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Why Generative AI Isn’t Transforming Government (Yet) — and What We Can Do About It

Article by Tiago C. Peixoto: “A few weeks ago, I reached out to a handful of seasoned digital services practitioners, NGOs, and philanthropies with a simple question: Where are the compelling generative AI (GenAI) use cases in public-sector workflows? I wasn’t looking for better search or smarter chatbots. I wanted examples of automation of real public workflows – something genuinely interesting and working. The responses, though numerous, were underwhelming.

That question has gained importance amid a growing number of reports forecasting AI’s transformative impact on government. The Alan Turing Institute, for instance, published a rigorous study estimating the potential of AI to help automate over 140 million government transactions in the UK. The Tony Blair Institute also weighed in, suggesting that a substantive portion of public-sector work could be automated. While the report helped bring welcome attention to the issue, its use of GPT-4 to assess task automatability has sparked a healthy discussion about how best to evaluate feasibility. Like other studies in this area, both reports highlight potential – but stop short of demonstrating real service automation.

Without testing technologies in real service environments – where workflows, incentives, and institutional constraints shape outcomes – and grounding each pilot in clear efficiency or well-being metrics, estimates risk becoming abstractions that underestimate feasibility.

This pattern aligns with what Arvind Narayanan and Sayash Kapoor argue in “AI as Normal Technology:” the impact of AI is realized only when methods translate into applications and diffuse through real-world systems. My own review, admittedly non-representative, confirms their call for more empirical work on the innovation-diffusion lag.

In the public sector, the gap between capability and impact is not only wide but also structural…(More)”

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