Consulting Report
17 Jun 2025

How can the transformative power of data and AI drive greater public value?

In partnership with EY (Ernst & Young)

Governments worldwide face a critical inflection point as they confront a convergence of challenges: fiscal constraints, workforce pressures and lagging productivity alongside complex geopolitical and societal issues and eroding levels of trust, all while people’s expectations and demands on them grow.

Our detailed research across 14 countries, conducted in partnership with EY, shows that data and AI technologies offer precisely the capabilities needed to address these challenges. They aren’t just tools for efficiency — they represent a fundamental shift in how governments can deliver public value in the 21st century.

The cost of inaction in adopting data and AI technologies is increasing daily. Organizations delaying implementation risk widening service gaps, eroding public trust, undermining fiscal sustainability and, ultimately, compromising their core missions. Meanwhile, as our research reveals, pioneers are already capturing significant benefits that enhance service delivery and operational efficiency.

This paper represents the first in a two-part series. In this initial report, we focus primarily on the research findings themselves — examining the state of government AI adoption, quantifying the implementation gap, identifying the challenges organizations face and introducing a framework for implementing AI, drawing on insights from government organizations that are leading the field. Our second report will build on these insights to deliver detailed, practical guidance on how organizations can apply this framework to advance their own data and AI journeys.

Who should read the report?

This study equips government leaders with actionable insights for navigating the complex AI landscape. Organizational leaders will find a framework for strategic decision-making. Chief digital, information, data and AI officers will gain practical implementation roadmaps and strategies to overcome common barriers. Talent leaders will discover approaches for workforce transformation, learning and development, and building organizational readiness. The broader leadership will benefit from evidence-based perspectives on how leading government organizations leverage these technologies to deliver measurable improvements in service quality, operational efficiency and public value.

We look forward to sharing the second report with you in the third quarter of 2025.

This report was brought to you by the Consulting team.
Oxford Economics specialises in forecasting, economic impact analysis, and evidence-based thought leadership. Our economists and analysts draw from a rich database of figures and analysis on 200 countries, 100 sectors, and 7,000 cities and regions.
The experts behind the research
  • John Reiners

    John Reiners

    Managing Editor, EMEA, Thought Leadership
    John Reiners

    Managing Editor, EMEA, Thought Leadership

    John oversees Thought Leadership projects with EMEA-based clients. He works across business sectors and disciplines, but specialises in issues relating to strategy and business operations, such as sustainability, digital transformation, employment and skills, finance, and performance management. He has directed the Thought Leadership contribution on some of Oxford Economics’ largest and most complex research programmes, for global consultancies and corporates, including Accenture, the Adecco Group, Cognizant, EY, Fujitsu and YouTube. Often this is in collaboration with his economist colleagues to blend qualitative and quantitative analysis, and to explore the impact of corporate actions at a business, industry and economy level.

    John joined Oxford Economics in 2014, after 25 years as a Financial Controller, financial management consultant and, most recently, a thought leadership expert for IBM’s Institute for Business Value, focused on global public sector issues. John then worked on the independent Digital Government Review as input to the UK General Election. He is an Economics graduate from Sussex University and a Chartered Management Accountant (ACMA).

  • Jamie Snowdon

    Jamie Snowdon

    Senior Research Analyst, Thought Leadership
    Jamie Snowdon

    Senior Research Analyst, Thought Leadership

    Jamie Snowdon oversees data capture and analysis for Oxford Economics’ Thought Leadership group. Leading a dedicated team, Jamie ensures the provision of robust data input for evidence-based thought leadership programmes, delivering in-depth data analysis, impactful visualisations and intuitive analytical tools.

    Jamie joined Oxford Economics in 2022, bringing over 25 years of experience in the IT and Business Services industry. During his career, he has held senior research and management roles at leading technology research companies, including PAC, IDC, HFS Research and Market Prescience. Jamie’s analyst career has largely been spent conducting data analysis, including developing market size/forecast models, conducting quantitative/qualitative survey analysis and performing competitive analysis.

    Jamie holds bachelor's degrees in Computer Science and Law.

  • Alice Pickthall

    Alice Pickthall

    Senior Research Manager, Thought Leadership
  • Maximilian Douglas Carl Vickers

    Maximilian Douglas Carl Vickers

    Research Manager
    Maximilian Douglas Carl Vickers

    Research Manager

    Max is based in the London office and supports the Thought Leadership team across business sectors and disciplines. Max graduated from the University of Warwick with a BA in Politics, International Studies and Quantitative Methods and an MSc in Behavioural and Data Science.

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