What are the public sector’s digital transformation trends for 2025?
Martin Ryan, Managing Director at Fexco Managed and Advisory Services, examines potential public sector trends in 2025.
As 2025 begins, the Irish public sector will continue to focus on delivering profound digital transformation.
The push continues for increased investment and procurement of modern digital government and public services. These align with strategies like Harnessing Digital: Digital Ireland Framework and Connecting Government 2030, which sees Ireland targeting 90 per cent of applicable public services to be consumed online by 2030, surpassing EU targets.
2024 has seen significant developments in artificial intelligence, with further disruption as the global AI race continues unabated into 2025.
Amid these evolving challenges and opportunities, what are the pivotal trends for 2025, and how can they reshape public service delivery?
Key trends: Building on established foundations
1. Citizen-centric service delivery
We have discussed how the cornerstone of digital transformation lies in citizen-centric design. Public sector organisations prioritise platforms that provide seamless, user-friendly access to services. This approach entails understanding user needs, simplifying service access, and ensuring platform consistency.
Initiatives like the “once-only” principle, where citizens provide information once for reuse across services, enhance efficiency and accessibility. Simplifying processes through standardised frameworks ensures inclusivity while prioritising feedback loops with citizens for continuous improvement.
2. Cybersecurity and regulatory compliance
The increasing complexity of cybersecurity threats demands robust measures; frameworks like NIS2 and DORA mandate ICT risk management and operational resilience to protect critical services.
Our expertise in regulated services and our international financial services footprint can support the public sector to meet these challenges, leveraging our strict adherence to international standards and use of secure, compliant systems.
3. Digital payments and embedded finance
Modernising payment systems is essential for the digitalisation of public finance. Embedded finance solutions simplify financial processes for citizens and governments alike, such as the use of corporate payment solutions from CBI regulated entities.
Our four decades of expertise in these areas ensure secure, efficient, and user-friendly payment experiences, contributing to the broader digital transformation goals.
Big trends for 2025: New frontiers
1. Widespread adoption of AI in public sector services
Artificial Intelligence emerged as the hot topic of 2024, but adoption was primarily evidenced by pilot projects and early industry movers. 2025 may be the year of widespread adoption of AI in public sector services but only successful if AI services are designed and built with safety, governance, and accuracy at their core.
AI can redefine public sector operations and are pivotal in managing growing service demands without inflating costs.
Solutions like Fexco’s generative AI service SmartAssist integrates Artificial and Human intelligence, enhancing service delivery, increasing efficiency, and simply “making life easier” for all users, including colleagues and citizens, all the while staying firmly within the guardrails of the guidelines for the safe use of AI in the Public Service. Queries on Fexco’s SmartAssist services should be directed to Ailish Hansen [ahansen@fexco.com].
2. Public-private partnerships
Collaboration between the public and private sectors is accelerating innovation, and 2025 is predicted to see new public-private partnerships emerging to deliver new solutions, services, and experiences to the ultimate benefit of Irish society. These partnerships will combine technological expertise, operational efficiency, and investment to enhance public services.
At Fexco, partnerships are more than just a term; they are a core value that has driven our success for over 40 years. We are incredibly proud of the trusted partnerships we have developed with some of the most impactful organisations in Irish society, such as The PrizeBonds Company, which is a 50:50 joint venture between An Post and Fexco, contracted by the National Treasury Management Agency (NTMA) to operate the Prize Bonds Scheme and has been operating since 1989.
Our experience in co-creating tailored solutions highlights the transformative potential of such collaborations. For instance, our strategic partnership with the Sustainable Energy Authority of Ireland (SEAI) has moved beyond traditional service delivery to a value-driven, trusted partnership focused on balancing the correct blend of people, process and technology solutions to contribute to a more sustainable future for us all. This partnership between SEAI and Fexco was recognised in November 2024 by winning the coveted CCMA Outsource Partnership of the Year award.
Through these partnerships, Fexco demonstrates how collaboration can enhance citizen and business engagement amid pervasive digital disruption, ultimately delivering superior public services.
Conclusion
The digital transformation trends for 2025 reflect Ireland’s ambition to lead in delivering efficient, inclusive, and transparent public services. While the potential benefits are immense, maintaining alignment with citizen needs is paramount.
Practical implementation strategies, such as prioritising feedback, embracing agility, and fostering collaboration, will be critical. With forward-thinking organisations like Fexco driving innovation, the Irish public sector is poised to build a digital future that meets the expectations of a modern, engaged society.
Ireland’s digital transformation journey is a bold step towards an inclusive and sustainable future. The sector has ambitious targets aligned with government plans. As demands increase, how will the public sector achieve these goals while balancing the growing impact of AI in 2025? The public sector can navigate evolving challenges while delivering impactful services by focusing on user-centric design, embracing advanced technologies, and fostering collaboration.
Overall, the big trend for 2025 underscores the importance of balancing technological innovation with human needs. The groundwork laid today will shape a thriving digital society for years.
W: www.fexco.ie
