Transforming Government Services With AI-EN

29 October – 01 November 2018 / Gold Coast, Australia
Exploiting AI to Successfully
Transform Government Services
Dean Lacheca
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In 5 Years, Anything as
Government a Service
Services Will Conversational
Be More …
Location-Aware
1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.
In 5 Years, Anything as
Government a Service
Services Will Conversational
Be More …
Intelligent
Location-Aware
Key Issues
1. What is the current state of AI adoption in government?

2. Where are AI-enabled public services being deployed?
3. How can government CIOs accelerate the use of AI?
Now Is the Time to Adopt AI… With a “5 Rs” Approach
1
Raise
5 AI IQ 2
Rollout Reposition
AI as IA*
4 3
Restrict Recommend
Scope Opportunities
*Intelligent Augmentation
AI Is Speeding Through the Hype Cycle
From “Hype Cycle for Artificial Intelligence,

2018,” 24 July 2018 (G00357478)
AI is a broad and
29% 37% 20% 6% 9% quickly evolving
range of
technologies
This Uncertainty Presents Challenges to AI Adoption
Percentage of Respondents. Sum of Top 3 Ranked
Security or
38% 17% 15% 6%
privacy concerns
28% Defining our AI strategy 6% 9% 13%
1st choice
Resistance to change
25% 11% 6% 8% 2nd choice
within the organization
3rd choice
23% Governance issues 10% 11% 2%
21% Funding for AI initiatives 6% 6% 9%
Government, excludes not sure, n = 53

Percentages may not add to sum due to rounding
Please rank the top 3 challenges to the adoption of artificial intelligence (AI) within your organization
Source: 2018 Gartner Artificial Intelligence Enterprise Perceptions, Plans and Implementation
Security or
38% 17% 15% 6%
privacy concerns
1st choice
25% 11% 6% 8% 2nd choice
3rd choice

Security or
38% 17% 15% 6%
privacy concerns
1st choice
25% 11% 6% 8% 2nd choice
3rd choice

Security or
38% 17% 15% 6%
privacy concerns
1st choice
25% 11% 6% 8% 2nd choice
3rd choice

Security or
38% 17% 15% 6%
privacy concerns
1st choice
25% 11% 6% 8% 2nd choice
3rd choice
These obstacles are

21% Funding for AI initiatives 6% 6% 9% not new to government
CIOs. AI just adds a
different twist.
Even So — Planning and Implementation Is
Cautiously Underway
What are your organization’s plans in terms of artificial intelligence (AI)?
All Government Top Performers
Have already deployed (n = 496) (n = 208) 3%
Will deploy in next 12 months 15% 10% 27%
18%
Will deploy in 12 to 24 months 17% 33% 56%
Plan to deploy in 2 to 3 years
36%
23%
No Interest 22% 23%
2%
27% 8%
27% 14% 36%
11% 11% 12% 14% 14%
24% 20%
19%
37%
16%
28% 34%
22% All levels of government are
25% 35%
14% 38%
16%
experimenting with AI to
improve processes and create
National/Federal State/Province County/Region City/Municipality
(n = 236) (n = 93) (n = 60) (n = 73) a better constituent experience
Source: 2019 Gartner CIO Agenda Survey
The Value of AI Applies to All Public Sector Verticals
IA
Administration Business Defense and Education and Health and International Justice and Natural Transportation
and Finance Services Intelligence Research Social Services Affairs Public Safety Resources and Public Works
35% 31% 27% 25% 25%

Robotic Process Chatbot Computer-Assisted Virtual Assistant Fraud Analysis
Automation Diagnostics 101001010
111100111
Hello, can I 010100101
010111111
help you?
Total answering: Respondents who are using AI for any application, excludes “Not sure” and “None of the above”, n = 271
Robotic Process Automation Includes Computer-Assisted Process Optimization and Process Optimization Tools
Virtual Assistants Includes Call-Center Virtual Customer Assistants (VCAs) and Virtual Personal Assistants (VPAs)
Multiple Responses Allowed
Top Uses of AI for Government and Top Performers, 2019
CIO Action Robotic process automation 35%

45%
31%
Evaluate how AI-enabled Chatbots 44%
capabilities can transform Computer-assisted diagnostics 27%
26%
or optimize government Virtual assistants 25%
35%
Fraud analysis on transactional data 25%
49%
Face detection/recognition 20%
18%
Sentiment analysis or other opinion-mining analysis 16%
28%
HR applications such as resume screening 14%
15%
Other 12%
12%
Market/Consumer segmentation 8%
41%
Anomaly or fraud detection on IoT data 7%
14%
Self-driving vehicles 4%
4%
Smart robotics (automated warehousing/manufacturing) 3%
11%
0% 10% 20% 30% 40%
Government
50%
must
60%
benchmark progress
ALL Government Top Performers
(n = 271) (n = 170) against top performing
Total answering: Respondents who are using AI for any application, excludes “Not sure” and “None of the above”
Robotic Process Automation Includes Computer-Assisted Process Optimization and Process Optimization Tools
companies
Virtual Assistants Includes Call-Center Virtual Customer Assistants (VCAs) and Virtual Personal Assistants (VPAs)
Multiple Responses Allowed
Key Issues

Upholding Program Integrity
Enhanced Fraud Detection With Advanced Analytics
Opportunity
 Stem the loss of fraud on improper health insurance payments,
Electronic
which can cost taxpayers $70 billion annually. Medical Claim
What was transformed and how

 The U.S. Department of Health and Human Services
established an office of the chief data officer.
 The OCDO accelerated data analytics capabilities for use in
audits, investigations and evaluations. Machine
Results ! Learning
 Criminal and civil charges for 301 individuals accused of Model
participating in healthcare fraud schemes totaling $900 million.
 Prior year success: 243 individuals accused of participating in
healthcare fraud schemes totaling $700 million. Fraud
Score
 Arrests can have a deterrent effect that further reduces criminal Adapted From MapR Technologies
or fraudulent claims submissions by $1 billion.

Open for Business 24/7 — Putting a Virtual
Face on Government Procurement
Opportunity
 Provide businesses interested in city bids with an excellent
customer service experience and immediate access to information.
Hi. I am Ask Laura! The City’s
What was transformed and how Virtual Information Officer.
How May I Help You?
 An avatar named Laura helps business users register as a
vendor, how to work with special programs, where to find bids
and other FAQs.
 Unanswered questions are retained and reviewed to support
continuous learning and monthly program updates.
Results
Enter Your Question Here
 Laura can answer basic questions and reduces call volumes.
Tags Categories
 First year with implementation and purchasing the software was
$20,140. Estimates annual costs savings $26,252.
Have a
 Plans to deploy to Department of Planning and Inspection and Question?
the El Paso International Airport websites.
Made in the Shade — Preserving the Canopy of
Downtown Montréal
Opportunity
 The cost of growing, transporting and planting one tree ranges from
$1,000 and $6,750. The city replants thousands of trees per year.
 Montreal has roughly 1.2 million trees, 265,000 of which are
street trees, with a total estimated worth of $1.2 billion.
What was transformed and how

 AI system is shown images of healthy trees and compares them
with recent photos to identify unhealthy trees that need care or
replacement.
Results
 Develop and maintain a comprehensive inventory of urban trees.
 Protect city assets by monitoring newly planted trees for the
first three to four years, when it is most vulnerable to damage
or disease.
Key Issues

Government AI Applications Rest on Core AI Technologies
Leading AI Application Areas

Bots, Chatbots and Virtual Assistants
Conversational AI Platforms
Analytics and Predictive Analytics Models
Smart Objects, Sensors and Environments
CIO Action
Core AI Technologies
Machine Learning, Deep Learning and Neural Networks Become familiar
Natural Language Processing, Speech Recognition and Text to Speech with (but not an
Computer Vision, Augmented Reality, Virtual Reality
expert in) AI
Machine Reasoning, Decision Making and Algorithms
Business Analytics and Data Science
technologies
Robots and Sensors and applications
Source: “A Framework for Applying AI in the Enterprise” (G00336031)
.
Artificial Intelligence Timeline — Today’s AI Is Narrow AI
Machine Learning General AI

Algorithms focused on a specific Applies
AI Research problem that provides insights intelligence
to any problem
Initial Supervised Unsupervised Reinforcement
Learning Learning Learning (Near-Human-Level
Concepts Intelligence) CIO Action
Deep Learning
Narrow AI General AI Focus on business

results enabled by
1960s 1970s 1980s 1990s 2000s 2010s 2020s Unknown
applications that
exploit narrow AI
Narrow AI: Tightly scoped machine learning technologies
solutions designed to perform a specific task.
Source: “Top 10 Strategic Technology Trends for 2018” (G00327329)
The Main Categories of Machine Learning (ML) and
Corresponding Outcomes
Binary
(Y/N, M/F)
Machine
Learning
Categorical
Similarity Clustering
Classification
(White, Blue,
Red, Green,
ML systems:
Black)
Ordinal
Unsupervised Supervised
Comparison
(Small,
Can make the best
Legend
ML Category
Learning Learning Medium,
Large)
possible decision if
Numeric there is enough data
ML Method Estimation Calculations
(Price,
Temperature)
to learn from
ML Output
Only Input Input and Output
in Data in Data
Data for ML Cannot judge
Most successful production implementations whether the decision
currently use supervised learning is ethical
Source: “How to Start a Machine-Learning Initiative With Less Anxiety” (G00331893)
Business Objectives Must Drive the Application of AI-
Enabled Public Services
Digital Government Opportunities
Cost  Maximize Revenue
 Enhance Experience
 Increase Engagement
Business  Optimize Processes/Assets
Case  Transform Services
 Provide Security
Risk Value
 Improve Health
 Conserve Resources
In government, increased business value is
synonymous with increased public value.
Establish an AI Center of Excellence (COE) to Shape, Shift
and Share the Adoption of AI
Practical
SHAPE the creation of AI policy
and practice
PERSUADE ENFORCE
SHIFT to an AI governance
model that puts
“humans in the loop” Distributed Centralized
SHARE your vision of AI-enabled
transformation INFORM INNOVATE
CIO Action
SELECT the AI COE structure that best
Creative
fits your organization.
Source: “Choose the Right Center of Excellence for Your Artificial Intelligence Strategy” (G00353124)
Where to Begin With AI Projects? Evaluate the Ethical and
Legal Implications
AI should be developed for the common
1 good and benefit of humanity.
Human rights
Accountability Transparency
Well-being Awareness
of misuse
Sources: “AI in the UK: Ready, Willing and Able?” (2017)

“The IEEE Global Initiative on Ethics of Autonomous and Intelligent Systems” (2017)
“The CIO’s Guide to Digital Ethics: Leading Your Enterprise in a Digital Society” (G00335853)
If Your AI Project Passes the Ethics Test, Then Evaluate
the Quantity and Quality of Needed Data
Answer these questions

Does this business
Develop or acquire
opportunity have
Yes AI app skills to Pursue
1. A sufficient amount of quality leverage data
data we understand? Develop or acquire
2. Generally agreed upon No Postpone data science skills to
choices or outcomes? leverage AI solutions
No Yes
3. Are off-the-shelf solutions or toolkits available?
One Approach to Iterative Machine Learning Development
… a More Reliable Approach

It is called a data dump for a
Data Science and
reason … Machine Learning


Frame
Problem
Life Cycle
Measure Prep
DATA
and Data
Evolve
RESULTS
Strategize
and Plan
Develop
Deploy and
Evaluate
Source: “Six Pitfalls to Avoid When Executing Data Science and Machine-Learning Projects” (G00343613)
Follow a “5 Rs” Approach to AI Adoption and Deployment
Raise Restrict
1 4
AI IQ Scope
Reposition
2 5 Rollout

AI as IA
Intelligent
Augmentation
Recommend
3
Opportunities
Recommended Gartner Research
 An Artificial Intelligence Reality Check for CIOs

Jamie Popkin and Leigh McMullen (G00361599)
 Artificial Intelligence Maturity Model
Whit Andrews, Frances Karamouzis and Others (G00358062)
 Choose the Right Center of Excellence for Your Artificial
Intelligence Strategy
Whit Andrews, Bern Elliot and Jim Hare (G00353124)
 Market Guide for Robotic Process Automation Software
Cathy Tornbohm and Rob Dunie (G00319864)
For information, please contact your Gartner representative.
Recommended Gartner Research
 Market Guide for Virtual Customer Assistants

Brian Manusama and Guneet Bharaj (G00321124)
 Market Guide for Conversational Platforms
Magnus Revang, Van Baker and Others (G00354892)
 Is Conversational AI the Only UX You Will Ever Need?
Gene Phifer (G00326301)
For information, please contact your Gartner representative.


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29 October – 01 November 2018 / Gold Coast, Australia

1. What is the current state of AI adoption in government?

From “Hype Cycle for Artificial Intelligence,

28% Defining our AI strategy 6% 9% 13%

23% Governance issues 10% 11% 2%

21% Funding for AI initiatives 6% 6% 9%

Government, excludes not sure, n = 53

28% Defining our AI strategy 6% 9% 13%

23% Governance issues 10% 11% 2%

21% Funding for AI initiatives 6% 6% 9%

Government, excludes not sure, n = 53

28% Defining our AI strategy 6% 9% 13%

23% Governance issues 10% 11% 2%

21% Funding for AI initiatives 6% 6% 9%

Government, excludes not sure, n = 53

28% Defining our AI strategy 6% 9% 13%

23% Governance issues 10% 11% 2%

21% Funding for AI initiatives 6% 6% 9%

Government, excludes not sure, n = 53

28% Defining our AI strategy 6% 9% 13%

23% Governance issues 10% 11% 2%

These obstacles are

35% 31% 27% 25% 25%

CIO Action Robotic process automation 35%

1. What is the current state of AI adoption in government?

What was transformed and how

or fraudulent claims submissions by $1 billion.

What was transformed and how

1. What is the current state of AI adoption in government?

Leading AI Application Areas

Machine Learning General AI

Narrow AI General AI Focus on business

Sources: “AI in the UK: Ready, Willing and Able?” (2017)

Answer these questions

… a More Reliable Approach

 An Artificial Intelligence Reality Check for CIOs

 Market Guide for Virtual Customer Assistants

For information, please contact your Gartner representative.

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