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AI in the Public Sector

For more than ten years, BCG reports have analyzed the connection between a country’s sustainable economic growth and citizen well-being. This year, we explore how AI will affect economies worldwide.

BCG’s AI Maturity Matrix helps policymakers analyze their economy’s place in the evolving global AI landscape by examining two critical dimensions: AI readiness and AI exposure. By understanding the factors that shape an economy’s AI progress, leaders can harness the technology to boost GDP, economic resilience, and competitiveness—as well as shape how humanity uses this powerfully disruptive technology.

This index provides a broad view of global adoption: the vast majority of economies are gradually embracing AI, but there is a small, influential group of AI pioneers that take their place at the forefront. No matter where they are in their AI journey, all economies can greatly enhance their AI know-how. Evaluating the many variables that shape AI in the public sector will help government leaders guide their countries forward.


Explore the AI Maturity Matrix

The dashboard helps you easily view AI engagement and explore factors like sector deployment, exposure, investment, regulation, and readiness for disruption.

Read Our Latest Insights on AI in the Public Sector

Further Reading on AI in the Public Sector

Article

What Will AI Do for Government?

GenAI and other AI tools present unique challenges and risks for government organizations. But if implemented responsibly, AI technologies can help governments make citizens’ lives better.

Explore BCG’s Sustainable Economic Development (SEDA) Archive


How Will AI Affect the Economy?

AI will have major impacts on the economy, affecting everything from competition, to markets, regional foreign relations, talent development, and more. For countries willing to see AI as an economic priority in the coming years, the advantages are there for the taking. Our research highlights the following effects AI will have on the economy:

  • Foreign Direct Investments and International Trade. Forward-thinking industrial sectors that make gains with AI will attract foreign investment and trade—leveling the playing field and allowing even emerging economies to compete with much more advanced ones.  
  • Growing GDP. AI will take on progressively larger shares of the GDP in countries that are able to produce innovative products and services.  
  • A Universal Force. Ultimately, AI will disrupt every economy in the world, if even to a limited extent, as every country has at least some exposure to the changes that the technology will bring.  

Meet Our Experts on AI in the Public Sector

Connect with a team of BCG experts who developed the AI Maturity Matrix to learn more about AI trends and opportunities for the public sector.

Subscribe to our Public Sector E-Alert.