Summary

The rapid adoption of artificial intelligence (AI) technologies is reshaping all areas of public life. A new KPMG report examines the opportunities and long-term prospects for integrating AI into government institutions to improve citizen-oriented public services. According to the authors, survey data show that 79% of public-sector leaders believe AI will give their organizations a strategic advantage, yet only 12% report that AI technologies have already been integrated into their operations. Most initiatives remain at the pilot stage: nearly two-thirds of public organizations have used AI for less than two years. AI adoption is most advanced in healthcare (disease diagnostics and data structuring), infrastructure maintenance, and citizen-facing government service centres. Key obstacles to broader deployment include outdated legacy systems, fragmented data, lack of trust in AI among staff, and limited AI model capabilities that hinder scaling. The report underscores the need to shift from experimental adoption to building sustainable AI ecosystems in the public sector, with a focus on trust, ethics, infrastructure and the transformation of institutional operating models.