TLDR: A new study by McKinsey & Company reveals that integrating Artificial Intelligence, particularly Generative AI (GenAI), into Romania’s public sector could boost employee productivity and generate up to €1 billion annually. The report also suggests that GenAI could contribute an additional €30-50 billion to the country’s GDP by 2040, despite existing challenges in digital skills and infrastructure. Romania is making strides in digitalization, as evidenced by the establishment of the Authority for the Digitalisation of Romania (ADR) and the 2024 approval of its National AI Strategy.
Bucharest, Romania – A recent study by McKinsey & Company’s European experts highlights a significant economic opportunity for Romania, projecting that the integration of Artificial Intelligence (AI) within its public sector could yield an annual benefit of up to €1 billion through enhanced employee productivity. The comprehensive report, titled ‘The transformative potential of AI in Romania’s public sector,’ further estimates that Generative AI (GenAI) alone could add a substantial €30–50 billion to Romania’s Gross Domestic Product (GDP) by 2040, translating to an annual GDP increase of approximately 0.6%.
The study underscores the transformative potential of AI in modernizing public services, identifying key areas for improvement such as automation of routine tasks, more informed decision-making processes, and greater engagement with citizens. McKinsey has outlined a six-step framework designed to guide ministries and government agencies in the large-scale implementation of GenAI across their operations.
Ovidiu Tișler, Managing Partner of McKinsey & Company Romania and a co-author of the article, emphasized the strategic importance of this technological shift. “Generative AI is more than a technological leap; it is a strategic opportunity for Romania to modernise its public services and generate greater economic value,” Tișler stated. He added, “With GenAI, government can deliver faster, smarter and more citizen-centric services, while also ensuring an annual GDP increase of around 0.6%.”
Despite the promising outlook, the report acknowledges existing hurdles, including relatively low digital skills among the workforce and limitations in technological infrastructure. However, Romania is actively addressing these challenges and demonstrating progress in its digitalization efforts. Notable advancements include the establishment of the Authority for the Digitalisation of Romania (ADR) and the formal approval of the National AI Strategy in 2024. These initiatives reflect a growing national readiness to embrace advanced digital technologies.
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Romania’s commitment to digital transformation is also reflected in its improved standing in the Government AI Readiness Index, where it now ranks 58th globally and 13th in Eastern Europe, indicating steady progress. The McKinsey study provides specific data points illustrating AI’s potential impact: GenAI could automate up to 60% of administrative tasks within public institutions, significantly streamlining operations. However, the report also points out a disparity in digital public service adoption, with only 24% of Romanians currently utilizing e-government services, starkly contrasting with the European Union average of 75%.
