Nine in ten public sector organizations to focus on agentic AI in the next 2-3 years, but data readiness is still a challenge

Core Insights - The Capgemini Research Institute report indicates that two-thirds of public sector organizations are currently exploring or using generative AI initiatives to enhance public services, with 90% planning to adopt agentic AI within the next 2-3 years [2][3] - Despite the enthusiasm for AI, public sector organizations face significant challenges related to data readiness, trust, compliance, and data management, which hinder their ability to fully leverage AI technologies [2][5][6] AI Adoption and Expectations - Public sector organizations have high expectations for AI, with 39% planning to evaluate agentic AI feasibility, 45% intending to explore pilot programs, and 6% aiming to scale existing initiatives within the next 2-3 years [3] - The report highlights that 64% of organizations have progressed to pilot or scaled deployments, with higher adoption rates in defense (82%), healthcare (75%), and security (70%) sectors [3] Data Readiness Challenges - A significant barrier to AI adoption is data security concerns (79%) and limited trust in AI outputs (74%), with only 36% of organizations in the EU prepared to comply with the EU AI Act [5] - Only 12% of public sector organizations consider themselves very mature in activating data, and just 21% have the necessary data to train and fine-tune AI models [6][8] Data Sharing and Governance - Data sharing is essential for AI adoption, yet 65% of organizations are still in the planning or pilot stages of data sharing initiatives, complicating the deployment of AI [7] - The rise of Chief Data Officers (CDOs) and Chief AI Officers (CAIOs) reflects the growing importance of data governance, with 64% of organizations having a CDO and 27% appointing a CAIO [9] Research Methodology - The report is based on a survey conducted by the Capgemini Research Institute involving 350 public sector organizations across various segments and levels of government, providing a comprehensive view of AI adoption in the public sector [10]