Note: This article was last updated on September 3, 2025, to ensure all information is up-to-date.
Key Takeaways
- Rising expectations, falling trust: Citizens increasingly want digital, self-service, and seamless government interactions, yet most public sector agencies still lag far behind the private sector.
- User experience as a trust builder: Satisfied citizens are up to 9x more likely to trust government institutions when digital services are straightforward, equitable, and secure.
- Content chaos hurts delivery: Nearly half of government employees struggle to find the information they need, making better content management essential for both employee engagement and citizen satisfaction.
- Technology as a catalyst: Cloud, AI, and integration of legacy systems are no longer optional – they are critical levers for driving digital modernization, improving service delivery, and unlocking innovation.
- Citizen-centric transformation: Governments that invest in human-centered design, emerging technologies, and cross-agency collaboration can deliver better everyday experiences, build trust, and achieve stronger outcomes for communities.
Why Modernizing Citizen Experience Matters More Than Ever
The Public Sector has been facing increasing pressure to modernize its digital services and offer seamless service delivery to engage a broader, more tech-savvy audience. This includes federal, state, and local governments, all working to improve citizen satisfaction and increase engagement with public institutions. Modern citizen experience, the overall perception and collection of interactions a citizen has with government services, plays a crucial role in shaping satisfaction and trust in public institutions. It includes a mix of advanced technology, such as digital self-service platforms, and essential human-centric interactions. What should the public sector consider in the near future regarding the digitalization of citizen experiences?
Spoiler alert: These stats lead to the strategic priorities for delivering better services, increasing citizen satisfaction, operating more effectively, achieving better outcomes, and regaining public trust.
Citizen Expectations are Set By Consumer Experiences
Government organizations, constrained by budgets and limited tech talent, are challenged more than ever to provide services in a manner that meets the expectation of the citizen consumer. Understanding customer journeys is essential for government organizations to meet rising expectations. User research is a critical tool for identifying citizen needs and expectations, helping agencies apply human centered design principles to craft services that truly align with user preferences.
1. 40% of consumers now prefer self-service over in-person services. SuperOffice
2. 73% of customers prefer to use a company’s website, instead of using social media, SMS and live chat for support. SuperOffice
3. 75% of buyers prefer virtual interactions and a more self-service approach, highlighting the need for agencies to identify key citizen needs and expectations to improve service delivery. Insight Brief
Failing to Meet Citizen Expectations
Despite efforts to digitize, citizens still feel underserved by current experiences – and since public trust is directly tied to digital service quality, the gap remains significant. For the federal government in particular, closing this gap is essential to rebuild trust at scale. A proactive customer experience (CX) strategy is essential to building and maintaining public trust. McKinsey research suggests that when government services are seamless, straightforward, secure, and equitable, citizens notice. In fact, satisfied citizens are nine times more likely to say agencies achieve their mission and nine times more likely to place their trust in them.
4. 60% of citizens have a strong preference for digital channels. McKinsey
5. 81% of government agencies aim to become digital organizations. CGI
6. 70% of managers at government organizations believe their citizen experience (CX) is on par with the private sector, while constituents rank government last among ten sectors. Deloitte
7. 61.9 of 100 is the average score of 15 US federal agencies and programs analyzed in Forrester's Customer Experience Index (CX Index™), making federal customer experience the weakest among the 13 verticals studied. Forrester
8. 98% of respondents expressed the need for government agencies to prioritize top-tier user experiences. Springbrook
These numbers clearly point to the ongoing need for improvement in digital government services, especially for federal agencies that often lag behind the private sector in meeting citizen expectations. Gathering and analyzing customer feedback is crucial to identify pain points and drive continuous improvement in service delivery. Transparent feedback mechanisms and clear communication increase government accountability by demonstrating that citizen input is valued and acted upon.
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Prioritize User Experience for Maximum Impact
Often ranked last compared to other sectors, governments must make citizen experience a strategic priority. People increasingly expect not just digital, but consistent omni-channel service – including ‘no wrong door’ policies that allow citizens to start processes on one channel and complete them on another without repeating information. Providing such seamless and frictionless experiences across multiple services is crucial to meet today's citizen needs and directly enhance customer experience across government touchpoints.
9. 46% of citizens say they would be more likely to use digital technology to access government services if the technology was easier to use. Accenture
10. 67% of respondents say ease of interaction is most important when accessing online government services. Accenture
11. 53% of survey respondents in 2022 said accessing public services is frustrating. Accenture
12. Only 36% of citizens find government processes and interactions intuitive. Accenture
13. 65% of citizens prefer to interact with government services through multiple channels, including online, in-person, and over the phone. McKinsey
14. 48% of public sector executives have pursued increased citizen value as a key organizational goal, while 45% have pursued faster time-to-market for new services. Accenture
15. Customer experience can decrease the risk of negative coverage of state agencies by up to 75 percent. McKinsey
16. 70% of government CIOs will increase investments to produce and measure positive citizen experiences as a critical business outcome by 2026. Gartner
Lack of Efficiency in Content Management Contributes to Lower Citizen Satisfaction
At the heart of many citizen frustrations lies a surprisingly simple problem: inefficient content management. Public sector organizations often juggle vast amounts of policies, forms, manuals, records, and service information, yet much of it is disorganized, duplicated, or outdated. The result? Employees struggle to find the right content, and citizens are left with incomplete or inconsistent answers.
17. 49% of government workers report difficulty in locating information at work. This causes frustration among public employees and hinders their ability to provide good citizen service.
Improving content management can boost employee satisfaction and employee engagement, leading to better organizational performance and increased public trust. Effective content management and digital platforms also enhance communication between government employees and citizens, ensuring timely and accurate information exchange. Nintex
18. 54% government workers cannot find the information they need when they need it. The content is often disorganized, outdated, and scattered across multiple websites. CGI
Improving content management isn’t just an internal efficiency play. It’s a strategic lever for citizen satisfaction. Modern digital platforms with centralized repositories, metadata tagging, and role-based access can ensure that the right version of every document is accessible, searchable, and usable across all channels. This helps create seamless, timely, and accurate interactions, boosting both public trust and employee confidence.
Driving Innovation and Improving Citizen Service
Agency collaboration and operational transformation are now recognized as key drivers for accelerating digital innovation and improving citizen experience. But true digital innovation in the public sector isn’t just about adopting new tools. It’s about how those tools – from cloud to emerging technologies like AI – transform the way citizens experience services every day. From applying for permits to accessing healthcare or paying taxes, people expect government interactions to be as seamless, secure, and personalized as the apps they use in their daily lives.
"The potential we have here is immense. We finally have a service that removes friction from the way data is provided and accessed across government, enabling a simple flow of analysis into policy evaluation and development – putting us on the front foot to solve pressing challenges.”
Alison Pritchard, Deputy National Statistician and Director General for Data Capability at the Office for National Statistics [via government-transformation.com]
The good news? More and more governments are investing heavily to close this gap, for example by building on platforms to accelerate digital services transformation and support secure, transparent, and high-quality service delivery across agencies.
19. According to Gartner more than 80% of government digital implementations that do not build on a technology platform will fail to meet objectives. Gartner
20. Government spending for IT consulting and managed services is expected to increase from $150 billion USD in 2022 to over $200 billion in 2026. Gartner Predicts 2023: Governments Heighten Focus on Mission Impact Amid Global Uncertainties.
21. By 2025, 95% of new IT investments made by government agencies will be made in XaaS Solutions. Gartner
22. Over the next five years cities globally plan to prioritize using a digital platform. 70% plan to use a digital platform to address multiple citizen needs through one personalized interface. Deloitte
Innovation in the public sector doesn't have to be an abstract goal, but rather a means to create better everyday experiences that boost satisfaction, trust, and outcomes for communities. Providing resources such as guides, tools, and support materials is essential to help agencies successfully implement innovative initiatives and broader digital modernization programs.
Facing Internal Challenges to Growth
Public sector cultural barriers and budget constraints are two major problems that government leaders must address, as they directly affect the effectiveness and long-term viability of transformation projects. To overcome these challenges, a focused transformation strategy is essential, ensuring that leaders prioritize improvements where citizen outcomes are most impacted and resources can deliver the highest return. Ongoing research and data analysis are crucial for informing these strategies and evaluating their impact on citizen experience.
23. McKinsey & Company estimates that around 70% of transformation projects fail. McKinsey
24. 47% of government CIOs indicate organizational culture is the biggest barrier to scaling digital transformation. Gartner
25. By 2026, governments will increase spend on external IT service providers by at least 25% to counterbalance internal talent scarcity. Gartner Predicts 2023: Governments Heighten Focus on Mission Impact Amid Global Uncertainties.
26. 67% of government organizations are pursuing transformation yet, because of inflexible business models, only 5% succeed. Gartner
27. Worldwide IT spending is expected to grow 7.9% in 2023. Gartner
Cloud Reaches New Heights in the Public Sector
Secure public clouds give public sector organizations more flexibility, improved agility, and lower costs. Cloud adoption also improves access to digital government services by enabling secure and streamlined entry for citizens, agencies, and service providers – a priority area for many federal agencies modernizing their IT infrastructure. The benefits of cloud for public institutions and organizations include increased efficiency and greater financial savings. In addition, digital payment systems enable governments, individuals, and businesses to transact securely and easily.
28. 70% of state and local government executives highlighted that cloud is their preferred environment for hosting citizen and mission data. Deloitte
29. 83% of public sector leaders see cloud as essential to drive innovation and enable new business models. Accenture
30. 82% agree that cloud tools have made technology usable by most employees. Accenture
31. 87% believe technology accessibility by common employees, due to the cloud, is an important catalyst in driving innovation across their organizations. Accenture
32. 57% of public service leaders believe that it is business critical to accelerating cloud adoption. Accenture
33. 70% of companies will employ hybrid or multi-cloud management technologies, tools, and processes. McKinsey
34. 94% of public sector leaders consider cloud adoption important for the future, with early adopters citing improved system resilience, interagency collaboration, and enhanced digital experiences. Centralsquare
35. 64% of public sector leaders cite disaster resilience – keeping critical systems live during emergencies – as the top benefit of cloud adoption. Centralsquare
AI as a Catalyst for Smarter and More Efficient Government
Artificial intelligence (AI) is quickly becoming a cornerstone of public sector transformation. For governments under pressure to deliver faster, smarter, and more citizen-centric services, AI offers a way to improve efficiency, reduce costs, and personalize interactions at scale.
Here a some of the ways AI provides benefits to government agencies:
| AI Application | Benefit to Government & Citizens |
|---|---|
| Automating Routine Processes | Improves efficiency and reduces costs, freeing up limited resources. |
| Predictive Analytics | Allows agencies to anticipate and address citizen needs proactively. |
| Chatbots | Reduces call-center bottlenecks and provides instant, 24/7 support. |
| Personalized Services | Creates more accessible and equitable services at scale. |
| Automated Workflows | Streamlines processes like licensing and benefits management. |
“We are using AI to build the foundations of a more personalised service provision.”
Ott Velsberg, Estonia’s Chief Data Officer [via government-transformation.com]
If you look closely at these numbers, the momentum is clear:
36. By 2026, more than 70% of government agencies will use AI to enhance human administrative decision making and measure resulting productivity increases achieved. Gartner
37. 64% of government executives acknowledge that AI adoption could lead to significant cost savings. EY
38. 63% of government executives see AI's potential to enhance service delivery. EY
39. Up to 33% of daily tasks in the public sector could be performed by generative AI. Publicfirst
40. 80% of public leaders believe AI will positively impact their jobs. SmartDev
41. The global citizen services AI market – which covers the use of artificial intelligence to improve how governments deliver services such as licensing, benefits management, healthcare, and public safety – was estimated at USD 9.32 billion in 2023 and is projected to grow at a CAGR of 44.4% from 2024 to 2030. Grand View Research
But AI’s role goes beyond operational efficiency. It is key to creating more personalized, accessible, and equitable services – and, as one of the most impactful emerging technologies, it has the power to fundamentally reshape how governments engage with their citizens. Whether it’s chatbots that reduce call-center bottlenecks, predictive analytics for public health, or automated workflows for licensing and benefits, AI is transforming how public services are delivered.
In short, AI adoption isn’t optional – it’s strategic. Agencies that integrate AI into their digital transformation strategies will be better positioned to rebuild public trust, deliver seamless citizen experiences, and make smarter use of taxpayer resources.
Modernize Legacy Applications or Create Modern Experiences Through App Integration? Yes to both.
Legacy tech and the lack of integration in the public sector IT ecosystem remains a barrier to driving innovation. Government leaders play a crucial role in championing modernization and integration initiatives to improve operational efficiency and citizen experience. The key is not just upgrading systems, but ensuring those upgrades translate into better experiences for citizens. That’s why mapping the customer journey becomes essential. It highlights the touchpoints where modernization and integration will have the biggest impact. When integrating new applications, mapping the customer journey is essential to identify key touchpoints and prioritize areas for improvement.
Here's an overview of the challenges public sector organizations face with regard to the integration of legacy tech:
| Challenge | Strategic Approach |
|---|---|
| Outdated Legacy Systems | Replace where possible to reduce maintenance costs and improve efficiency. |
| Siloed IT Ecosystems | Use modern integration technologies to create seamless, citizen-first experiences. |
| Lack of Integration | Layer new applications on top of existing systems to preserve mission-critical functions while delivering modern experiences. |
Consequently the question for governments isn’t whether to modernize or integrate – it’s how to do both in balance.
42. 80% of government IT spending is on operating and maintaining legacy systems. GAO
43. At the same time, 51% of citizens would increase use of government services if offered an integrated portal. Accenture
That’s why the smartest approach is twofold: replace outdated systems where possible while layering modern integration technologies to create seamless, citizen-first experiences.
Forward-looking agencies are already making the shift:
44. 43% of Governments will invest in integration technologies and APIs in 2023, which reinforces that managing a complex, diverse, siloed IT ecosystems are still a major obstacle to transformation. Gartner
45. By 2025, 35% or more of government legacy applications will be replaced by solutions developed on low-code application platforms. Gartner Predicts 2023: Governments Heighten Focus on Mission Impact Amid Global Uncertainties.
46. 84% of public sector respondents in a 2023 Deloitte survey have recently invested in integrated technologies. Deloitte
Crucially, modernization and integration are not just technical projects – they’re experience projects. Mapping the citizen journey helps agencies prioritize which touchpoints need to be modernized first and where integration can have the biggest impact on service delivery. Feedback from both citizens and employees provides the insights needed to align tech investments with real-world needs.
The result: a more resilient IT ecosystem where governments can preserve mission-critical systems while still delivering the modern, frictionless digital experiences citizens expect.
Citizen Centric Innovation
The Public Sector is still far behind other verticals, but like the others before them, customer experience remains as one of the most strategic areas of growth. The last few years, with social evolution towards more digitized societies, the push for online services due to the pandemic, and the need to be more efficient in economically challenging times, are putting pressure on public sector organizations to digitize as soon as possible. Providing efficient and personalized services builds trust by showing that public funds are used responsibly. Digital transformation benefits individual users by providing more secure and efficient access to government service, making it easier for citizens to interact with government programs and receive essential services.
Will government agencies be able to carry out this ambitious challenge on their own? Most, whether by necessity or by choice, choose to manage it alongside IT service partners and technology vendors that bring experience in solution development and project implementation in both the public and private sectors.
When citizens trust their governments more, there are many benefits. Digital transformation also has a significant impact on local communities, enabling governments to deliver tailored services that foster stronger engagement and support regional development. Collaboration with IT service partners helps build trust in government by ensuring transparency and delivering user-centered solutions.
The transformation of citizen experience has begun all over the globe and these statistics show that it’s not slowing down. Improving customer experience is now a key driver for innovation in government service, helping agencies better meet the needs of citizens and achieve better outcomes.
