AI is changing everything – including making public services more efficient

A screen displaying AI-generated art at the World Economic Forum in Davos, Switzerland, on January 14. EPA

In this age of rapid technological advancement, we find ourselves navigating an era marked by groundbreaking innovations. At the heart of this journey, artificial intelligence emerges as the driving force. It is fundamentally altering the way businesses and governments function around the globe, laying the groundwork for the future. Just look at the anticipated impact.

The World Economic Forum anticipates a profound transformation in the global job landscape, with AI and automation expected to result in the net creation of about 12 million jobs by 2025 (despite displacing 85 million roles, 97 million new ones are projected to emerge).

In the education sector, the market for AI is projected to soar to about $20 billion by 2027. The healthcare sector is poised to add $150 billion in value to the US economy alone by 2026. The financial services sector is also undergoing a significant change, with AI-driven innovations such as robo-advisers and fraud detection systems projected to generate up to $1 trillion in additional value for the global banking industry by 2030.

The economic implications of AI and automation are vast and multifaceted across sectors. Reuters

In manufacturing, AI and automation are set to revolutionise the sector by improving productivity, reducing downtime and fostering innovation. The potential economic impact is substantial, with estimates suggesting that AI could contribute up to $3.7 trillion in value to the global manufacturing industry by 2030.

For public services, AI is a game-changer in every sector, in every walk of life. AI-driven predictive analytics can identify patterns and predict public health outbreaks before they happen, allowing for swift intervention. By analysing historical data, AI algorithms can forecast criminal activities and hotspot locations thus enhancing public safety through predictive policing and reshaping law enforcement.

It is also revolutionising the efficiency of public services through chatbots and automation of routine tasks, reducing processing times for everything from tax filings to licence renewals, providing citizens with 24/7 access to information and services, ensuring that queries are answered promptly and accurately, thereby enhancing user satisfaction and engagement.

On a wider scale, smart city initiatives powered by AI are turning urban centres into models of sustainability and efficiency. AI applications optimise traffic flow to reduce congestion and emissions, while AI-driven energy management lowers costs and carbon footprints.

It is also helping us chart a more sustainable future.

From monitoring deforestation and biodiversity loss to optimising water usage and renewable energy sources, AI applications are enabling governments to tackle some of the most pressing environmental challenges. Through satellite imagery and sensor data, AI algorithms can track changes in ecosystems in real-time, empowering governments to enact protective measures with unprecedented precision and speed.

These applications represent just the tip of the iceberg in AI’s potential to revolutionise government operations. As governments continue to embrace AI, the promise of more efficient, responsive and proactive governance becomes not just a possibility, but a reality.

Across all these sectors, the economic implications of AI and automation are vast and multifaceted. The public sector, in particular, is on the verge of an efficiency revolution. Gartner, the US-based technological research and consulting firm, forecasts a significant increase in AI-driven government services this year, signalling a pivotal moment in the adoption of AI technologies.

With more than 30 countries formulating national AI strategies, there is a concerted effort towards harnessing AI for enhancing service delivery, streamlining decision-making processes and ensuring more accessible public services.

However, transitioning to an AI-integrated governance model is a global endeavour that touches every corner of the world.

While the EU’s General Data Protection Regulation (GDPR) sets a precedent with its strict guidelines on AI and data usage, addressing concerns of data privacy and ethical considerations, countries around the globe are grappling with similar challenges as they navigate the complexities of implementing AI in governance.

Every government must establish robust ethical frameworks, invest in digital infrastructure and AI research, and cultivate public-private partnerships

In Asia, Singapore’s Personal Data Protection Act has been updated to accommodate the advancements in AI, while South Korea has introduced comprehensive AI ethics guidelines, aiming to balance technological advancement with ethical considerations.

In North America, the US is exploring sector-specific regulations rather than a broad, overarching framework like the GDPR.

In the UAE, the ambitious AI strategy, underscored by the appointment of Omar Al Olama as the world’s first Minister for Artificial Intelligence in 2017, aims to position the country as a global AI leader by 2031.

Looking ahead, and to fully leverage AI’s capabilities, every government must establish robust ethical frameworks, invest in digital infrastructure and AI research, and cultivate public-private partnerships to draw on the private sector’s expertise and resources.

This is the new, and mission-critical, public good, as well as the new indispensable infrastructure. Just like all countries had to build roads in the past century to connect and trade, they must now build AI infrastructure or risk being left behind. This will define the new competitive advantage of a nation.

As we navigate the “Age of AI”, the integration of the technology into government operations signifies governance characterised by enhanced efficiency, responsiveness and proactive policymaking. While challenges remain, a strategic and balanced approach can usher in a new governance paradigm, ensuring that AI serves as a force for public good and a catalyst for innovation and sustainable development.