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.

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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.

The AI Maturity Matrix: Which Economies Are Ready for AI?

BCG’s new AI Maturity Matrix combines an economy’s exposure to AI with its readiness to handle AI disruption. Explore our assessment of 73 economies.

Further Reading on AI in the Public Sector

Explore BCG’s Sustainable Economic Development (SEDA) Archive
SEDA—the Sustainable Economic Development Assessment—is a proprietary diagnostic tool built by BCG, designed to measure a country’s sustainable economic growth and citizen well-being. SEDA defines well-being on the basis of ten dimensions, grouped into three categories: economics, investments, and sustainability. Using a total of 40 indicators, SEDA assesses country performance for each dimension. Dive into past SEDA reports to gain insight into overall social and economic conditions for more than 140 countries.

Economic Resilience Is Built on Societal Well-Being [2021]

The 2019 SEDA Report: Measure Well-Being to Improve It

The 2018 SEDA Report: Striking a Balance Between Well-Being and Growth

Well-Being Trends of the Past Decade [2018]

The 2017 SEDA Report: The Challenge of Converting Wealth into Well-Being

The 2015 SEDA Report: Why Well-Being Should Drive Growth Strategies

The 2014 SEDA Report: Building Well-Being into National Strategies

The 2012 SEDA Report: From Wealth to Well-Being

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.

Managing Director & Partner

Christian Schwaerzler

Managing Director & Partner
Dubai

Managing Director & Senior Partner, Global Leader, Center for Digital Government, BCG X in Public Sector

Miguel Carrasco

Managing Director & Senior Partner, Global Leader, Center for Digital Government, BCG X in Public Sector
Sydney

Recruiting Partner

Christopher Daniel

Managing Director & Senior Partner; Global Leader, Economic Development & Finance in Public Sector and Center of Government
Dubai

Managing Director and Partner, North America Public Sector Practice Leader

Brooke Bollyky

Managing Director and Partner, North America Public Sector Practice Leader
Washington, DC

Managing Director & Senior Partner

Yoshihisa Niwa

Managing Director & Senior Partner
Tokyo

Managing Director & Partner, Global Leader for City Flow by BCG X, Core Member City Mobility Solutions Hub

Richard Sargeant

Managing Director & Partner
London

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