KPMG Report: Govt. Leaders Focused on Latest Tech to Keep Pace with Private Sector

• 6 in 10 very focused on enhancing IT and data systems to improve decisions and efficiency
• Regulatory and security concerns seen as main catalyst for tech upgrades 

NEW YORK, Oct. 26 – Focused on keeping pace with their private sector peers, government leaders are seeking to upgrade their technology capabilities while also addressing the evolving challenges faced by their constituents according to KPMG’s new report, “Tomorrow’s Government Today”. While leaders recognize the importance of modernization, the report identifies significant barriers such as adapting technologies to their environment, securing data, and ensuring solutions meet the needs of workforces and other stakeholders.

“In recent years, government agencies have made significant strides in utilizing technology to connect constituents to services and support their employees. Now is the time to continue pressing forward with these advancements,” said Lorna Stark, National Sector Leader, Government & Public Sectors at KPMG US. “The COVID-19 pandemic demonstrated that governments could move quickly to respond to an unprecedented challenge. Today, the need for technological transformation is no less urgent. It is crucial for the public sector to embrace and adopt these technologies to enhance their missions if they hope to adapt to an increasingly digital and interconnected world.”

The new report features insights from over 1,200 U.S. residents and 200 federal and state government leaders on their perception of emerging technologies in government.

Key Findings:

• 52 percent of government leaders see their agency implementing generative AI within the next five years. Conversely, separate KPMG research found 60 percent of private sector leaders say their companies are 1–2 years away from implementing generative AI solutions.
• Sixty-four percent of constituents say governments need further enhancements to customer service, efficiency, and accessibility, with 70 percent wanting governments to embrace advanced technologies, such as 5G for faster communication and AI for improved efficiency.
• Implementing new technologies is seen as a challenge by government executives, with 72 percent.
• Asked about the main catalyst for further technology upgrades, 59 percent of government executives cited regulatory and security concern.

Survey Methodology

In April 2023, KPMG conducted a survey 1,234 US residents to gather their perceptions of emerging technologies in government. In June 2023, KPMG conducted a survey of 100 federal and 100 state government directors and executives in the United States to gather their perceptions of emerging technologies in government. The purpose of the survey was to gain insights into how government employees view the impact of emerging technologies on their work and the future of government services.

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