Digitalisation in the public sector

On Wednesday 23 November 2022, the Policy Learning Platform held a webinar on the topic of GovTech and the digitalisation of the public sector. There are increasing efforts for governments to digitalise public services to achieve digital and green twin transitions.

The Digital Europe Programme is the EU funding programme focused on bringing digital technology to businesses, citizens, and public administrations. Digital services or e-services are seen as crucial to improve public services and engage civil society and address major societal challenges or missions defined by the European Commission.

The European Commission has launched several initiatives to support governments to embrace GovTech programmes to digitalise public services. Such as the European GovTech Incubator which is being developed to enable cross-border and cross-domain experimentation.

The concept of ‘GovTech’ refers principally to the use of emerging technologies and digital products and services by the government sourced from start-ups and SMEs—instead of relying on large system integrators (read GovTech Practices in the EU and Scoping GovTech dynamics in the EU).

GovTech shares the following three common elements:

• the public sector engages with start-ups and SMEs to procure innovative technology solutions
• for the provision of tech-based products and services
• in order to innovate and improve public services and address major challenges

European governments are increasingly establishing GovTech programmes with the aim to deliver better digital public services, modernize legacy IT infrastructures, and find solutions to some pressing societal challenges.  

Digital innovation hubs and digital demonstrators/testbeds are part of the European competitiveness and innovation policies for at least a decade, also including further concepts such as learning factories or technology platforms.

Those concepts have in common that they aim for accelerating the uptake of new technologies (e.g. artificial intelligence, blockchain, big data, virtual and augmented reality, etc.) in the processes, products, and services of European SMEs, helping them to be more innovative and more competitive on the global level.

With the new programming period 2021-2027, the overall concept of Digital Innovation Hubs is gaining even more momentum on the European level with a prominent place in the new industrial strategy for a sustainable and digital Europe. This is mirrored in national and regional policies, and quite obviously also in the activities of Interreg Europe projects.

This policy brief aims to provide an overview of the relevant good practices and policies brought forward by the projects and highlight some of their specificities, which might make them relevant for learning and uptake purposes in other regions.

Explore the policy brief and get inspired!

The Policy Learning Platform organised an online peer review on the topic of ‘implementing a digital transformation strategy’ with Krapina-Zagorje County, Croatia, on 6-7 July 2021.

Alongside Arnault Morisson and Marc Pattinson, our research and innovation experts, peers from different EU countries were invited and participated to the peer review.

The host’s main policy challenges and peers’ suggestions can be found in the peer review in the follow-up report.

Peers from across Europe

The following five talented peers shared with the host region their expertise and suggestions for implementing a successful digital transformation strategy.

• Harri Kuusela, Regional Council of Päijät-Häme (Finland),
• Jorge Muyo, Regional Government of Cantabria, Cantabria (Spain),
• Mariana Nagy, Tehimpuls Association, Regional Centre for Innovation and Technology Transfer (Romania),
• May-Britt Roald, Møre and Romsdal County, Møre and Romsdal (Norway),
• Peter Grant, WSX Enterprise Hampshire (UK).

Policy recommendations

The host region, Krapina-Zagorje County, is currently designing its digital transformation strategy and wanted to learn how other public bodies have incorporated digital technologies into their services and operations, are offering fully electronic, online services to citizens as well as facilitating, and supporting entrepreneurship.

Building on two days of intense and very rich exchanges with the host region, the peers gave relevant and actionable suggestions on the main policy challenges such as:

• For implementing the digital transformation strategy, the County must led a bottom-up approach (as the owner of the DX strategy and resource holder) and the Zagorje Development Agency (as a coordinator of involved stakeholders) must focus on strategic objectives. The focus should be on efficiency, user benefits, and recognizing user feedback. Also, different audiences (user demographics) should be considered when designing services.
• For targeting the public sector, the County staff who will work with providing the services must be versed in using the necessary IT infrastructure. Trainings (which could be based on skill assessments) for digital skill improvement must be planned and implemented ahead of major DX rollouts in order to maximize efficiency and clarity of use for both County staff and end users.
• For targeting start-ups and entrepreneurs, the County must develop a clear role (e.g., proactivity, enabling, training) for the public sector in developing an entrepreneurship culture (targeting entrepreneurs in general, not only start-ups) for all ages. Synergize DX implementation with existing plans, digital innovation hubs, and possible EU funding opportunities (such as the Digital Europe 2021-2027 programme).

Discover more insights and suggestions from the peer review in the follow-up report.

Photo credit: DragonImages on Envato elements

With the recent adoption of the EU AI Act, the European Union has taken a monumental step towards shaping the future of our continent. This European groundbreaking regulation establishes a solid foundation for the responsible and trustworthy adoption of AI systems. For local authorities, it represents a powerful tool to spur innovation, while keeping their territories and citizens at the centre of their policy action.

Are policy makers ready to take up the opportunity?

Allegedly, the answer to this question could be a simple “no”. In many contexts, the perception of AI can be rather negative: it’s “threatening”, “intrusive”, “unreliable”…the feeling of mistrust can be experienced by both citizens and public servants. This is the first challenge for local governments: opening up to the potential of an unparalleled and life-changing technology requires overcoming negative perceptions first, including among civil servants within their own organisations.

In policy making, tangible risks are also to be taken into account: privacy violation risks through potential data misuse; surveillance risks due to over-monitoring that may infringe on freedoms; AI could also entail decision-making biases leading to discriminatory practices in local governments, thus reinforcing existing inequalities. Finally, public bodies are concerned by the risk of supporting AI investments resulting in market failures bringing negative net social benefits and leading to social inequalities.

Understanding the EU AI Act

A close look at the AI Act shows that there are responses to the above potential concerns.

First, the Act provides clear guidelines prioritising transparency, accountability, and human-centric AI applications. All AI technologies must be developed and deployed in a manner that respects democratic principles and protects the rights of citizens.

Second, the Act classifies AI systems into four categories, under a risk-based approach: unacceptable risk, high risk, limited risk, and minimal risk. For instance, for high-risk environments, such as critical infrastructures, healthcare, and law enforcement, AI systems will be subject to strict conformity assessments, ensuring that they meet the highest standards of safety and ethical considerations.

Third, the Act provides a harmonised regulatory framework. Standardised rules create a fair landscape, encouraging public authorities to invest in AI technologies without the fear of regulatory fragmentation. This creates a conducive environment for the development of cutting-edge solutions that address specific local challenges and improve public services.

Watch our webinar on AI for local authorities and policymakers featuring  Guido Rink from the European Committee of the Regions and deputy mayor of Emmen

The first step

Investing in digital literacy and associated skills development is the first step to be ready for AI in the public sector. This includes raising awareness about the potential of AI solutions. Such measures create the conditions for the uptake of trustworthy solutions, leading to cultural and organisational change. Integrating training and capacity-building programmes for public servants is essential. 

Read our good practice AI Certificate for Public Servants from the Interreg Europe ENAIBLER project

In the uncertainties that AI technologies bring to the life of citizens and policy makers, the EU AI Act is a critical step forward, offering both immense potential for AI-driven innovation in local governments and highlighting the importance of vigilance against risks such as privacy breaches and biases. 

As the main actors on the ground, local authorities can rely on the new legislative framework to harness AI creating sustainable, inclusive, and resilient territories, ultimately improving the quality of life for citizens.

To go further

• Access our tailored expert services to create effective digital transformation policies embracing AI. Have a glance at our peer review on the Trustworthy use of AI in companies for the benefit of the Austria Wirtschaftsservice.
• Opinion paper on European Approach to Artificial Intelligence - Artificial Intelligence Act, Guido Rink
• Impact Assessment Mensenrechten en Algoritmes in Dutch, University of Utrecht
• Policy brief on Digital transformation of the public services