Central government leads the way in data analytics and AI for public sector transformation 

New research suggests that central government is setting the pace for digital transformation.

A survey by Granicus shows 39 percent of central government respondents identify data analytics and artificial intelligence (AI) as top priorities over the next three years.

Drawing on insights from 634 professionals across central government and other sectors such as local government and the NHS, the study reveals that AI and Machine Learning (ML) (39 percent) are viewed as the technologies most needed to bridge the gap between today’s capabilities and the digital services citizens expect, followed by data analytics (30 percent) and cybersecurity (27 percent).

Confidence in using data to drive decisions varies significantly across the wider public sector. While 67 percent of central government employees are leading the way in utilising data, almost a quarter of local government staff (22 percent) and NHS workers (23 percent) are not confident in their capabilities. This disparity points to persistent siloes and missing opportunities to share insights that could improve decision making across departments. 

Alongside the use of data, the focus on AI and Machine Learning will be crucial for central government in improving internal efficiency and rebuilding trust in public services. As citizens expect faster, smarter, and more personalised services, instilling confidence that these technologies are safe, ethical and secure will be key. 

Ian Roberts, UK managing director of Granicus, commented: “The rise of AI and data analytics presents a huge opportunity for the public sector to improve service delivery and citizen outcomes. Central government has a critical role to play in setting the pace, providing strategic leadership and ensuring collaboration across departments, all while rebuilding trust with citizens and shaping services for the future.

“Our research shows that without clear leadership and investment, these technologies such as AI, ML and data analytics will not reach their full potential. It’s not just about having the right tools, it’s about using them effectively.”

The paper, Next-Generation Public Services: Bringing Everyone on the Digital Transformation Journey, also found that:

• 69 percent of those working in digital transformation roles also ranked AI and data analytics as their leading focus.
• Despite this, 36 percent of public sector workers cited middle management and 34 percent executive leadership as key barriers to adoption.
• Over a quarter of respondents (27 percent) said leadership and vision are the most essential skills for preventing their organisation from closing the gap between current and future digital services.