AI is no longer confined to private companies—it is reshaping how governments serve citizens. A newly released report, The Opportunity for AI to Enhance Public Sector Services, developed under the StepUp Startups project, explores how AI is transforming healthcare, taxation, justice, and citizen services across Europe. Backed by fresh data and case studies, the study highlights adoption trends, regional divides, key challenges such as data protection and skills gaps, and actionable strategies to scale trustworthy, citizen-centered AI in public administrations.