OECD Report Unveils AI Adoption Challenges in Government

The Hague, Friday, 19 September 2025.
A recent OECD report highlights the hurdles governments face in scaling AI, despite its potential to enhance efficiency and trust in public services. Most initiatives remain in pilot phases.
The Promise and Pitfalls of AI in Public Administration
The OECD report titled ‘Governing with Artificial Intelligence’ underscores the transformative potential of AI in public administration, noting its ability to enhance decision-making, improve service delivery, and increase efficiency. AI can automate processes, provide tailored public services, and aid in fraud detection, thereby improving the quality of public servants’ work. However, despite these advantages, many AI initiatives remain in the pilot phase due to significant challenges that governments face [1][2].
Barriers to Scaling AI Initiatives
Governments encounter several barriers in scaling AI applications, including skills shortages, financial constraints, and outdated regulations. Accessing and sharing quality data remains a significant hurdle, compounded by legacy IT systems that are ill-equipped to handle modern AI technologies. The report identifies the need for robust governance and policy frameworks to overcome these obstacles, emphasizing a coordinated approach to ensure AI is implemented responsibly and effectively [1][2].
Key Enablers for AI Adoption
The OECD report outlines seven key enablers necessary for the successful adoption of AI in government: governance, data, digital infrastructure, skills development, investment, procurement processes, and partnerships with non-government actors. By focusing on these enablers, governments can create a supportive environment for AI initiatives, ensuring they progress beyond the pilot stage and deliver tangible benefits to public services [1][2].
Case Examples and Global Implications
The report examines 200 real-world examples of AI deployment across 11 core government functions, revealing a wide range of applications from justice administration to civil service reform. This comprehensive analysis demonstrates the global nature of AI challenges and opportunities, highlighting the importance of international cooperation and shared learning to develop standards and best practices for AI governance [1][2].