We recently published the second edition of the Digital Disruption Index. In less than 12 months since we launched the Index, we have witnessed significant shifts in investment in new technologies, with the likes of artificial intelligence (AI), augmented and virtual reality, and blockchain gathering momentum. However, somethings remain consistent.

Public sector leaders continue to worry that not enough school-leavers and graduates have the right mix of digital skills. A staggering 89 per cent say that their talent pool does not have sufficient knowledge and capabilities to deliver their digital strategy.

Leaders lack confidence in their own digital skills

We found that many public sector leaders lack confidence in their own digital skills. Indeed, a significant number indicate that they and other leaders do not receive the support they need to upskill. We believe that personal experience and mindset are key to improving confidence and to shaping digital leadership skills. Leaders should take part in activities and experiences that help them first develop as individuals. This personal development will then translate into effective leadership of their organisations.

Cultural change is central to public sector digital

Public sector leaders overwhelmingly expect digital to have the greatest impact on how they create cultural change across their organisations. They also expect digital to empower and enable their employees. Cost reduction is also high on their digital agenda. In contrast, in the private sector the focus is instead on how digital can be used to create unique customer experiences and to amplify their brand.

Nothing artificial about investment in AI

AI is already having an impact on many organisations with some moving beyond production pilots into large-scale application. Our survey found that 26 per cent of public sector respondents have already invested in AI and a further 47 per cent intend to invest by 2020. However, few senior leaders understand how it will shape the end-to-end organisation, which could present a significant barrier to AI maturing.

Get in touch with me if you would like to learn more about the Digital Disruption Index and how Deloitte supports digital transformation in the public sector.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.