TLDR: Agentic AI, a proactive form of artificial intelligence capable of autonomous action, is emerging as a significant force for transforming public services. Experts predict substantial productivity gains, potentially 20-30% or even up to C$700 billion in Canada, by automating routine tasks, enhancing decision-making, and enabling public servants to focus on higher-value work. This shift aims to create more efficient, responsive, and citizen-centric government operations.
The public sector stands on the cusp of a significant transformation, driven by the advent of agentic artificial intelligence. This advanced form of AI, unlike traditional systems that merely respond to inputs, can autonomously perceive, decide, and act towards goals with minimal human intervention, effectively serving as an “invisible colleague” for public servants.
Across the UK’s public sector, digital transformation is no longer a future goal but a daily necessity, with teams under growing pressure to deliver more efficiently. According to the National Audit Office, 70% of government bodies were piloting or planning AI use cases last year, a number that continues to rise. Similarly, in Canada, McKinsey estimates that generative AI could unlock a C$700 billion “productivity effect” on public sector and adjacent industries. Michael Jary, former lead non-executive director for the UK government, suggests that agentic AI could lead to productivity improvements of “at least 20% to 30%” in government, making services faster, more accessible, and transparent.
Agentic AI’s capabilities are built on four core skills: reasoning, memory, task action, and orchestration. These allow it to automate routine administrative tasks that often burden public servants, such as drafting responses to citizen inquiries, processing paperwork, or generating policy briefs by summarizing vast amounts of legislative and research data. For instance, in healthcare or social work, professionals frequently spend as much time on documentation as they do with people; agentic AI can alleviate this burden, freeing up time for direct citizen engagement.
Experts emphasize that the successful integration of agentic AI requires a strategic approach. This includes focusing on the right use cases, building a strong data foundation, implementing robust governance, leveraging AI assistants and agents, and upskilling the workforce. The goal is to move beyond simply “bolting on” AI to existing processes (+AI) to a state where AI becomes the driving force behind organizational transformation (AI+), rethinking workflows and operating models around AI.
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Challenges remain, including the rising cost of training frontier models and the complexity of integration, but the potential rewards are immense. Agentic AI is available 24/7, infinitely scalable, and provides consistent, accurate results based on data-driven insights. As government agencies fast-track IT modernization to boost efficiency, enhance cybersecurity, and cut costs, agentic AI is emerging as a game-changer for faster, more intuitive, and scalable citizen interactions. This technology promises not just efficiency gains but also the potential to foster a more networked, less siloed government, transforming fragmented services into seamless journeys for citizens.


