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      From modernisation to mission driven transformation

      As governments accelerate toward a more digital, data‑driven future, this report explores how public sector leaders are navigating the shift from tactical modernisation to truly transformational use of technology. While artificial intelligence and cybersecurity remain high on the agenda, the research highlights a broader focus on strengthening core digital foundations — from cloud platforms and enterprise systems to data management, skills, and ecosystem partnerships — to support resilient operations and improved service delivery in an increasingly complex environment.

      Drawing on insights from government executives and technology decision‑makers around the world, the report examines where targeted digital initiatives are already delivering value, and where ambition continues to outpace execution. It also addresses the barriers to scaling — including governance, talent constraints, data maturity, and organisational silos — underscoring the importance of clear strategy, trusted partnerships, and a human‑centric approach to unlock sustainable impact and long‑term public value.

      Key findings from our research



      KPMG Global tech report 2026: Government and public sector

      Continuing on the journey of smart technology transformation


      The ambition within the public sector to transform through technology is evident. There's a clear opportunity to build robust tech ecosystems and data foundations. By doing so, governments can drive meaningful digital transformation, deliver better services, and ultimately make a greater impact for citizens and businesses.

      Chi Sum Li

      Head of Government & Public Sector
      Hong Kong SAR

      KPMG China


      Our report reveals a dilemma: nearly half of governments plan large-scale AI deployment, yet 43% face scaling roadblocks. AI-related risks demand a robust and proactive approach to risk management. This will require developing new skills, particularly in managing AI agents, balancing rapid adoption with secure, ethical deployment and continuous skill development.

      Stanley Sum

      Head of Technology Consulting
      Greater Bay Area

      KPMG China

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      Contact us

      Chi Sum Li
      Chi Sum Li

      Head of Government & Public Sector

      Hong Kong SAR

      KPMG China

      Stanley Sum
      Stanley Sum

      Head of Technology Consulting

      Greater Bay Area

      KPMG China


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