Of the many ways you might measure the potential value of AI on governments, one statistic jumps out. According to Gartner®, 2027 spend on AI software by use case, digital government services, is projected to reach USD41.8 billion in 2027. That tops all other industry sectors, with banking coming in second at USD28.2 billion.1 This represents a significant shift in priorities, as governments recognize the potential of AI to enhance public sector efficiency, transparency, and citizen engagement.
As Microsoft’s global government lead, I am inspired that so many agencies and organizations are not hedging their bets with AI, as was sometimes the case with prior waves (cloud computing and the rise of mobility come to mind). Instead, many governments are taking thoughtful early steps to explore AI and invest in early innovation.
Microsoft for Government
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How AI is transforming government IT
At Microsoft for Government, our job is to help governments make the most of their AI investments with best-in-class solutions that are tailored to their unique needs and brought to life through our global network of technology partners. Since the advent of generative AI in late 2022, we have worked closely with a wide array of agencies and organizations to develop targeted use cases designed to improve everything from citizen services to cybersecurity.
This level of innovation is even more impressive considering the unique pressures facing governments. Leaders must deliver results within constrained budgets and limited resources, respond to shifts in societies and workforces, and protect some of the most heavily cyber-attacked data and systems in the world.
Here’s a brief look at four essential areas where AI is helping to empower customers and reshape the impact of government around the world.
1. Delivering personalized experiences
Unproductive interactions with automated call centers and outdated websites are the bane of many constituents’ relationships with their government agencies. Well-intended at the core, too many of these services fail to connect with constituents, recognize their needs, and deliver useful information in a timely way.
Generative AI is revolutionizing these resources with self-service portals and contact centers that provide modern, user-friendly digital experiences. The combination of natural language processing (which enables machines to understand and generate human language), and semantic search (which goes beyond simple keyword matching to comprehend the meaning of a query) makes it possible to readily create chatbots and agents that interact smoothly with people and reason over vast amounts of data to instantly provide solutions.
An amazing example is a chatbot in India called Jugalbandi, built on Microsoft Azure OpenAI Service. Jugalbandi has bridged the nation’s vast linguistic divide by understanding spoken and typed questions, then responding in the user’s local language, all on widely used mobile devices. By covering 10 of India’s 22 official languages and 171 government programs (so far), it makes important information more accessible and reduces cost and friction for constituents and employees alike.
2. Empowering the government workforce
Ensuring that employees can focus on meaningful work is key to government success. In public service, many people are motivated by the opportunity to help others and solve important societal challenges. When subpar technology solutions create inefficiencies and cause unintended problems, productivity and morale suffer.
Government workers, like employees everywhere, welcome services and solutions that reduce friction, keep them connected, and make them more productive. Solutions that use generative AI’s unique predictive analytics and forecasting capabilities can help employees improve their decision-making and overall efficiency.
In the United Arab Emirates, the Dubai Electricity and Water Authority (DEWA) DWEA) built a new Business Requirement Document Generator using Microsoft Azure AI Services that enables employees to enter minimal information and easily generate important documents. Trained on 500 billion parameters, it proactively suggests required information and fills in gaps and other important information. What used to take one week can now be done in one day, including reviews. Complementing the solution, the Authority also boosted productivity by adopting Microsoft 365 Copilot, which is proving invaluable in helping employees to work faster and effectively, notably on research tasks.
3. Modernizing government operations
In many organizations and agencies, the journey to cloud computing has been hindered by important considerations unique to government, including cost, security, and a reliance on legacy systems which are often regarded as so critical that they can’t be modernized, despite being slow, complex, and vulnerable. As cloud and AI solutions become more mature and available, however, the barriers to modernization are dropping, while the price of inaction only rises.
Generative AI’s code generation capabilities (which empower non-developers to readily create AI applications) make it possible to manage critical workloads in the cloud, while gaining new benefits in flexibility, scalability, and resilience across agencies. This can unlock critical data stuck in silos and drive better decision-making for officials who, for example, can make more informed decisions on proposed legislation. Likewise, for citizens, it can turn the process of obtaining a building permit into a productive interaction with a helpful virtual agent, rather than a gauntlet of arcane rules and regulatory snags.
When Gamle Oslo realized that a district manager needed to log into 25 different systems to find relevant data for the city’s kindergarten services, they decided to build a unified data platform using Microsoft Fabric. The solution collects and analyzes all of the district’s data on housing, employment, health care, and public services, which had formerly been disconnected. Unified data with Fabric has improved many processes and opened the door to new benefits and insights, including setting the stage for new AI innovation.
4. Securing data and protecting resources
More than any other industry sector, governments are prime targets for cyberattacks. According to Microsoft’s Digital Defense Report for 2023, 53% of attacks worldwide focused on government organizations and critical infrastructure2. Over the last 18 months, public sector organizations have seen a 150% increase in cyberattacks3 due to the combination of escalating geo-political conflicts and increasing financial motivations.
This dangerous threat landscape urgently requires governments to improve their ability to safeguard critical systems, enhance data protection, and maintain compliance with a host of regulations. Making the challenge even more difficult for governments is the growing demand for skilled cybersecurity staff. Worldwide, there is a shortage of 4 million cybersecurity professionals4, and the problem can be worse for governments, who often struggle to attract and retain talent.
Cloud and AI technology can help level the cybersecurity playing field in a number of important ways. First, the Microsoft Cloud platform provides built-in security and resilience, reflecting our commitment to making security and compliance our top priority. Also, our comprehensive security offerings help an organization craft its own strategy using end-to-end products and tools. And finally, Microsoft Copilot for Security uses generative AI to empower security analysts to rapidly assess an organization’s security posture and create actionable insights and solutions at much greater speed than current approaches.
When the Dominican Republic’s National Cybersecurity Center (CNCS) recognized increases in both frequency and sophistication of cyberattacks, they responded by modernizing the government’s information system and in national critical infrastructure. Their comprehensive approach included adopting a variety of Microsoft solutions to monitor, analyze, manage, and respond to cyber threat cases across the country. The benefits of modern cybersecurity were soon evident, as the event correlation system running on Microsoft Sentinel established relationships between indicators of compromise four times faster than earlier approaches.
See AI in government for yourself
Beyond these transformational benefits, the explosion of AI innovation in government is also advancing the move to modern cloud and data platforms, which is not only essential for enabling AI but also delivers broader benefits in efficiency, productivity, and security.
The insights and examples shared here only just scratch the surface of what our customers are creating and learning. We’re discovering new and amazing things on a daily basis, and we invite you to become engaged.
To see for yourself and learn more:
- Attend the Microsoft AI Tour—a free, one-day event with experts, industry leaders, and peers to explore how AI can drive growth and create lasting value. Events are happening worldwide through March 2025.
- Visit us at Smart City Expo World Congress in Barcelona, Spain, November 5–7, 2024. I will present on the topic of “Next-Gen Tech Leading the New Urban Era,” and other Microsoft for Government sessions will be presented by Kathleen Mitford, Kirk Arthur, Jeremy Goldberg, Doug Priest, and Hannah Prior.
- To discover how the city of Madrid is innovating to become a smarter, more sustainable city, download the new SmartCitiesWorld City Profile. And for a discussion of the new profile, including a new AI-driven virtual assistant, register for a SmartCitiesWorld webinar on October 22, 2024.
Sources:
1Gartner, Compare AI Software Spending in the Government Industry, 2023-2027, By Daniel Snyder, James Ingham, Inna Agamirzian, 27 March 2024. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
2Microsoft Digital Defense Report 2023
4ISC2 Cybersecurity Workforce Study, November, 2023
Didier Ongena leads Microsoft’s Worldwide Public Sector Government team, focused on helping customers realize transformational impact through technology. He and his team help customers address global challenges such as sustainability, mobility, the energy crisis, healthcare, education, and more. They are eager to add value to government agencies worldwide.