Better data governance fuels AI-driven public services
By Piret Hirv, Head of Data Management Competence Centre
In today’s digitally driven world, artificial intelligence (AI) is becoming a key driver of innovation, reshaping how public services operate and unlocking remarkable economic opportunities. Governments worldwide face a critical question: how can data governance empower AI and drive public sector innovation?
Proficient data governance is often an overlooked foundation of every successful AI-integrated system. Without high-calibre, accessible and carefully managed data, the transformative potential of AI remains largely untapped. According to McKinsey, global investments in AI exceeded £120 billion in 2023 and are expected to surpass £150 billion by 2025. However, the efficacy of these financial commitments is important in establishing robust data frameworks that guarantee data accuracy, security and interoperability. Governments across the globe face a critical question: how can they leverage data governance to empower AI and boost innovation within the public sector?
Finland offers a compelling example through its Age of Artificial Intelligence Report. It highlights its strengths in high-quality data availability, a tech-friendly population and unique healthcare and educational data systems. These attributes make Finland a global leader in leveraging AI. The report estimates that AI adoption could result in a 3% annual GDP growth per capita and up to 5% higher net employment by 2030, demonstrating the transformative economic potential of aligning AI with strong data governance practices.
Data-sharing as one of the enablers of innovation
The value of data governance lies in its power to unlock data’s full potential by improving accessibility and enabling seamless sharing across sectors and countries. The Data Governance Act, introduced by the European Commission, provides a critical framework for building trust in data-sharing, fostering interoperability, and promoting data availability for public and private sector use.
The Data Governance Act highlights how robust data management drives the development of innovative products and services, improves operational efficiency and promotes sustainability for industries. In healthcare, for example, improved data accessibility can personalise treatment plans, tackle rare medical conditions and generate an estimated €120 billion in annual savings across the European Union. Furthermore, it enhances the ability to react to worldwide crises.
In public administration and related industries, generative AI has the potential to significantly boost productivity, with a projected economic impact of $480 billion. This transformative potential is predicated upon the availability of superior, rigorously curated data to educate and refine artificial intelligence systems proficiently.
Additionally, reliable and well-governed data supports evidence-based policy-making, improves transparency and enables governments to deliver services more effectively.
Priority actions for governments
To unlock AI’s full potential, governments must take decisive steps to address critical challenges in data governance and infrastructure.
- Develop comprehensive national frameworks:
- Harmonise data management methodologies across agencies.
- Adopt global standards for interoperability.
- Foster collaboration through public-private partnerships.
- Invest in scalable and secure infrastructure: Establish robust systems like cloud storage and data lakes to support AI applications and prevent adoption bottlenecks.
- Build an AI-ready workforce: Implement data analysis, machine learning, and governance training programmes to create AI-ready public services.
- Facilitate open data initiatives: Promote the release of anonymised datasets to the private sector to encourage innovation, support startups, and create new business opportunities.
- Ensure ethical and secure AI practices: Adopt transparent data protection policies to build public trust and develop ethical AI guidelines to mitigate biases, uphold inclusivity and protect individual rights.
These practical steps will enable public services to harness AI’s transformative power, fostering economic growth, driving innovation and improving quality of life. Effective data governance is not just a requirement but a strategic enabler for a brighter, AI-driven future.