Artificial Intelligence is moving from experiment to execution in Europe’s public sector. Unlike private firms, public administrations serve entire populations. Even modest efficiency gains can ripple across millions of lives. AI can reduce waiting times for hospital care, automate routine paperwork, and help detect tax fraud—freeing resources for higher-value tasks.
A new report, The Opportunity for AI to Enhance Public Sector Services, developed under the StepUp Startups project, shows how AI can become a cornerstone of modern governance—if Europe gets implementation right.
DEEP Ecosystems is proud to be a key partner in the StepUp StartUps project, a European Commission-funded initiative aimed at reshaping Europe’s startup ecosystem. Together with Barrabes, Leibniz IRS, Startup Europe Regions Network (SERN), and EU Startups, DEEP is spearheading a two-year journey to develop data-driven insights, conduct research, and organize events to inform policy transformation.
The primary objective of StepUp StartUps is to provide a comprehensive understanding of the functioning of national and local startup and scaleup ecosystems across the EU-27 and EFTA countries. This knowledge will inform the development of data-driven policy reports on key issues and challenges facing Europe’s startup ecosystem.
The Adoption Picture: Uneven Progress
More than a third of EU public administrations reported using AI in 2024, but progress is highly uneven. Northern and Western Europe are leading adoption (45%), while parts of Southern and Eastern Europe (25%) remain constrained by funding, skills shortages, and digital infrastructure gaps.
Concrete Use Cases Already at Work
- Healthcare innovation: Estonia’s predictive models help flag at-risk patients before emergencies arise.
- Smarter taxation: Spain and Denmark use AI to identify fraud and simplify compliance.
- Citizen-facing AI: Chatbots now handle millions of questions once directed to call centers.
- Justice system efficiency: Courts are experimenting with AI-powered document analysis to cut case backlogs.
Why Europe Has a Unique Advantage
Rather than slowing progress, Europe’s regulatory guardrails on privacy, transparency, and accountability can actually enhance trust. Citizens are more likely to accept AI-enabled services when they know safeguards are strong. Initiatives like AI Factories and digital public infrastructure provide a foundation to scale responsibly.
AI is no longer a peripheral experiment for governments—it is fast becoming essential to deliver efficient, equitable, and citizen-centered services. Europe now has the opportunity to lead the world in showing how AI can strengthen—not undermine—trust in public institutions.
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We invite you to participate in discussions that will shape the future of EU innovation. By joining our network, you can contribute to the development of supportive policies and initiatives for startups and innovators across Europe. DEEP is a group of industry leaders who inspire us to explore new trends and policy needs. Join our network to collaborate on data, exchange insights, connect with key players, and share your own perspectives.
The project is funded by the tender of the European Commission on “European Start-ups 2.0 – Taking Europe’s start-up economy to the next level through data-driven insights, research and events” with number CNECT/2022/OP/0133. Views and opinions expressed are however those of the authors only and do not necessarily reflect those of the European Union, European Commission or the Council of Europe. Neither the European Union nor the granting authority can be held responsible for them.