The adoption of artificial intelligence (AI) in governments is expected to experience accelerated growth in 2025, but will it be enough to overcome challenges such as fraud, low-quality data, and regulatory uncertainty? Experts from SAS share their perspectives.
A recent global study titled Your Journey to a GenAI Future: A Strategic Path to Success for Government reveals that 84% of government decision-makers plan to invest in generative AI (GenAI) in the upcoming fiscal year. However, internal challenges, regulatory concerns, and the increase in fraudulent activities could limit the impact of these initiatives.
Internal Obstacles and the Potential of Unstructured Data
Lack of digitization and skills
According to Ensley Tan, consulting leader for the public sector at SAS Asia Pacific, governments still face significant difficulties in harnessing the potential of AI due to unclear processes, limited data handling skills, and insufficient digitization. This could lead to a growing gap between expectations and the actual benefits of AI investments.
Unstructured data as key to efficiency
Ian Kramer, senior manager in the healthcare advisory area in the U.S., points out that AI will begin to leverage unstructured data to accelerate processes and improve decision-making. This trend marks the end of approaches overly reliant on human resources and opens up new possibilities for policy formulation.
Risks and Benefits of AI in Government
The “algorithmic gap”
Shaun Barry, global director of solutions for risk, fraud, and compliance at SAS, warns of a potential divide between countries that adopt AI and those reluctant to innovate due to fears of its implications. The former will thrive with greater economic growth and competitiveness, while the latter may fall behind.
Beyond generative AI
Tom Sabo, principal solutions architect at SAS, emphasizes that generative AI alone will not be sufficient. Governments will begin to explore multimodal approaches that integrate text analytics to improve data quality and empower experts in specific areas rather than replace them.
Governance, Ethics, and Regulation
AI governance as a strategic enabler
For Steven Tiell, global head of AI governance at SAS, strong governance will enable governments to execute projects with confidence, mitigating risks related to bias and regulatory compliance. Additionally, consistent standards across agencies will foster collaboration and resource sharing.
Security institutes for AI
Reggie Townsend, vice president of data ethics at SAS, predicts that security institutes for AI will play a crucial role in harmonizing responsible principles globally, reducing regulatory chaos, and promoting interoperability.
Fraud, Security, and Disaster Management
An increase in AI-enabled fraud
Access to generative AI tools has made it easier to create synthetic identities en masse, significantly increasing fraud risks in areas such as taxes, social benefits, and procurement. Teya Dyan, senior consultant at SAS, states that tax agencies will adopt robust fraud detection capabilities to address these threats.
AI in disaster management and public safety
Investment in real-time applications and smart sensors for disaster management, infrastructure, and public safety will be a priority, according to Katy Salamati, senior consultant at SAS. Tools like generative AI will enable rapid identification and mitigation of threats, improving the protection of people and property.
Conclusion
The adoption of AI in governments in 2025 presents a landscape full of opportunities and challenges. While its potential to transform productivity and efficiency is undeniable, success will depend on governments’ ability to overcome internal barriers, establish ethical governance, and tackle fraud with the same advanced technologies. The question is not whether AI will change governments, but how they will manage that change.
Source: SAS Press Release