Governments worldwide are increasing their use of artificial intelligence in public administration, but face significant barriers to full implementation, according to a new report released Friday by the Organisation for Economic Co-operation and Development (OECD). The report, titled Governing with Artificial Intelligence, evaluates over 200 real-world use cases and dozens of policy initiatives across 11 core government functions. The OECD found that while AI is delivering measurable improvements in areas such as service delivery, disaster response, and public engagement, many deployments remain in pilot stages due to institutional, regulatory and technical constraints.
OECD report highlights public sector adoption of AI and the urgent need for trust, oversight, and coordination frameworks.
The report is the first of its kind to provide a comprehensive assessment of how governments are adopting AI technologies to enhance efficiency, effectiveness and public trust. AI is being used in various public-sector applications, including chatbots that respond to citizen inquiries, forecasting tools that anticipate natural disasters, and platforms that cluster and analyze public opinion during consultations. In the justice sector, AI supports case management and decision assistance, while tax administrations use it to detect anomalies and reduce fraud.
However, the report notes that advanced generative AI systems are used less frequently, particularly in areas with complex regulatory or data governance requirements. Despite the growing presence of AI, adoption across public administration is uneven. The report finds that public services, civic engagement, and justice are leading in AI use, while civil service management, policy evaluation and strategic planning trail behind. Legal, technical and financial hurdles, along with skills shortages and outdated IT infrastructure, are cited as key factors slowing broader integration.
OECD urges governments to focus on responsible AI use
The OECD emphasizes that governments face unique challenges not encountered in the private sector. Access to high-quality, interoperable data remains a persistent issue, especially when systems are fragmented or outdated. High implementation costs, legacy infrastructure, and unclear procurement pathways also limit the ability of public institutions to scale up AI solutions. In addition to implementation barriers, the report highlights operational risks linked to AI use in government settings. These include biased decision-making, system failures, lack of transparency, and potential exclusion of underserved groups.
Without proper oversight, such risks could undermine public trust in government institutions. The report calls for a cautious but active approach to mitigate these challenges through clear governance structures and responsible data management practices. OECD Secretary-General Mathias Cormann said the adoption of AI in government must be matched with appropriate policy frameworks to ensure public confidence and accountability. He pointed to the OECD’s Framework for Trustworthy AI in Government as a guiding document for public entities deploying AI technologies.
Investment and procurement reforms vital for AI in government
The report outlines seven key enablers for successful AI implementation: governance, data access, digital infrastructure, workforce skills, investment, procurement mechanisms and collaboration with non-government actors. It stresses the importance of cross-government coordination, stakeholder engagement, and the establishment of clear but flexible regulatory guardrails. The findings indicate that AI has the potential to transform the delivery of government services, but only if institutional readiness and regulatory structures keep pace with technological advancements.
As countries accelerate their digital transformation efforts, the OECD’s analysis provides a benchmark for evaluating progress and identifying best practices in the responsible use of AI by the public sector. The OECD includes 38 member countries and provides policy advice and comparative data to support economic growth, governance reform, digital innovation, and technological development among its members. The report aims to assist governments in aligning AI deployment with democratic values, regulatory compliance, and long-term public sector resilience in a rapidly evolving digital landscape. – By Content Syndication Services.
