Artificial intelligence (AI) has undeniably brought about drastic transformations across industries and the public sector is no exception. With the rapid evolution of AI technologies, governments worldwide are taking deliberate strides toward leveraging these tools to improve efficiency, enhance decision making and safeguard critical systems and infrastructure.
In this blog, I’ll briefly reflect on 2024 and then look forward to what’s in store for this year, including AI’s influences on public sector operations and the opportunities and challenges that lie ahead.
A quick look back: The public sector in 2024
AI integration in public sector operations
Throughout 2024, governments made steady progress in adopting AI tools to address various operational needs. According to the UN, AI benefits in the public sector were extensive—from opening new areas of scientific inquiry and optimizing energy grids, to improving public health and agriculture and promoting progress on the UN’s 17 Sustainable Development Goals. Governments continued to explore ways to effectively and safely implement AI while also being mindful of its potential harms.
There was also a growing focus on developing secure and unbiased AI systems. This included a heightened awareness of the need to vet AI models thoroughly, both to limit their potential biases and to ensure their security. While acknowledging AI’s far-reaching potential, government leaders continued to tread carefully to balance the tech’s benefits with responsible and ethical adoption.
AI usage in elections
2024 also witnessed an increase in conversations about AI’s impact on democratic processes, such as the U.S. elections. For example, sixteen U.S. states enacted laws around AI’s use in elections and campaigns.
Despite widespread concerns, AI’s role in the U.S. 2024 election cycle was relatively minor, with no discernible effects on election outcomes. This absence of notable AI interference—albeit a positive result—emphasized the need for continued vigilance around AI use in elections and misinformation campaigns.
Read More: How to Tackle Today’s Election Security Challenges
2025 public sector outlook and beyond
Enhanced inter-agency collaboration through AI
One of the biggest focuses for public sector organizations in 2025 is establishing a common operating picture between agencies and levels of government. This initiative aims to create seamless information sharing systems, supported by AI, to improve coordination and response to unfolding events—from disaster management to national security. AI will play a pivotal role in synthesizing data from multiple sources, ensuring timely and accurate insights for faster and more effective decision making.
Leveraging AI to combat cyber risks
While bad actors using AI to launch cyber attacks remains a major threat, 2025 is set to see government agencies adopt AI-powered solutions to fortify cyber defenses. Advanced machine learning models will aid organizations in identifying anomalies, predicting attacks and mitigating disruption—in real time.
Third-party cybersecurity risks is another critical focus area. Public sector agencies need to scrutinize external vendors and partners more closely, with AI becoming a vital tool for mitigating exposure through these channels.
By leveraging AI-powered solutions that detect external cyber events, risks and threats in real time, like that of Dataminr Pulse for Cyber Risk, organizations are able to eliminate blind spots that create risk. This gives organizations increased visibility into vulnerabilities and threats, allowing them to better respond to cyber crimes.
Learn More: How AI Is Transforming Cyber Threat Detection
Top 5 risks for government and public sector leaders in 2025
- Inability to achieve sustainable public finances
- Weak or unsustainable public growth
- Labor shortages and growing work informality
- Deficient digital capacity and cybersecurity
- Failure to adapt to a new geopolitical landscape
Source: EY
Preparing for new leadership, new priorities
In the U.S., the 2025 Trump administration brings not only new leadership but also new priorities centered on innovation and efficiency. For example, President Trump recently announced the Stargate Project—a joint venture led by SoftBank, OpenAI, Oracle and MGX—that aims to invest $500 billion over the next four years in building new AI infrastructure and creating hundreds of thousands of jobs in the U.S.
In addition, the establishment of the Department of Government Efficiency (DOGE) signals a fresh approach to modernizing government agencies. According to recent executive order issued by President Trump, AI is expected to play a central role in the department’s efforts to “modernize federal technology and software to maximize governmental efficiency and productivity.”
The DOGE initiative could also spur public sector agencies to explore creative ways to implement AI. This underscores a broader theme for 2025—embracing cutting-edge technologies to not only make public sector organizations lean, but also improve service delivery on a national scale.
Designing and implementing global AI policies
Governments worldwide are expected to prioritize fostering ethical AI practices, as well as creating robust AI governance legislation and policies in 2025. According to the United Nations, many countries have been left out of international AI governance conversations.
In fact, just seven countries (Canada, France, Germany, Italy, Japan, UK and U.S.) are parties to seven prominent non-UN AI initiatives—whereas 118 countries, primarily in the global South, are parties to none.
The challenge of balancing AI innovation with public trust
According to the World Economic Forum, when looking at the next 10 years, global organizations list adverse outcomes of AI technologies among their top risks.
Policymakers will need to focus on scalability, fairness and inclusivity through responsible AI design and implementation. Legislation needs to ensure that AI systems serve every citizen equitably, regardless of socioeconomic or demographic factors.
As we move forward in 2025, I look forward to seeing how governments and public sector organizations worldwide will further explore ways to harness AI’s benefits while addressing persistent challenges, such as security and privacy concerns and ethical considerations. One thing is clear: AI is no longer just an experiment. It’s an essential tool for efficient and adaptable governance.
Learn more
Dataminr’s AI platform is at the forefront of innovation in predictive, generative and regenerative AI. Get a first-hand look to see how it enables governments to rapidly understand the scope and impacts of critical events, enabling them to act faster and keep their people and assets safe in an increasingly unpredictable world.
For more on how government agencies are using generative AI (GenAI), the challenges in doing so and GenAI adoption best practices, read GenAI In State and Local Government: Adoption Challenges and Tips.