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Many operations in the public sector require new ways of working and solutions. Artificial intelligence (AI) can play an important role, but using it effectively requires a well-planned strategy for the entire business. The Varberg Municipality in Sweden started its strategic AI work by conducting an AI Maturity Assessment with CGI.
The Varberg Municipality, located in Halland County, Sweden, has 19 urban areas and 6 service towns with around 68,000 inhabitants. It had already digitized many operational processes, but it also identified challenges in staffing and skills, investments, increased government requirements, as well as the need to restructure its operations. This meant that Varberg needed to find new ways to deliver on its core mission.
Smart decision support, AI, digitization, and other tools are expected to address these challenges and simplify operations, while helping the municipality use AI in a responsible way. Daniel Leon, a development strategist at Varberg, leads the municipality’s digital transformation plans and views AI as key to the organization’s success. While Varberg has ambitious plans, it also wants to make informed choices that prioritize the organization and its processes, as well as applicable laws and citizen values.
"Studies and research show that fewer people need to do more in a number of areas in the public sector," noted Daniel. “For this to be possible, effective and well-thought-out digital support is required. We have an open ambition when it comes to AI. We know we want to use AI, but in the right way.”
Daniel Leon
How AI benefits municipalities
There are several benefits AI can offer municipalities:
- Manage or streamline repetitive tasks using AI, machine learning, or robotic process automation (RPA)
- Process high volumes of data, where AI-driven language models (large language models or LLMs) can search for and find the right information quickly
- Support the municipality's planning and decision-making in verifying results, documenting, and assisting with predictive analyses of needs and future developments. This can form the basis for expanding citizen services, such as health care, education, and social care.
"In some areas, for example, we could use AI to give citizens answers or information faster," said Daniel. “Take, for example, the management of financial assistance to citizens. We have learned from other municipalities. It’s obvious that it’s important for citizens to receive rapid payments. However, it turns out that a quick decision is more important than the payment itself. Verifying applications and automating document compilation is something that AI can help with and that can mean faster feedback.”
Maturity assessment: The cornerstone of an AI strategy
To build Varberg’s digital transformation and AI strategy, Daniel and his colleagues wanted a credible analysis of its current operational landscape that takes all elements into account.
"When it comes to AI, it's important that it doesn't just become a technology project," shared Daniel. “It’s also very much about competence, organization, and how initiatives can be developed in the future. At the same time, we must not deviate from the foundation of municipal operations and continue to build a robust operation.”
Varberg Municipality chose to carry out CGI's AI Maturity Assessment, which is designed to help organizations evaluate their AI capabilities, identify requirements in using AI for good, and build a robust AI strategy .
"It’s possible to conduct a maturity assessment yourself, but with the support of CGI, we received a more comprehensive analysis of the results, and, above all, they were very professional and knowledgeable in identifying gaps and building the plan going forward," said Daniel. “Getting CGI’s help with prioritizing and creating the plan was invaluable.”
Within the Varberg organization, employees were open about participating in the maturity survey and found it to be an exciting part of the digital transformation effort. "It's great that so many people are interested and committed, but it's important that we don't just throw ourselves into different AI projects," shared Daniel. “The maturity assessment has revealed in black and white which areas and parts must be included in the AI plan. For example, we need to be very careful about what information is used and disclosed. In addition, there are many legal issues that we need to address.”
Competence and a commitment to responsible AI
With the results of CGI's AI Maturity Assessment, the Varberg Municipality now has a good foundation for using AI responsibly and generating business outcomes.
"It is very important that we are on board the AI train,” said Daniel. “Not only to increase our knowledge, experience, and expertise," but also to use AI in a good and sustainable way, which is in line with our business and goals. I also think it's important that we take the time to document what we do and how we will use and integrate AI into the business. With the data from CGI’s AI Maturity Assessment, we have more knowledge and thus, we can create a more viable long-term roadmap.”
"The collaboration with CGI has been very good," Daniel noted. “The competence and commitment of CGI's consultants have been very high and a great asset. I must also give them a lot of credit for their attitude. They have been very positive throughout the process, with a full focus on what can be done. This has given us very good energy and enthusiasm throughout the organization.”
Lessons for the future
CGI’s collaboration with Varberg Municipality has helped the municipality reflect on AI and how its operations should be organized to get the best return on its AI investment.
Going forward, "I see that we would need an AI core team, which can work out a clear strategy, principles, processes and goals," said Daniel. “That group can then work with the municipality's lawyers to get the legal parts in place. They can also assign the IT department to develop a technology plan linked to the AI initiatives. An important part is also to have HR on board. This core team can then act as support for the entire business. When development is fast, both for the technology and for the business, it is even more important that the business receives good guidance.”
Learn more about CGI’s AI capabilities and client successes.
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