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HOME/DISCOVER/PUBLIC SECTOR
0+ solutions analyzed|33 industries|Updated weekly
01

AI Capability Investment Map

Where public sector companies are investing

+Click any domain below to explore specific AI solutions and implementation guides

Investment Priorities

How public sector companies distribute AI spend across capability types

Perception0%
Low

AI that sees, hears, and reads. Extracting meaning from documents, images, audio, and video.

Reasoning0%
Low

AI that thinks and decides. Analyzing data, making predictions, and drawing conclusions.

Generation0%
Low

AI that creates. Producing text, images, code, and other content from prompts.

Optimization0%
Low

AI that improves. Finding the best solutions from many possibilities.

Agentic0%
Emerging

AI that acts. Autonomous systems that plan, use tools, and complete multi-step tasks.

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EMERGING MARKET45/100

From 6-month benefit applications to same-day decisions. AI is rebuilding citizen trust.

Citizens expect Amazon-speed service from government. Agencies still processing paper forms are driving talent away and eroding public trust.

Cost of Inaction

Every year without AI modernization costs billions in fraud, waste, and the best public servants leaving for private sector.

!

Why AI Now

The burning platform for public sector

Government AI spending: $25B by 2028

Fraud detection and citizen services lead investment

Gartner Government IT Forecast
IRS AI: $4B additional revenue recovered

AI-powered fraud detection transforms tax collection

IRS Modernization Report
70% of government processes automatable

Routine citizen interactions prime for AI transformation

McKinsey Public Sector Study
03

Top AI Approaches

Most adopted patterns in public sector

Each approach has specific strengths. Understanding when to use (and when not to use) each pattern is critical for successful implementation.

04

Recommended Solutions

Top-rated for public sector

Each solution includes implementation guides, cost analysis, and real-world examples. Click to explore.

05

Regulatory Landscape

Key compliance considerations for AI in public sector

Public sector AI faces the most stringent regulatory requirements including Executive Orders, OMB guidance, FedRAMP, and algorithmic accountability laws. Procurement cycles are long but requirements are becoming standardized.

Executive Order 14110

HIGH

Federal AI governance requirements for safety and rights protection

Timeline Impact:6-12 months for compliance frameworks

OMB AI Memoranda

HIGH

Specific implementation requirements for federal AI systems

Timeline Impact:Ongoing compliance cycles

FedRAMP AI Extensions

HIGH

Cloud security requirements for AI systems handling government data

Timeline Impact:12-18 months for authorization
06

AI Graveyard

Learn from others' failures so you don't repeat them

Michigan Unemployment AI Fraud

2015$100M+ in wrongful accusations
×

MiDAS system automatically accused 40,000 residents of fraud with 93% later found wrongful. No human review of AI decisions.

Key Lesson

Government AI must have human oversight, especially for adverse decisions

UK A-Level Algorithm Crisis

2020Results invalidated nationwide
×

AI system for exam grading systematically disadvantaged students from lower-performing schools. Bias in training data perpetuated inequality.

Key Lesson

AI in high-stakes public decisions requires extensive bias testing and appeals process

Market Context

Public sector AI is accelerating post-pandemic but faces unique procurement and accountability requirements. Successful implementations require extensive stakeholder engagement and algorithmic transparency.

02

Transformation Landscape

How public sector is being transformed by AI

25 solutions analyzed for business model transformation patterns

Dominant Transformation Patterns

Transformation Stage Distribution

Pre0
Early18
Mid7
Late0
Complete0

Avg Volume Automated

42%

Avg Value Automated

30%

Top Transforming Solutions

AI Workforce Enablement

Expert → AIEarly
33%automated

Public Sector Decision Support

Silo → IntEarly
44%automated

Smart City Service Orchestration

Silo → IntEarly
22%automated

Digital Public Service Automation

Silo → IntMid
40%automated

Predictive Crime Hotspot Analysis

React → PredMid
30%automated

Predictive Policing

React → PredMid
40%automated
View all 25 solutions with transformation data