Slow roll: generative AI / LLM impact will slowly enter the public sector in 2024
Generative AI brings the promise of augmented intelligence and speed of learning. However, before we wave goodbye to the ‘Highest Paid Opinion in the Room,’ the public sector CIOs will continue to focus on modernising their organisations. However, the value of generative AI and Large Language Models (LLMs) is predicated on data. We’ll continue to see a focus on getting the data platforms and strategy in place in 2024 due to the cost efficiencies and promise that new technology, like generative AI and LLMs, offers to the public sector. The public sector lags GDP by 18-24 months and it won’t be until 2025 or 2026 that we really see how generative AI and LLMs can help unlock the value of governments’ structured data to drive efficiencies around servicing constituents and carrying out missions.
Governments will awaken and organise to the promise of data marketplaces to grow GDP
Countries are beginning to realise the value and demand for their sovereign data. There is demand for hyper-local weather data, financial trends (such as where did you file your tax returns), and citizen migration data that can be used for economic modelling, news reporting, and infrastructure planning. More governments, both in the US and around the world, will realise and organise to act on the tremendous value in sharing their data in marketplaces. Data is most useful and valuable when it is shared to increase start-up and ecosystem development, enhance local innovation and job creation, and expeditiously solve problems.
Cities and states will utilise dynamic policy making as they reach data maturity
With the investment of SaaS technologies and increased data sharing between the public and private sectors, cities and states begin to utilise data in near real-time for budgeting and policy making. Rather than taking eight months to calculate and aggregate home values to inform property taxes that will shape public budgets, policymakers can analyse this data as it’s published to avoid a budget crisis in eight months. Additionally, policymakers can accurately account for future budget allocation for roads, schools, and public safety. SaaS technologies now make it possible to expedite support of foster care providers, match appropriate providers with children, and then help allocate social and financial resources to those providers on behalf of children.
Proprietary business models will begin to face political headwinds
The public sector’s relationship to the tech industry has historically been oriented around proprietary business models. Already in 2023, we have seen bi-partisan support around proposed bills, like the Multi-Cloud Innovation and Advancement Act [in the United States]. It is likely this legislation and other similar bills will pass in 2024 as the government looks to embrace multicloud platforms to increase resiliency and retain the sovereignty of their country’s data, especially as we begin to see the market cost for government-created data exponentially increase.
