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Government and public agencies often are seen as slow moving, resistant to change, and mired in bureaucratic red tape. But more and more agencies are defying this perception, and the trends for government in 2025 reflect this new mindset around agility.
Like their private sector counterparts, governments at all levels have been undergoing digital transformation. They’re moving systems to the cloud and automating processes by adopting new technologies like AI and robotic process automation for better efficiency and faster service delivery.
In 2025, we can expect to see this trend continue as organizations work to streamline and automate their operations for better citizen outcomes.
More than 60% of government organizations will prioritize investment in business process automation by 2026, up from 35% in 2022, according to Gartner.
As the public sector ramps up its technology investments, let’s delve into the government trends to watch in 2025.
Government trends 2025: Modernization and trust issues are driving change
While many governments around the world have made great strides in improving their operations and services, transformation isn’t easy – especially in the public sector where trust is critical.
Here are the top government trends in 2025:
- Meet growing citizen expectations to provide modern services and fast responses
- Get serious about understanding and using AI
- Close skills gaps to modernize the workforce
- Advance equity in communities and society, vendor ecosystems, and the workforce
- Build resilience and agility by modernizing infrastructure and processes
The public sector struggles with tight budgets, employee retention, compliance pressures, and growing demand for services. Conflicts are growing at regional and global levels. Public agencies are on the frontlines when disaster strikes. And citizen skepticism is hard to overcome.
Clearly, public agencies have their work cut out for them in 2025.
According to the 2024 Edelman Trust Barometer, respondents rated government as far less competent and ethical compared to business. Seventeen of the 28 countries polled distrust the government, including the U.S., Germany, and the UK.
1. Citizens want more and better services from the public sector in 2025
People today have high expectations when they’re dealing with an entity, whether that’s a business or a government agency. They expect modern, accessible and convenient services, and a fast response when they need help.
This means public entities need to be available to citizens on multiple channels, including online, email, SMS, in-person, and phone. Information needs to be readily available, and service reps should provide timely, knowledgeable help. Being empathetic also goes a long way in providing the experience citizens expect—and building trust in government.
Americans rated government services last in customer service satisfaction compared to nine private sector industries in a McKinsey survey.Organizations that improve customer experience and satisfaction foster increased trust in government, lower costs, and more civic engagement, according to McKinsey research.
In 2025, improving CX will be a top government trend as organizations focus on delivering the exceptional, empathetic service their constituents demand.
89% of US federal agencies and 92% of state and local governments are committed to delivering constituent-centric services and support creating transparency and easy access to information, according to a 2024 EY study.
2. Government trends in 2025: Harnessing the power of AI
While the public sector has made strides in modernizing its systems and processes, it’s only scratched the surface of what artificial intelligence can do.
A US General Accountability Office report earlier this year found that federal agencies have only implemented a fraction of the AI use cases they’ve identified, but by 2026, more than 70% of government agencies will use AI to enhance human administrative decision making, according to Gartner.
The EY study found that nearly 75% of 200 federal IT decision makers surveyed believe widespread AI adoption will happen within the next three years.
Governments can gain big benefits from AI and generative AI, and there’s little time to waste. Using automation, organizations can streamline processes and boost productivity to better serve their constituents while staying within budget constraints.
For example, AI embedded into customer service applications make it possible for citizens to get simple questions answered quickly without human intervention. Employees can use virtual assistants integrated into finance, procurement and other systems to speed their work.
Public sector leaders are balancing the risks and rewards of AI. Get the lowdown on where the industry is going in this report.
3. Closing the government skills gap in 2025
As the public sector works to modernize its systems and improve operations, the need for skilled employees will be a top government trend.
In the U.S., the GAO listed federal efforts to address government-wide and agency-specific skills gaps as high risk since 2001. The Office of Personnel Management identified skills gaps in cybersecurity, human resources, and acquisition.
OPM works to help federal agencies close workforce skills gaps, but has its own issues, including a lack of data analytics skills, according to a GAO report.
Two in five federal leaders cite a shortage of skilled employees as as one of the biggest barriers to technological modernization, according to the EY study. More than half (53%) said training and upskilling employees on emerging technologies is a top operational priority.
4. Governments prioritize equity
While focusing on closing the skills gap, organizations also will work on advancing equity, making it a top government trend in 2025. Building a diverse workforce is one way they can do that, along with providing inclusive and accessible public services and working with a broad vendor ecosystem.
“Globally, governments are increasingly focusing on reducing historical disparities, improving access to resources, and implementing regulations that promote a more just and equitable future,” Deloitte wrote.
“By focusing on three primary spheres of influence within government organizations—communities and society, vendor ecosystems, and the workforce—governments can advance equity within and outside their agencies.”
For example, governments are boosting equity by improving their digital services with simplified online portals and more user-friendly interfaces, they said.
The US Internal Revenue Service launched a new tool for the 2024 filing season that enabled families in 12 US states to file their taxes for free directly with the IRS.
5. Building resilience and agility is a critical government trend in 2025
In 2025, agility will be a top government trend as organizations work to improve their ability to respond to both anticipated and unforeseen issues around the environment, economy, public health, and other societal changes.
89% of state and local leaders say modernizing infrastructure to be more resilient to extreme weather events is important, according to the EY study. 76% said climate resilience factors into their agency’s decisions on a daily basis.
According to Gartner, growing adoption of platform-based solutions like industry clouds and low-code applications is helping government organizations more easily scale to meet citizen needs.
Technology plays a big role in building agility, but real improvement requires a broad, holistic approach.
“It’s a coordinated effort where regulatory adjustments, collaboration, and workforce innovations complement technological advancements,” Deloitte said.
Government transformation: Pressing forward, driving change
Shedding the sluggish stereotype isn’t easy for those in the public sector. But many organizations are proving change is possible.
For example:
- The canton of Basel-Stadt in Switzerland acted fast during the pandemic to implement technology that enabled it to support businesses and landlords with rent relief.
- South Africa’s Cape Town automated its field management processes to speed road repairs and take a more proactive approach to road maintenance.
- The City of Hamburg in Germany developed a self-service platform that processes financial aid requests digitally, helping the cultural industry and setting a best practice model for helping other people and organizations in need.
When it comes to transformation the government sector, the stakes are high. Citizens and communities depend on public entities for so much. Government leaders have the power to create a better future for all.
