KPMG has released its report, Unlocking Government’s Technology Future, revealing that governments worldwide are making notable progress in digital transformation, yet significant steps are still required to meet citizens digital expectations. The report, based on a survey of 118 senior public sector technology executives across Europe, the Middle East, Africa, Asia-Pacific, and the Americas, highlights critical opportunities for governments to modernize, adopt cloud technologies, and embrace artificial intelligence (AI).
The report shows that 85% of public sector respondents are prioritizing emerging technologies over legacy systems, demonstrating a commitment to innovation. However, many government leaders still find it challenging to keep pace with rapid technological change. Despite these hurdles, 84% of respondents report that adopting modern delivery methods has created measurable value for their organizations.
Commenting on the report, Ismail Alani, Partner and Head of Government & Public Sector at KPMG in Saudi Arabia and Levant, said: “Governments are making progress, but they need to accelerate to meet the growing demands of citizens. The pace of change must increase to realize the full potential of their digital transformation efforts.”
Cloud adoption plays a critical role in these modernization efforts, with 82% of public sector executives view Everything-as-a-Service (XaaS) as essential to their transformation. Additionally, 74% of respondents are aligning their technology investments with Environmental, Social, and Governance (ESG) goals.
“In today’s world, the location of both the beneficiary and a public service provider is less relevant for a digital user, and for both parties, centralizing digital policies and strategies at a national level has many merits. That said, protecting constituent data through secure identification authentication and data use legislation will be necessary to build trust in such new digital government architecture,” Alani added.
One example of digital progress is Saudi Arabia’s achievement in e-government development, highlighted in the United Nations’ E-Government Development Index (EGDI), where the Kingdom has made a significant leap from 31st place in 2022 to 6th globally in 2024.
Meanwhile, AI is also gaining momentum, with 45% of respondents experimenting with AI in controlled environments and two-thirds expecting to invest in AI and automation within the coming year. Although 33% of citizens currently express confidence in their governments’ ability to develop AI solutions that serve the public interest, this presents a valuable opportunity to strengthen trust as AI initiatives advance.
Robert Ptaszynski, Partner and Head of Digital & Innovation at KPMG in Saudi Arabia and Levant, highlighted the transformative power of emerging technologies for goverments: “We are facing two transformative waves—cloud and generative AI. Together, they are not just changing how governments operate, but also how they deliver citizen-focused services. The challenge now is for governments to embrace this shift and build the frameworks that ensure responsible AI use, while also enabling innovation.”
As governments strive to deliver seamless services, they are increasingly focusing on citizen needs. The report reveals that 74% of government technology executives say customer feedback influences their investment decisions, and 82% are confident in using customer-centric metrics to measure the value of their digital initiatives.
However, a shortage of talent remains a significant barrier to progress. Two-thirds of government leaders report having innovative ideas for digital transformation but lack the skilled workforce needed to implement them. With 73% of leaders prioritizing the development of digital skills, upskilling government employees will be crucial to overcoming this talent gap.
The Global Tech Report 2024 offers actionable insights for governments to accelerate their digital transformation journeys. By embracing emerging technologies, prioritizing cloud adoption, and fostering a citizen-centric approach, governments can achieve long-term success and meet the evolving needs of their citizens.