Report: How the public sector can help drive AI innovation
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A new report offers strategies for government leaders to encourage AI innovation that prepares their communities for an AI-ready future.
As the world heads toward a digital future, the public sector plays a critical role in preparing government and business organizations to adopt and implement artificial intelligence through strategic investments, partnerships and workforce development efforts, a new report finds.
When it comes to keeping pace with the advancements in AI, governments are “a little to a moderate amount behind,” said Tejus Kothari, managing director and partner at the Boston Consulting Group. But AI is not “10 or five years away, [its] impacts are starting to happen now,” affecting how government agencies and businesses operate already, he said.
A new report from BCG offers strategies for public sector leaders to enable AI innovation, particularly in the private sector, to build an AI-ready environment in their states.
“Public sector leaders who act now will not only strengthen their state’s economies — they’ll help ensure that AI becomes a driver of prosperity for the constituents they serve,” the report stated.
One way government leaders can support AI innovation is to target small- to medium-sized businesses, which are more likely to lack the time and financial resources to leverage the technology, according to the report. As a result, these organizations are at risk of lagging behind in AI adoption.
Small enterprises make up about 40% of the nation’s gross domestic product, and the barriers they face to implementing AI could stunt statewide economic growth if they cannot leverage tech that “can unlock real business value and productivity gains,” Kothari said.
Officials should also consider offering programs or networks that help small businesses learn more about AI and gain confidence in using the tech, according to the report.
New York Gov. Kathy Hochul, for example, announced an initiative to support the growth of small businesses earlier this year that includes AI technical assistance for such organizations. Under the initiative, the Empire State Development — New York’s economic development agency — and the state’s network of entrepreneurship assistance centers will offer AI training to entrepreneurs and small businesses across the state.
Pilot programs are another approach governments can take to help encourage AI development in the private sector, according to the report. Such programs give businesses the opportunity to test and refine their AI products, while also helping governments leverage tech to address their own challenges.
In San Jose, California, city officials partnered with local tech startups to tackle civic problems with AI solutions under a grant program in August. One of the awardees, for instance, is leveraging AI in Medicaid systems to automatically identify and contact pregnant individuals who are at risk of developing complications to link with them additional support services.
As public leaders continue to prepare the current industry for AI, it’s also critical that they build pathways for the future workforce to keep up with AI advancements, Kothari said.
“Workforce readiness is the foundation of any AI strategy,” the report stated. “Governments that mobilize their populations with training can expect to see the adoption of emerging technologies move forward in complementary, adaptive ways.”
Government leaders can use schools and higher-education institutions to prepare future employees to enter the workforce with a fundamental understanding of AI that will help drive innovation across sectors, Kothari said.
At least 11 states require high school students to complete a computer science course to graduate, as policymakers increasingly recognize the growing role of AI in society, he explained.
Kothari also noted movement among higher-education institutions to prioritize AI curriculum. Ohio State University, for example, announced in June that it would start incorporating AI into the university’s undergraduate curriculum to ensure students build fluency in the tech and how it can impact their fields of study.
Ultimately, “AI has already and will continue to impact the economy” and the public sector “can and should take a more proactive role in steering that,” Kothari said.