Dive Brief:
- Public sector AI use cases grew 50% from 2024 to 2026, according to a recent research report commissioned by Twilio, a communications platform. But while 86% of organizations viewed their AI use as transparent with the public, only 50% of residents agreed, it said.
- The perception gap was not limited to AI adoption: 88% of public sector organizations surveyed rated their digital infrastructure for resident engagement as good or excellent, but just 44% of residents surveyed thought the same.
- “While agencies have done the heavy lifting of basic digitization, technological capabilities and citizen expectations are rising faster than governments can adapt,” Erin Reilly, chief social impact officer at Twilio, said in a news release. “To bridge this gap, agencies must focus on connecting existing tools into a unified strategy.”
Dive Insight:
Digital interactions account for around 70% of all resident engagement, up from 62% two years ago, according to the survey. That number is expected to rise to 76% by next year.
Despite the public sector doing “more than ever” in terms of offering digital services, residents reported fewer tangible benefits from digital engagement compared with two years ago, the survey found. Perceptions of public sector digital services benefits — including time saved, getting better results and having a better experience — all plunged by double digit percentage points.
Some local governments expect AI to play a larger role in resident interactions going forward. “As AI adoption accelerates, building trust with residents must be designed directly into the citizen experience from day one,” Reilly said.
The top three AI use cases public sector respondents gave in the survey included answering resident questions or resolving issues, resident segmentation and targeting and analyzing data.
As many as 45% of public sector leaders report using generative AI regularly, according to the survey, which was conducted between April and May 2026.
