Digital government: Cloud computing and AI drive services

The adoption of cloud computing brings significant financial and operational benefits to the government. Eliminating legacy technology and accelerating cloud usage can save billions of dollars—$1.4 billion each year and $13.5 billion over the next decade—through infrastructure consolidation, reduced IT labor costs, and increased productivity. Modernization is not just about moving data; it also involves restructuring systems, redesigning processes, and updating governance.

Reforming procurement, such as multi-year operating budgets and results-based contracts, accelerates adoption. The cloud also supports AI, which could add $5 billion in productivity by 2035, with experiments showing faster work and higher quality. Security remains crucial: modern cloud platforms and best practices mitigate breach risks, saving $178 million.

Investing in digital skills and training personnel is essential to maintain benefits. Environmental benefits include a 14% reduction in CO2 emissions from IT. Measurement experiments with clear KPIs, combined with training and governance reforms, yield financial, operational, and environmental benefits.