize business outcomes.

Public sector organizations such as the City of Tampere illustrate this four-pillar approach. By building data foundations gradually and strategically, while addressing data sharing, sovereignty, culture and infrastructure together, Tampere has shown how thoughtful investment can deliver tangible results without losing sight of long-term ambition.

Achieving digital maturity

AI can transform the public sector, but only if data readiness becomes the true measure of digital maturity.

With sustained focus on governance, interoperability, culture, and infrastructure, governments can start to turn ambition into impact and deliver smarter, more trusted public services for every citizen.