By Tarun Singh

Harnessing the Power of SaaS and AI: A New Era for NZ’s Public Sector

New Zealand's public sector is undergoing a significant digital transformation, integrating Software as a Service (SaaS) and Artificial Intelligence (AI) to enhance efficiency, security, and service delivery. This digital shift is reshaping how government agencies operate, aiming to provide better services to citizens while ensuring data protection and compliance. It is also setting the stage for a more dynamic and responsive government.                                 

The Digital Shift: From Legacy Systems to Cloud Solutions

Traditionally, public sector organizations have relied on on-premises systems, often resulting in siloed data and cumbersome processes. The adoption of cloud-based SaaS platforms is changing this landscape by offering integrated solutions that streamline operations and improve accessibility. These platforms enable real-time data sharing and collaboration, breaking down departmental silos and fostering a more cohesive work environment.

The Cloud First policy of the New Zealand government signifies a dramatic change in how government organizations handle technology and service provision. According to Radio New Zealand, a $12 billion digital and IT "wishlist" includes $5 billion for cloud-first technology, with a major system revamp, encompassing payroll, HR, and finance, at the top of the list. 

Enhancing Security and Compliance

For public sector organizations, data handled is highly sensitive, therefore, security is still a top consideration. Conventional systems largely lacked full-provision security; hence, they had vulnerabilities and fell into non-compliance. Leading cloud-based SaaS providers now have very advanced security measures along with their certifications of compliance. Security standards were met in such certifications for public sector organizations such as Inside Government, where their data was to be kept safe from threats.

Leveraging AI for Improved Services

The use of AI in public sector operations can bring about innovation and efficiency. AI capabilities can make possible the automation of routine tasks, for example, offering predictive insights in payroll and forecasting and supporting the customer service team in quick and efficient handling of queries. Such enhancements do not only improve productivity but also help the public sector to realign themselves with the new technologies storming the planet. 

Real-World Applications and Benefits

The benefits of adopting SaaS and AI are evident in various case studies. In the United Kingdom, the Crown Commercial Service deployed Workday to replace separate systems for HR, finance, and learning, leading to significant improvements in data accessibility and administrative efficiency. Similarly, in the United States, organizations like the City and County of Denver and Clark County, Washington, have achieved measurable benefits with Workday, including time savings and cost reductions. 

New Zealand's Strategic Approach

New Zealand is actively pursuing AI integration within its public sector. In July 2023, the government released initial guidance on the responsible and trustworthy use of Generative AI (GenAI) tools across the public service. This guidance has to weigh up the benefits against the risks, in such a way that the implementation of any application for AI respects the standards related to privacy and security as well as ethics. 

In addition, the government of New Zealand is creating a strategic approach to AI with the goal of maximizing the nation's potential through focused investments and programs. This plan outlines important actions to be implemented in the upcoming year to spur innovation and enhance public services, and it acts as a roadmap for integrating AI. 

Challenges and Considerations

Numerous benefits come with the adoption of SaaS and AI; however, greater challenges need to be tackled. Data privacy and security should take top priority, especially when it comes to sensitive information. Proper governance of the implementation of AI in public sector organizations as a means to maintain public trust and confidence demands responsible management. The workforce also needs continuous training and reskilling to make the best use of such technologies.

Looking Ahead

The goal of developing a more effective, safe, and responsive government is still the key objective as the public sector in New Zealand continues to use SaaS and AI. Public sector organizations can improve service delivery, encourage innovation, and better serve the changing demands of residents by utilizing these technologies. With a clear vision for a future in which technology and public service combine to produce a more dynamic and effective government, the journey towards digital transformation is still ongoing.