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Macrh 4, 2025 12 min Rethinking Government Emerging tech can help governments deliver great experiences Industries Research Download Report
Rethinking government
Top 4 Takeaways Meet the pacesetters
How digital leaders create stakeholder value
Intelligence at scale
From silos to AI-powered workflows
AI for the people
Great experiences build trust
Risk and regulation
The future of compliance
Top takeaways
Introduction

Around the world, governments run their operations and deliver services using legacy tech from the 1980s and 1990s. While these systems still work, they often fail to meet the expectations of modern citizens and public sector employees.

So, how can governments deliver the intuitive, personalized experiences that their stakeholders increasingly demand? It will take a new approach to service delivery, one that’s both digital and human-centered. Government leaders need to swap organizational silos for AI-powered workflows that connect people, data, and processes. In short, they need to rethink how work gets done at scale.

Our new report on public sector transformation shows the path forward. In collaboration with our research partner Thought Lab, we surveyed 1,248 government IT leaders in 20 countries around the world. Our research identified a small cohort of digital Pacesetters that are using AI and other emerging technologies to deliver positive, human experiences that create value and build public trust. Read on to see how Pacesetters are creating the future of government.

Nick Tzitzon Global Executive Committee Member
Report highlights Survey demographics 1,125 global banking executives 12 countries “Digitally transformed public sector organizations leverage AI-driven digital workflows to connect people, data, and processes to realize value quickly and create positive, human experiences; improve public confidence; and build trust.” Justin Herman VP, Global Public Sector, ServiceNow only 27% of government organizations say their current digital transformation efforts allowed them to provide more humanized experiences only 25% of government organizations say their current digital transformation efforts allowed them to provide more humanized experiences Pacesetters do 
things differently 99% are scaling processes to drive cross-functional collaboration
(vs. 61% of others) 97% are automating workflows 
for employee productivity
(vs. 46% of others) 70% are mid-to-advanced implementation of an 
end-to-end platform (vs. 24% of others) Pacesetters do 
things differently 97% are digitizing governance, risk, and compliance (vs. 51% of others) 70% are mid-to-advanced implementation of an 
end-to-end platform (vs. 24% of others)
01 Meet the Pacesetters

About 22% of the government agencies in our study qualify as Pacesetters, meaning they are well ahead of the pack when it comes to implementing digital strategies that create value at scale.

To be a Pacesetter, you can’t just throw money at the problem or focus on one area of operations at the expense of others. Instead, Pacesetters drive progress across the organization in line with strategic goals and objectives.

Pacesetters are reaping big rewards. Compared to others, they report:
  • Higher asset utilization (50% vs. 36%)
  • Improved compliance and risk management (49% vs. 30%)amet
  • Faster and better public services (41% vs. 27%)
  • Greater employee productivity (41% vs. 29%)
PACESETTERS ARE REALIZING 1.5X faster time to value on transformation initiatives compared to others (62% vs. 41% of others)
wf ai and scale chart

Pacesetters bet big on AI
Percentage of Pacesetters making large investments to optimize tech infrastructure
02 AI and scale Pacesetters embrace traditional and generative AI

Pacesetters are deploying various forms of AI across the organization to increase efficiency, improve service delivery, and make data-driven decisions. Compared to others, they focus more on:

  • Continuous service improvement (53% vs. 35%)
  • Personalization of citizen communication (51% vs. 40%)
  • Citizen queries and recommendations (41% vs. 37%)
Pacesetters focus on people and processes. They are more likely to:
  • Implement an operating model that mobilizes IT and government processes (47% vs. 30% of others)
  • Communicate transformation goals from top down, with rewards for achievement (46% vs. 39% of others)
  • Regularly monitor IT performance against plans (46% vs. 37% of others)
Pacesetters focus on people and processes. They are more likely to:
  • Implement an operating model that mobilizes IT and government processes (47% vs. 30% of others)
  • Communicate transformation goals from top down, with rewards for achievement (46% vs. 39% of others)
  • Regularly monitor IT performance against plans (46% vs. 37% of others)
government pacesetters bet big on ai chart
03 Customer experience Pacesetters put customers first They are investing heavily in tech that improves experiences and builds trust.
wf government pacesetters put customers first chart
AI is the secret sauce Over the next three years, Pacesetters will increasingly use AI to power customer experiences.
wf government ai is the secret sauce chart
Generative AI allows us to design personalized screening and service mechanisms for government services, meeting citizens’ preferences and needs. Commissioner National finance/treasury agency, Japan
47% Compared to others, Pacesetters collaborate more of Pacesetters have achieved increased customer engagement by investing in technology to improve experiences (vs. 34% of others)
96% Pacesetters have made mid-to-advanced progress digitizing risk and compliance systems (vs. 49% of others)
04 Risk and regulation New risks, new playbook Over the next three years, government organizations must adapt to new regulatory frameworks that address emerging technological, social, and environmental concerns. To navigate this dynamic landscape, Pacesetters are stepping up their efforts to improve governance, risk management, and compliance. Pacesetters’ tech priorities include:
  • Modern, cloud-based IT platforms 
  • Cybersecurity technologies for real-time risk detection, protection, and response 
  • Automated workflows around risk and resilience
Pacesetters focus on digital compliance solutions. These areas will be top priorities over the next three years:
  • Install an integrated risk management program
  • Digitize, automate, and integrate compliance controls 
  • Monitor privacy and data loss to maintain compliance
We’re implementing generative AI for tax return processing and customer service chatbots, enhancing taxpayer satisfaction and compliance. Chief Revenue Office U.S. state revenue agency
Over the next three years, Pacesetters will increasingly use AI to manage risk and compliance.
wf pacesetters ai risk compliance 3yrs chart
TAKEAWAYS Pacesetters show the way 1 They drive government transformation at scale via pervasive use of cloud, SaaS, and API solutions. 2 They deploy digital tools to break down silos and create enterprisewide commitment. 3 They use the latest security tools to predict, detect, and respond to cyber threats. 4 They deliver frictionless customer experiences that simplify transactions, personalize engagement, and make it easy to access resources. 5 They optimize tech infrastructure by implementing end-to-end IT platforms that interconnect workflows and departments. They use advanced tech to simplify regulatory compliance and provide integrated risk management. 6 They provide the digital tools and experiences employees need to excel, including mobile apps, digital performance management systems, and automated employee and HR workflows.
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Rethinking Government Emerging tech can help governments deliver great experiences. Get the full report
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