The use of Artificial Intelligence (AI) in the public sector can have a significant impact on public policies and services. It has the potential to free up a significant amount of public servants’ time, allowing them to shift from mundane tasks to high-value work, thus increasing public sector efficiency and effectiveness. Governments can also use AI to design better policies and make better and more targeted decisions, enhance communication and engagement with citizens and residents, and improve the speed and quality of public services. While the potential benefits of AI in the public sector are significant, attaining them is not an easy task. Government trails behind the private sector in using AI, the field is complex and has a steep learning curve, and the purpose of – and context within – government presents a number of unique challenges.

The use of Artificial Intelligence (AI) is reshaping economies, promising to generate productivity gains, improve efficiency and lower costs. Governments hold a unique position in relation to AI, determining national strategic priorities, public investments and regulations. Governments have also acknowledged the importance and future potential of AI in many economic sectors, with more than 60 countries developing national AI strategies. Recognising that issues relevant to AI transcend borders, countries are also increasingly adopting regional approaches to AI, including co-ordinated efforts in the European Union (EU) and the African Union, among Nordic-Baltic states and Arab nations, and within the G7 and the G20. The OECD has also strengthened its AI-related efforts in recent years, spearheaded by the OECD.AI Policy Observatory. Indeed, the OECD AI Principles adopted in 2019 are the first intergovernmental standards on AI.

Artificial Intelligence (AI) offers tremendous potential for innovation in all sectors and industries. In the private sector, AI is an intrinsic part of myriad technologies and services in the form of algorithms that mapping apps use to avoid traffic, that Netflix and Spotify use to provide recommendations, and that e-mail providers use to automatically filter for spam.Use of AI in the public sector is just as relevant, and perhaps holds even more potential for improving lives and transforming societies, based on the variety of roles that governments play (financier, buyer, regulator, convener, standards-setter, data steward, user and service provider) (Berryhill et al., 2019[1]).

Artificial Intelligence (AI) holds tremendous potential for all sectors in Latin America and the Caribbean (LAC) countries. The public sector is responsible for national priorities, investments and regulations, and is thus in a unique position regarding AI adoption. Governments are also in a position to leverage the immense power of AI to innovate and transform the public sector, redefining the ways in which it designs and implements policies and provides services to its people. Such innovation and transformation is critical for governments as they face ever-increasing complexity and demands from their citizens, residents and businesses. This chapter examines the strategic approach to AI adopted by LAC governments, with a particular focus on whether and to what extent they are positioning themselves to leverage its potential for public sector innovation and transformation.

The development of Artificial Intelligence (AI) strategies in multiple countries reflects growing awareness of the huge potential for AI application in the public sector, both to improve internal processes and the ways in which government engages with and serves its people. Governments at national and sub-national levels around the world and in Latin America and the Caribbean (LAC) countries have already designed and implemented numerous AI projects and initiatives, as discussed throghout this chapter.

As is evident from the use cases presented in Chapter 3, there is significant potential for AI applications in the public sector across the LAC region. However, the application of AI also raises many challenges and has implications that LAC government leaders and public servants need to consider when determining whether and how the technology can help them address problems and achieve their objectives. This chapter explored how LAC governments are building principles and taking actions for ensuring that they take a responsible, trustworthy and human-centric approach to AI.

Beyond building trust in AI in the public sector, governments must take action to ensure they have the necessary governance mechanisms and capacities in place to realise their goals and ambitions. At a foundational level, governments that have achieved high levels of digital maturity in their public sector will be best positioned to reap the benefits of AI in the public sector, while overcoming key challenges and pitfalls. This chapter discusses LAC governments’ progress in putting in place foundational governance capacities for AI.

AI strategies, principles and governance mechanisms are not enough to bring about meaningful progress in achieving AI goals. To make these things tangible, governments will need to ensure that adequate resources and other enablers are provided or otherwise accessible. This chapter explores the extent to which LAC governments are putting in place these resources and enablers.

This report makes 13 key recommendations to LAC national governments to maximise positive potential impacts of the use of AI in the public sector, and to minimise negative or otherwise unintended consequences. This chapter presents these recommendations for their consideration.