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Public Administration. Generative AI can contribute 1.2 billion

“Generative AI has significant potential to increase productivity in the Public Administration in Portugal, creating a cost-benefit relationship 9% higher, equivalent to an annual contribution of 1.2 billion euros,” highlights a key finding of the report titled “The AI opportunity for eGovernment in Portugal”.

The study, exploring the economic impact of applying generative AI in Portugal’s public sector, was commissioned by Google and conducted by Implement Consulting Group and Católica Lisbon School of Business and Economics.

The report additionally notes that “average productivity per public administration professional could be up to 9% higher in 10 years.”

For two-thirds of the public administration workforce, approximately 200,000 jobs, generative AI technology could enhance a significant portion of their tasks, making its integration into daily processes viable.

The findings also reveal that more than half of the Portuguese public sector employees already utilize AI tools, with 80% believing they will be important in the next 10 years.

“The upcoming National AI Agenda should set ambitious goals and provide a clear roadmap to unlock most of AI’s potential for the public sector within five years and fully in 10 years,” the document states.

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