‘Services Must Be Flexible’: How Governments Can Use Artificial Intelligence
The HSE International Laboratory for Digital Transformation in Public Administration held a roundtable titled ‘Artificial Intelligence in Public Administration: Current Trends.’ Scholars from Israel, China, and Russia discussed which public services AI can enhance and what key factors must be considered when adopting new technologies.
Eran Vigoda-Gadot
Artificial intelligence is now capable of performing many tasks traditionally handled by humans, noted Prof. Eran Vigoda-Gadot from the Division of Public Administration and Policy at the University of Haifa in his talk on the potential of AI. He shared some global insights into the use of AI: ‘The global AI market was valued at approximately $150.2 billion in 2024 and is projected to reach $407 billion by 2027, with an annual growth rate of over 36%,’ he noted. And this is not the limit for AI development.
According to expert forecasts, AI could reach a market value of $1.8 trillion by 2030. Already, nearly 77% of devices utilise AI in one form or another—from voice assistants like Siri to content recommendations on social media platforms. AI is making a real breakthrough in voice search, with over 40% of mobile device users already taking advantage of this feature, said Eran Vigoda-Gadot.
Looking ahead, AI is expected to automate up to 70% of routine tasks currently carried out by people. However, this is also likely to create new job opportunities for those involved in managing and developing AI systems. ‘AI is hard to avoid!’ declared Professor Eran Vigoda-Gadot, encouraging its use in research. However, he added, it is crucial to pose the right questions and select appropriate tools to make effective use of AI.
Chen Tao
Prof. Chen Tao from the College of Public Administration at Huazhong University of Science and Technology noted a growing interest in AI and its application in the public sector. The implementation of AI has led to improvements in the quality of public services. For example, AI helps accelerate administrative processes. ‘AI-powered chatbots respond to queries in real time and provide immediate feedback, thereby bringing governments closer to the public,’ said Prof. Chen. Moreover, the use of big data enables the public sector to make more balanced and accurate decisions.
Chinese AI labs have reached the level of their American counterparts, Prof. Chen stated. Significant progress has been observed with the release of DeepSeek, a Chinese neural network based on an open-source large language model. According to him, modern Chinese AI models now demonstrate built-in logical reasoning and produce more coherent responses.
The open-source nature of DeepSeek offers several advantages, including reduced development costs and improved energy efficiency compared to its counterparts. Professor Chen Tao emphasised the significance of this, noting that the high energy consumption of many current AI models contributes to increased carbon emissions and has a negative environmental impact. In contrast, DeepSeek represents a more environmentally sustainable approach to AI development.
Evgeny Styrin
Evgeny Styrin, Head of the HSE International Laboratory for Digital Transformation in Public Administration, stressed the importance of a value-based approach when implementing new technologies. He used banking chatbots as an example. While digital channels offer convenience for resolving customer issues, there is also a downside. In the banking sector, the frustration caused by time-consuming interactions with chatbots can outweigh the benefits of remote service. In many cases, personal communication and an apology from a bank employee are more effective in resolving conflicts than similar actions carried out by a machine.
According to Evgeny Styrin, a value-based approach should take into account the generational characteristics of users—including generations X, Y (millennials), Z, and Alpha—when developing digital banking services. ‘Different generations have different preferences. That is why services must be flexible,’ he explained.
This perspective is supported by research from Siqi Li, a PhD student at the School of Public Administration at Huazhong University of Science and Technology. She noted that AI technologies have been increasingly adopted in the public sector in recent years, particularly in the shift from human interaction to robot-assisted communication. However, surveys of citizens who have engaged with both human staff and service robots at Chinese public service centres revealed a clear trend: in some cases, people are willing to queue in order to receive standard services from a human rather than a robot.
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