Unlocking the Power of AI in the Public Sector

Public sector organizations are modernizing digital services, but they are doing so under unique constraints. From strict compliance and procurement rules to growing demands for transparency and control, agencies are redefining how AI is deployed at scale.

Vultr’s latest report, Unlocking the Power of AI in the Public Sector, offers a deep dive into government’s AI adoption trajectory. It examines the key obstacles and emerging priorities shaping the landscape and ultimately underscoring a clear shift toward sovereignty, flexibility, and predictable cost structures as agencies chart the path forward.

How public agencies are scaling AI with trust, compliance, and control

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How public agencies are scaling AI with trust, compliance, and control

Based on research commissioned by S&P Global, the Unlocking the Power of AI in the Public Sector report explores how governments are advancing AI modernization through diversified, compliant, and sustainable infrastructure that prioritizes trust and control.

Survey findings show a measured path to transformation: 48% of public sector leaders are adopting alternative clouds over hyperscalers to meet sovereignty and compliance demands. Agencies are shifting to diversified infrastructure that reduces vendor lock-in and improves resilience. Cost predictability and data governance are top AI deployment criteria above raw performance.

Across regions, the message is clear: The public sector is taking a measured, deliberate approach to scaling AI – and only on infrastructure designed for transparency, trust, and long-term sustainability.