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Salesforce & BCG report reveals NZ's USD$5.1bn AI potential
Salesforce and Boston Consulting Group (BCG) have released a new report titled “GenAI: The Trust Multiplier for Government,” focusing on the role of generative artificial intelligence (GenAI) in improving government services in New Zealand. The study draws on data collected from over 4,800 internet users in Australia and New Zealand, including 501 respondents from New Zealand.
The report highlights that if New Zealand’s government successfully incorporates GenAI into its digital services, it could unlock a potential USD $5.1 billion opportunity by 2030. The findings also indicate an improvement in the net satisfaction of digital government services in New Zealand over the past two years, with citizens expressing a growing need for services that match the quality of leading private sector institutions.
A significant 74% of New Zealand respondents believe that online government services should be comparable to those provided by top private sector entities such as banks, airlines, telecommunications companies, and global digital leaders like Uber. Despite these rising expectations, 62% of respondents reported encountering issues with online government services in the past two years. These problems often included lengthy processing times, difficulties in accessing help, and struggles with remembering passwords.
While the study shows a rise in satisfaction with digital government services, up nine percentage points to 74%, it also reveals a mixed sentiment regarding the use of AI in government services. Only 21% of respondents felt that the benefits of government use of AI outweighed the risks, whereas 33% believed the risks surpassed the benefits. People with a higher level of AI knowledge were four times more likely to see the benefits overshadowing the risks compared to those with a basic understanding.
Regarding GenAI, 76% of New Zealanders are comfortable with its use in government services provided there is appropriate human oversight. Conversely, 17% of respondents prefer to engage with humans who do not use GenAI support tools. Addressing broader concerns about AI, an overwhelming 96% of those surveyed expressed worries about the technology's impact on society, highlighting potential job losses, accuracy issues, and moral considerations as their primary concerns.
Trust remains a critical issue, with only 45% of respondents expressing confidence in the government’s ability to use AI responsibly, while 48% indicated a lack of trust.
Gisele Kapterian, Senior Director of Public Sector Strategy APAC at Salesforce, commented on the findings. She remarked that governments are rightly examining GenAI to meet productivity demands, noting that the proper use of AI tools can enhance public trust. Kapterian stressed the importance of transparently communicating the use of GenAI, ensuring ongoing human involvement in decision-making, and implementing robust data protection and privacy measures.
“There remain some concerns regarding the use of AI for online government services,” Kapterian stated. “However, what’s clear is the need for humans to be the final decision-makers. By combining the irreplaceable human element with generative AI capabilities, governments can optimise service delivery in a safe and ethical way.”
The report “GenAI: The Trust Multiplier for Government” is the fourth instalment in the Trust Imperative series by BCG and Salesforce, which explores the relationship between digital government services and public trust. Through this research, they examined the evolution of digital government service usage, satisfaction, and citizens' attitudes towards AI in government.