AI in Government and Public Services Market Growth and Impact of Machine Learning Natural Language Processing and Robotic Process Automation on Public Administration Efficiency

InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global AI in Government and Public Services Market - (By Type (Machine Learning, Natural Language Processing (NLP), Computer Vision, Robotic Process Automation (RPA), Expert Systems, Others), By Application, (Administrative Services, Healthcare, Law Enforcement and Public Safety, Transportation and Urban Planning, Social Services, Environmental Management, Tax and Revenue Management, Defense and National Security, Education, Others), By Deployment Mode (Cloud-based, On-premises). By End-User (Government Agencies, Public Services Organizations)), Trends, Industry Competition Analysis, Revenue and Forecast To 2031."

According to the latest research by InsightAce Analytic, the Global AI in Government and Public Services Market is valued at US$ 19.2 Bn in 2023, and it is expected to reach US$ 59.6 Bn by 2031, with a CAGR of 15.8% during the forecast period of 2024-2031.

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The implementation of artificial intelligence (AI) within government and public services is focused on enhancing operational efficiency, effectiveness, and transparency in administrative functions. The increasing demand for improved efficiency is a key driver behind the expansion of AI adoption across the public sector and related government domains. The growing intricacy of public administration has underscored the necessity for AI-driven solutions that alleviate administrative workloads and streamline procedural workflows. By leveraging AI technologies, government agencies can automate routine yet critical tasks such as data entry, document management, and citizen interactions. This automation enables the reallocation of resources toward strategic priorities, thereby boosting overall productivity and the quality of service delivery.

Moreover, AI integration in public services improves community engagement and citizen experience. AI-powered chatbots and virtual assistants offer real-time support for citizen inquiries, enhancing communication responsiveness and satisfaction levels. Nonetheless, market growth is constrained by challenges including data security concerns, substantial implementation costs, and stringent regulatory compliance requirements. Effectively addressing these barriers is crucial to support the widespread adoption of AI in government and public sector operations.

List of Major Players in the AI in Government and Public Services Market:
• IBM Corporation
• Microsoft Corporation
• Google LLC
• Amazon Web Services, Inc.
• Deloitte Touche Tohmatsu Limited
• SAP SE
• Oracle Corporation
• NVIDIA Corporation
• Intel Corporation
• Adobe Inc.
• Palantir Technologies Inc.
• OpenText Corporation
• SAS Institute Inc.
• Cognizant Technology Solutions Corporation
• Genpact Limited
• Infosys Limited
• Capgemini SE
• TCS (Tata Consultancy Services) Limited
• CGI Inc.
• Wipro Limited
• DXC Technology Company
• PwC (PricewaterhouseCoopers) LLP
• KPMG International Cooperative
• HCL Technologies Limited
• Other key players

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Market Dynamics
Drivers:
The global artificial intelligence (AI) market within government and public services is experiencing significant growth driven by the rising demand for improved operational efficiency, transparency, and effectiveness in public sector functions. AI technologies facilitate the automation of routine administrative tasks, streamline workflows, and reduce operational costs, enabling government officials to concentrate on strategic, high-value initiatives. The ability of AI to provide data-driven insights enhances policy formulation, decision-making, and service delivery, resulting in more responsive and citizen-focused governance. Additionally, the increasing deployment of AI in infrastructure management, public safety enhancement, and resource optimization is fueling demand as urban environments become more complex and interconnected.

Challenges:
The expansion of AI adoption in the government and public services sector faces several obstacles. Data privacy and security concerns pose significant challenges, given the sensitive nature of citizen information and the necessity for strict regulatory compliance and strong security protocols. The high costs associated with AI implementation and the complexity of integrating new technologies with legacy systems present further barriers, particularly for smaller government agencies with limited budgets and outdated infrastructure. A shortage of skilled professionals capable of developing, deploying, and managing AI systems also limits market growth. Furthermore, regulatory uncertainties and evolving legal frameworks add complexity to AI adoption, potentially restricting broader market penetration in the foreseeable future.

Regional Trends:
North America is projected to lead the AI market in government and public services in terms of revenue share, supported by its advanced technological infrastructure, significant investments in AI research, and proactive governmental efforts to improve public sector efficiency and transparency. Europe similarly holds a prominent market position, driven by increased public expenditure on digital transformation, regulatory encouragement for AI deployment, and initiatives aimed at enhancing public service delivery and addressing societal challenges through AI-based solutions.

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Recent Developments:
• In April 2024, The Government of Spain, via its Ministry for Digital Transformation, the Civil Service, and IBM, has executed a Memorandum of Understanding (MoU) to enhance collaboration in Artificial Intelligence (AI) and AI supercomputing. This initiative aims to advance the development and practical implementation of open, ethical, and responsible generative AI in Spain, while sharing a vision to establish a premier suite of foundation models, encompassing both large language models (LLMs) and small language models (SLMs), proficient in Spanish and co-official languages.

Segmentation of AI in Government and Public Services Market-
By Type-
• Machine Learning
• Natural Language Processing (NLP)
• Computer Vision
• Robotic Process Automation (RPA)
• Expert Systems
• Others
By Application-
• Administrative Services
• Healthcare
• Law Enforcement and Public Safety
• Transportation and Urban Planning
• Social Services
• Environmental Management
• Tax and Revenue Management
• Defense and National Security
• Education
• Others
By Deployment Mode-
• Cloud-based
• On-premises
By End-User-
• Government Agencies
• Public Services Organizations
By Region-
North America-
• The US
• Canada
• Mexico
Europe-
• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe
Asia-Pacific-
• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific
Latin America-
• Brazil
• Argentina
• Rest of Latin America
Middle East & Africa-
• GCC Countries
• South Africa
• Rest of the Middle East and Africa

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InsightAce Analytic is a market research and consulting firm that enables clients to make strategic decisions. Our qualitative and quantitative market intelligence solutions inform the need for market and competitive intelligence to expand businesses. We help clients gain competitive advantage by identifying untapped markets, exploring new and competing technologies, segmenting potential markets and repositioning products. Our expertise is in providing syndicated and custom market intelligence reports with an in-depth analysis with key market insights in a timely and cost-effective manner.

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This release was published on openPR.