Could AI unlock great customer service in the public sector?

Public sector CX is ready for transformation

Meeting citizen needs efficiently, effectively and with empathy through an integrated, personalized service: this is what AI could really look like in the public sector. Yet research by the Capgemini Research Institute reveals that just 25% of citizens are satisfied or very satisfied with the service they receive from government agencies.

Our new point of view explores why high-quality customer service matters in the sector and what makes it challenging to deliver. It describes the potential Gen AI tools and AI agents offer to elevate that service. And it sets out four steps government leaders in IT or operational delivery can take to start realizing those gains – once they have the right foundations in place.

“72% of respondents in public services cite rising customer expectations as a critical issue facing their customer service functions“

Unleashing the value of customer service, Capgemini Research Institute, March 2025

Where public sector organizations are now

Perhaps surprisingly, our survey shows that more public organizations are exploring, piloting, or have already integrated Gen AI into their customer service operations than the cross-sector average (91% to 86%). And more public sector leaders say they are already seeing benefits, including reduced operating costs and issue handling time.

But thanks to issues including fragmented systems, siloed structures, and a lack of the necessary tech foundations, satisfaction for both citizens and customer service employees remains low.

“In the UK, some people with a long-term disability or condition must interact with 40 services across nine organizations“

The state of digital government review, GOV.UK 2025

The foundations of AI-enabled customer service

Gen AI tools and AI agents are not a magic wand governments can wave to automatically get great results. To be effective, they need to layer their unique capabilities on top of other key enablers of strong customer service:

• A modern, integrated and scalable IT infrastructure.
• Good-quality data, with standard definitions and governance around data sharing.
• Unified CRM systems that provide AI and customer service employees with a full picture of the person they are serving.
• Frameworks and processes for keeping citizen data private, secure and compliant with regulations across all service channels.

What to consider if you are thinking of adopting AI in customer service

Our point of view acknowledges that providing a seamless, personalized service will also involve changing people, processes and mindset. From identifying the opportunities to improving accessibility, the steps we suggest will help governments start creating new value in customer service with AI.