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Artificial intelligence in the public sector: how best to manage an epoch-making transformation starting with people

Artificial Intelligence represents a great opportunity for innovation in public administration, but the introduction of algorithms in public organisations entails a profound transformation, which must be managed with the right tools

22 March 2024

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The Artificial Intelligence represents a great opportunity for innovation for thePublic Administration, but the introduction of algorithms in public organisations entails a profound transformation, which must be managed with the right tools. On the one hand, the PA must manage to 'govern with AI', experimenting with the different applications in different, in some cases still unexplored, areas. On the other hand, it must 'govern with AI', carefully defining rules and application guidelines, and introducing the skills needed to manage the new processes. On this path, it must succeed in ensuring that 'delegation to the machine' translates into real efficiency, rather than into disinvestment with dangerous effects.

The technological challenge

An effective and aware management of AI can bring in the Public Administration a rationalisation of digital service processes, an improvement in information processing capacity and support in decision-making processes, through solutions ranging from document and text analysis, the automation of research phases, regulatory analysis, reporting, the use of virtual assistants in interfacing with citizens, up to the most advanced decision support solutions through data analysis. Taken as a whole, Artificial Intelligence can radically improve administrative action and the PA's relationship with citizens.

This technological challenge is already underway and will soon have disruptive effects in the public sector as well. Certainly, work in the PA will be strongly impacted in the coming months. Gradually, with the spread of Artificial Intelligence solutions, we will see automated systems and tasks managed by machines, while people may be allocated to other, more skilled tasks. This transition presupposes that the people who will have to work with the new systems have the appropriate technical as well as management skills.

The risk to be avoided by all means is that the spread of Artificial Intelligence, instead of being an advantage, will turn out to be a detriment to human skills, through a delegation to the machine that de-empowers and disempowers people (what is called Automation Bias in the literature), in a dangerous slide towards an automation of decisions and processes without human governance.

Starting with people

To avoid this risk, in order to effectively manage the AI transformation, the public administration must start with people, in several ways. First of all, a major reskilling and upskilling process of the public sector on the technology front must be started as soon as possible. That does not mean turning all employees into AI specialists - that would not be realistic or even useful - but equipping people with the necessary skills to manage processes, including the soft skills needed in a momentous transformation phase.

At the same time, however, it is necessary to attract new resources to the PA, with appropriate digital, project management, and management skills. On this, we have seen important steps forward in recent years: there has been an investment in hiring more and better, trying to catch up with the country's historical backwardness, if we consider that the Italian PA has been lacking 168,000 workers in 10 years and the number of public employees in relation to the population is lower than that of the main European countries.

In addition to recruiting new qualified people, however, public organisations must really be able to embrace and harness energies, allowing old and new employees to unleash their potential for change, to introduce critical and creative thinking, bringing in some cases 'rebellious' innovation capable of breaking the mould. Only by building growth paths, career plans and work environments that are stimulating and open to creativity, among other things, do PAs have the opportunity to be attractive to the best talent. New organisational culture. From a broader point of view, in order to face the new challenges posed by the change brought about by artificial intelligence, PA needs a new organisational culture based on internal and external listening, because a hierarchical structure based on bureaucratic procedures risks losing the game when confronted with the effectiveness of algorithms.

New Organisational Culture

From a broader point of view, in order to face the new challenges posed by the change brought about by artificial intelligence, a new organisational culture based on internal and external listening is needed in PA, because a hierarchical structure based on bureaucratic procedures risks losing the game when confronted with the effectiveness of algorithms.

The model to which PA should strive is the 'Sense & Respond' model described by Gothelf and Seiden, an organisation in continuous adaptation based on listening and responding to feedback gathered, through rapid experimentation and correction. The introduction of AI-based solutions will necessarily require several phases of testing, trial and error, analysis of use cases and best practices, and active listening. In this complex process, people must feel free to propose ideas, encouraging innovation and the sharing of expertise. Only in this way can innovation be unleashed.

The role of public managers

In this scenario, the role of managers is crucial, who must create the organisational conditions to accompany the transformation of AI so that it is truly effective, valuing people and orienting the design of public services in favour of the end users of administrative action.

As an enabling condition, public managers must study and learn about the new services enabled by artificial intelligence solutions, thoroughly understanding the opportunities and risks, in order to orient the use of algorithms towards the founding and shared values of our institutions. Then, they must build an organisational culture capable of embracing change, encouraging people to get involved, contribute ideas and experiment.

On the path to automating processes, they must curb any new drift of defensive bureaucracy, bringing to the centre the role of men governing machines, and not vice versa, to truly produce efficiency with innovation.

*FPA CEO.

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