Artificial intelligence (AI) technologies, including generative AI (GenAI), are being embraced to drive transformation in public sector governance and service delivery. Governments across the world are increasingly leveraging AI to improve citizen engagement and deliver outcomes more effectively and efficiently for security, healthcare, education, public services and more. As governments embrace AI, the need for efficient and effective implementation becomes crucial for ensuring public benefit and societal advancement.

This article explores the top AI applications that are currently shaping public sector innovation, focusing on their widespread use and how they contribute to the improvement of public services. It will also examine the current stage of AI adoption globally and within individual US states, identifying leaders in AI integration and areas for further development.

Citizen engagement: Improving services with AI-powered chatbots

AI can significantly improve the way governments interact with citizens, offering intelligent chatbots and virtual assistants to answer queries, resolve issues and provide timely updates. Countries like Estonia, for example, are recognized for innovative digital government services, which have been using AI to enhance citizen interaction for years.

Citizens often face challenges in accessing accurate information and AI or GenAI-powered chatbots can automate responses to frequently asked questions and bring together scattered information from disparate silos, improving customer service and reducing wait times. This not only increases citizen satisfaction but also allows government agencies to operate more efficiently.

The 2024 NASTD Artificial Intelligence in State Government IT Operations survey of 50 state central IT authorities indicates that 50% of states are using chatbots in public services, highlighting their role in enhancing citizen engagement. These AI-powered tools are helping citizens interact with government services more seamlessly, whether it's answering questions about public health, transportation or legal services.

As AI continues to mature, it will play an increasingly important role in shaping the future of citizen services, making services more accessible and responsive. Solutions like HCLTech’s GenAI-powered Citizen Advisor, which acts as a comprehensive advisor providing precise and actionable responses by cross-referencing multiple knowledge sources, can help governments achieve this faster.

The rise of AI in security: Enhancing cybersecurity and protecting data

Cybersecurity is the top use case of AI for internal state functions, according to the NASTD survey. AI’s ability to process vast amounts of data at scale allows it to detect anomalies, predict threats and enhance data encryption to safeguard sensitive information. This is especially vital as cyberattacks against government departments and agencies are becoming increasingly sophisticated and frequent. AI helps governments and other sectors to proactively identify vulnerabilities, improve system security and ensure the integrity of public-sector data.

AI-driven encryption methods and threat detection are being applied across the public sector ecosystem, including grants processing, tax collection and payment authentication, where protecting personal information and securing wealth is paramount.

Healthcare innovation: AI in public health and preventive care

Healthcare is another area where AI is making a profound impact, enabling governments to improve citizen access to health services. By using AI to analyze health data, governments can predict disease outbreaks, enhance patient care and target healthcare resources to specific communities. The ability to provide timely, preventive care has been especially critical in the wake of the COVID-19 pandemic.

In the US, 32% of states surveyed are already using AI for healthcare-related services, including managing patient records, improving diagnostics and accelerating drug discovery with fewer resources. AI enables predictive healthcare models that help public health agencies allocate resources more effectively and target interventions before outbreaks spread. Countries like Finland and Estonia have also taken significant steps toward AI-driven healthcare, utilizing these technologies for everything from remote patient monitoring to personalized treatment plans.

By making health data more accessible and actionable, AI is contributing to a future where public health systems can respond faster and more effectively to emerging challenges, benefiting both the government and the public.

Ultimately, AI in healthcare can significantly reduce the burden on government spending by enabling preventative care, early detection and targeted treatments, which will lower the incidence of chronic conditions and high-cost procedures. By optimizing resource allocation and improving care efficiency, AI can help streamline systems like Medicare in the US, which costs 14% of total federal spending, leading to long-term cost savings.

Education: AI-powered learning and bridging access gaps

AI is transforming education by providing personalized learning experiences and extending educational opportunities to underserved populations. Virtual classrooms, powered by AI, are making education more accessible to people in remote or marginalized communities. AI tools are also being used to assess student progress and provide customized teaching materials, adapting to the needs of individual learners.

The NASTD survey found that 34% of US states are employing AI in education, focusing on virtual learning environments and remote education tools. Countries like Singapore have pioneered AI-driven education systems, offering students tailored learning paths and real-time feedback.

HCLTech, for example, helped a US-based publication meet the demand for online exams, while ensuring exam integrity through a customized AI solution.

As governments strive for equitable access to education, AI can help bridge the gap, allowing underserved communities to access quality learning resources and enabling students to succeed, regardless of their location or socioeconomic background.

Public Utilities: Enhancing transportation, infrastructure and more

AI is playing a transformative role in the management of public utilities, with applications ranging from transportation management to energy efficiency. In major cities like New York, AI is being used to manage traffic flow, optimize public transport routes and reduce congestion. This is crucial for improving urban mobility and quality of life, particularly as cities grow larger and more complex.

Additionally, HCLTech has worked on a smart city project for a LATAM city to improve public services by creating a more connected digital network, including the delivery of AI-enabled cameras and microphones for crime prevention.

In the NASTD survey, 38% of states reported using AI for transportation and infrastructure management, showcasing its potential for streamlining public utilities and improving urban planning. AI is also being employed to monitor and manage energy use, reduce waste and optimize resources in both urban and rural settings.

Governments around the world are leveraging AI to build smarter cities with sustainable, efficient infrastructures that optimize public services and resource management to create integrated urban ecosystems that promote sustainability and resilience.

Global AI adoption: The leaders

Globally, countries like the US, Finland, Estonia, Singapore and China are at the forefront of AI adoption. These nations have made substantial investments in AI governance and infrastructure, integrating AI into key sectors such as healthcare, transportation and public utilities. Finland and Estonia, in particular, have pioneered the use of AI in government services, with robust AI strategies designed to enhance citizen engagement and streamline public sector operations.

The US is home to some of the largest and most innovative AI hubs, particularly in states like California, Texas, Florida, Massachusetts and New York. These states have committed to large-scale AI investments, with central AI councils and growing AI ecosystems that include startups, technology incubators and government-funded research initiatives, each developing unique AI applications tailored to local needs.

However, as the global race for AI innovation intensifies, countries with regulatory frameworks and national initiatives that support AI adoption and encourage innovation, rather than restrict it, will emerge as frontrunners.

Reshaping the public sector through AI

AI applications in government are rapidly reshaping the public sector, driving efficiency, innovation and improved citizen services. As countries and states continue to adopt AI technologies, the impact of these innovations will only grow. From enhancing cybersecurity to transforming healthcare, education and public utilities, AI is providing governments with the tools needed to cost-effectively meet the challenges of a rapidly changing world.

For countries and states aiming to lead in AI adoption, the path forward lies in strategic investments, the development of robust AI governance frameworks that champion transparency and bias mitigation, innovation and collaboration between government, private sector and academic institutions. By focusing on societal benefits and addressing key issues such as accessibility, data privacy and equitable service delivery, governments can harness the full potential of AI to benefit all citizens and create smarter, more resilient communities.