The AI in Government and Public Services Market Size is valued at USD 19.2 billion in 2023 and is predicted to reach USD 59.6 billion by the year 2031 at a 15.8% CAGR during the forecast period for 2024-2031.
Artificial Intelligence (AI) in government and public services is revolutionizing how governments operate and deliver services to citizens. AI can streamline administrative tasks, enhance decision-making through data analysis, and improve resource allocation. In public services, AI-powered chatbots and virtual assistants enhance citizen engagement by providing instant responses to queries and delivering services more efficiently. AI is also used in areas such as public safety, traffic management, and infrastructure maintenance, where predictive analytics help anticipate issues and optimize operations. Additionally, AI can be employed for fraud detection, cybersecurity, and policy planning, improving transparency and effectiveness in governance. Overall, AI fosters smarter, more efficient public services and governance, benefiting both citizens and governments.
Moreover, the growth of AI in government and public services in this sector is being driven by government initiatives and investments in digital transformation. In addition, the market is anticipated to be propelled by increased government investments in research and development to optimize better service processes.
However, the market growth is hindered by obstacles such as data privacy worries, expensive implementation expenses, a shortage of trained AI experts, and problems with regulation and compliance. Several variables can hinder adoption in this market. Global markets expanded during the coming years due to technological developments, widespread adoption of digital platforms, and enhanced government operations cybersecurity by detecting and responding to threats.
Competitive Landscape
Some Major Key Players In The AI in Government and Public Services Market:
- IBM Corporation
- Microsoft Corporation
- Google LLC
- Amazon Web Services, Inc.
- Accenture PLC
- 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 Market Players
Market Segmentation:
The AI in the government and public services market is segmented as per the type, application, deployment mode, and end-user. Based on type, the market is segmented into machine learning, computer vision, natural language processing (NLP), robotic process automation (RPA), expert systems, and others. By application, the market is segmented into 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, and others. According to the deployment mode, the market is segmented into cloud-based and on-premises. By end-users, the market is segmented into government agencies and public services organizations.
Based On The Type, The Robotic Process Automation Segment Is Accounted As A Major Contributor To AI In The Government And Public Services Market.
The robotic process automation AI in the government and public services market is expected to hold a major global market share in 2023 because it can automate mundane jobs, which in turn improves efficiency and conserves a lot of money. Reduced human error, streamlined administrative processes, and improved service delivery are all benefits of robotic process automation. Additionally, government processes are being modernized with the help of robotic process automation, which is driven by the need to handle increasing data quantities, the requirement for digital transformation, and the industry's overall market growth.
Government Agencies Segment To Witness Growth At A Rapid Rate.
The government agencies category is projected to grow rapidly in the global AI in the government and public services market. Better citizen services, data-driven decision-making, and efficiency are becoming more important. With the help of AI, operational capabilities are improved, everyday tasks are automated, and predictive analytics are made possible. The growth of this market segment is also being propelled by government programs that encourage digital transformation and investments in artificial intelligence technologies.
In The Region, The North American AI In Government And Public Services Market Holds A Significant Revenue Share.
The North American AI in the government and public services market is expected to document the highest market revenue share. This is because there is a strong emphasis on innovation and digital transformation efforts, a well-developed technical infrastructure, substantial government funding for AI, and favorable regulations. In addition, Europe is likely to grow rapidly in the AI in government and public services market because the use of artificial intelligence to improve the effectiveness of public services, rising government programs, growing funding levels, and the trend toward digitalization will boost the market's growth.
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.
AI in Government and Public Services Market Report Scope
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 19.2 Bn |
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Revenue Forecast In 2031 |
USD 59.6 Bn |
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Growth Rate CAGR |
CAGR of 15.8% from 2024 to 2031 |
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Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
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Historic Year |
2019 to 2023 |
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Forecast Year |
2024-2031 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments Covered |
By Type, Application, End-User, Deployment Mode |
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Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
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Competitive Landscape |
IBM Corporation, Microsoft Corporation, Amazon Web Services (AWS), Google LLC, Accenture PLC, Palantir Technologies Inc., SAS Institute Inc., Oracle Corporation Com, Inc., Deloitte Touche Tohmatsu Limited, SAP SE, NVIDIA Corporation, Other Prominent Players. |
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Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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