A good balance between technology and culture is crucial for government productivity, according to a study by Economist Impact.
A global study by Economist Impact, sponsored by SAS, shows that both technological innovation and organizational culture determine public sector productivity. From the report Reimagining the Future of Public Sector Productivity shows that public agencies face significant challenges. Rising demand for public services due to an aging population, climate change and economic uncertainty puts additional pressure on budgets and resources.
Main conclusions
The main conclusions from the study are:
- Digital transformation and organizational restructuring are essential for more efficient government.
- AI is being used for predictive analytics and fraud prevention.
- Budget constraints make large-scale reforms difficult.
- Employee engagement is crucial to successful change.
While investments in e-government and AI can contribute to more efficient processes, the research shows that many government agencies do not yet have initiatives to create adaptive organizational structures.
Cautious adoption of AI
Governments are reluctant to adopt new technologies. In the Benelux, 78 percent of respondents say their organization only implements technology once it has proven itself elsewhere. The biggest challenges in technology implementation are:
- Data privacy concerns (77 percent in Benelux, 75 percent worldwide).
- Budgetary constraints (59 percent in the Benelux, 64 percent worldwide).
- Difficulty measuring productivity (50 percent in Benelux, 47 percent worldwide).
Despite these barriers, 90 percent of respondents see AI and digital technologies as an opportunity. Especially predictive analytics (66 percent) and cybersecurity (59 percent) are seen as promising applications. In the Benelux region, 47 percent of respondents expect AI to have a significant impact on their organization within three years.
However, the impact of AI depends not only on the technology itself, but also on the extent to which employees are involved in implementation. Only thirteen percent of Benelux employees are involved in needs assessment. Twenty percent have a say in technology choices and 28 percent are involved in implementation.
Increased productivity leads to more efficient processes and shorter response times, benefiting both employees and citizens. Organizations that invest in both technology and culture have the greatest opportunity to improve their services.