Industry

Governments turn to AI to speed up slow public administrations

Faced with rising spending but slowing services, several countries and experts see artificial intelligence (AI) as a tool to improve administrative efficiency.

Governments turn to AI to speed up slow public administrations

In many developed countries public spending has risen while some core services and projects slow down. Administrative procedures are often lengthy, investments are delayed, and voters increasingly express dissatisfaction — a dynamic that contributed to declines in support for governing parties in 2024. Many experts see artificial intelligence (AI) as a potential tool to restore administrative efficiency, though they warn it is not a universal remedy.

International examples: delays and digital advances

The article cites several examples of delayed public projects. In the United States, a 42 billion dollar rural broadband program approved in 2021 produced its first results only after four and a half years. Plans to build out electric vehicle charging networks have lagged, and California’s high-speed rail remains only partially built nearly twenty years after approval. Similar slowdowns affect European countries in areas such as migration management, building permits, and tax administration.

By contrast, Ukraine has pursued a different path: despite war, its digital public services have advanced. The Diia application now functions as a near-digital state platform where Ukrainians can pay taxes, request official documents, start businesses, or apply for benefits. The system was recently expanded with AI features that further accelerate administrative processing.

Hungary’s move: joining the EU AI Gigafactory

The Hungarian government announced that Hungary is joining the European Union AI Gigafactory program. The government plans a long-term contribution of 500 million euros to the project, which aims to help European actors — including Hungarian companies, researchers and public institutions — gain significant computing capacity and reduce the gap with the United States and China in AI infrastructure.

What AI can do in the public sector

AI deployments in public administration go beyond visible chatbots. The technology can automatically check permit compliance against rules, generate clear explanations of tax obligations for citizens, or process cases in minutes that currently take weeks or months. The intended role of AI is to eliminate unnecessary administration while leaving final decisions to human officials; AI would assist by applying rules quickly and consistently.

Risks and organisational challenges

Experts caution that AI is not a panacea. If applied to flawed processes, AI can amplify existing problems. Dr. Farkas Dávid, data scientist and co-founder of Principle Zero, noted that only a small portion of an AI transition is a technical issue; the larger share involves people, organisational change and strategy. Successful adoption therefore requires process redesign, training, and transparent decision-making frameworks. Aczél Petra, communication researcher and professor at Széchenyi István Egyetem, regularly contributes to the related professional discussion as a guest on the podcast cited in the article.

Why this matters for democracies

The article argues the stakes go beyond speedier transactions: if democratic states cannot demonstrate functional governance, voters may turn to political forces offering radical solutions. Historically, societies often prioritise systems that deliver tangible results, so restoring administrative effectiveness is a strategic imperative.

Conclusion

AI offers promising ways to speed up and standardise public administration, illustrated by Hungary’s planned investment in the EU AI Gigafactory and Ukraine’s AI-augmented Diia platform. However, technology alone will not solve structural problems: careful organisational reform, proper implementation and continued human oversight are necessary to realise the potential benefits.