Towards AI-driven transformation and smart data management: Emerging technological change in the public sector value chain

Abstract

Governments worldwide are beginning to implement AI-based services to exploit data and seek solutions that provide value to citizens and assist in decision-making. AI-driven transformation and smart data management can replace the workforce or enhance it. This paper focuses on exploring AI-driven transformation and smart data management in the public sector value chain. Guided by two research questions, a systematic literature review was conducted using the PRISMA approach, complemented with empirical evidence on the emerging technological change applied to management levels and decision-makers in the public sector. The needs related to AI-driven transformation and smart data management for the public sector are characterized by an operational transformation, which includes human resources and know-how as the spearhead. Challenges have to do with the generation of efficient and transparent services that provide public value and promote the benefit of society. Some implications are related to governments deciding to plan digitalization that allows them to take advantage of the emerging technological change to improve activities along the value chain.

Artificial intelligence capabilities, dynamic capabilities and organizational creativity: contributing factors to the United Arab Emirates Government’s organizational performance

“…Previous research has posited that government entities are encountering challenges in harnessing the advantages of AI technologies as a result of inadequate AIC (Mikalef et al , 2023; Wirtz et al , 2023). Hence, the ability to forecast the potential impact of AIC on public managers’ decision-making processes and resource allocation holds significant value (Mikalef et al , 2023; Valle-Cruz and García-Contreras, 2023). This is because the integration of AIC can enhance government organizations’ DC, thereby leading to improved performance.…”

“…In the UAE, AI adoption is prevalent in government entities, benefiting various sectors such as healthcare, oil and gas, security, energy and transportation (Al Badi et al , 2022; Ghenai et al , 2022; Hujran et al , 2021). While previous studies identified factors affecting AI adoption, little research explores strategies for effectively using AI to enhance overall OP (Dwivedi et al , 2021; Mikalef et al , 2023; Valle-Cruz and García-Contreras, 2023). Several studies have demonstrated that the use of AI in public administration has resulted in enhancements in the perceived value of public services (Robles and Mallinson, 2023), the decision-making processes (Gaozhao et al , 2023) and the allocation of resources (Mikalef et al , 2023).…”

“…In addition, Muzzio and Gama (2024) suggest that quicker decision-making processes can be achieved through the application of these capabilities. Furthermore, Valle-Cruz and García-Contreras (2023) emphasize the importance of using DC to optimize resource allocations within organizations. Lastly, this study explores the role of AI capability in fostering human capital investment for improved OP.…”

“…To optimize AI investment, they must leverage resources and enhance OP. Financial allocations toward AI adoption are increasing to reduce costs, time and uncertainty while promoting transparent services that benefit society (Valle-Cruz and García-Contreras, 2023). Yet, human resources and know-how remain critical factors impeding the implementation of AI and its potential for improving activities along the value chain (Wilson and Broomfield, 2022; Yigitcanlar et al , 2023).…”

“…The information system (IS) literature acknowledges that organizational competitiveness is improved through unique and difficult-to-replicate capabilities arising from the integration of complementary resources (Chowdhury et al , 2023; Valle-Cruz and García-Contreras, 2023; Yigitcanlar et al , 2023). This inquiry pertains to the use of AI applications to enhance OP, particularly in government organizations.…”