Public Sector Risk

Public sector risk refers to the governance, compliance, and operational challenges that government agencies face when adopting and managing AI systems. These risks span regulatory adherence, data privacy protection, algorithmic bias in citizen-facing decisions, and budget constraints that can limit oversight capabilities. Understanding and mitigating public sector AI risks is critical because government decisions directly affect citizen rights, equity, and public trust in institutions.

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ResearchGlobal2026-08-24

AI Agents Are Flooding Government Benefits Appeals Across 11 Jurisdictions

A peer-reviewed paper presented at the AAAI Conference on AI, Ethics, and Society documents 84 cases where AI agents generated high-volume interactions with government services across 11 jurisdictions. The researchers identify financially complex services such as benefits appeals as the highest near-term risk and map government response options. The study warns that the fastest countermeasures risk creating inequitable access barriers, exposing a compliance tension between operational resilience and public interest obligations.

agentic AI public sector risk AI misuse access equity operational resilience government services third-party AI risk