A $10 trillion question: Can governments keep up in the Intelligent Age?

Citizens expect more from their governments today. As public trust wanes and people grow accustomed to the speed and convenience of private-sector innovation, the machinery of governance too often feels slow, opaque and inefficient.

Enter GovTech – a transformative force with the potential to enable governments to be more transparent, efficient and sustainable.

This burgeoning sector, which applies cutting-edge technology to public administration, represents an opportunity to transform government itself.

A report released today under the World Economic Forums’ GovTech Network and in collaboration with Global Government Technology Centre Berlin and Capgemini estimates that GovTech could deliver nearly $10 trillion in public value by 2034.

It’s not just about modernizing outdated bureaucracies; it’s about reimagining what governments can do in a digital world.

GovTech – short for government technology – isn’t new. Over the decades, governments have digitized various processes such as online tax filing, digital permitting and electronic voting. However, many of those efforts have been fragmented, isolated improvements.

Today’s GovTech revolution goes deeper. It takes a whole-of-government approach, paired with foundational digital public infrastructure and frontier technologies such as artificial intelligence (AI) and quantum computing, which are set to transform how governments serve their people.

Consider this: Rwanda’s IremboGov platform has digitized over 98 public services, saving citizens an estimated 50 million work hours since its launch. In Brazil, an algorithmic risk assessment tool can help identify fraud and corruption in public contracting, boosting fiscal transparency and trust among citizens.

In Ukraine, the "Diia" platform integrates over 30 government services and key documents into a single digital interface, providing Ukrainians worldwide access to essential government resources.

The Forum’s report estimates that the GovTech market will double from $606 billion in 2024 to $1.42 trillion by 2034. Yet, its significance transcends sheer market growth, offering transformative value to society by addressing three critical areas:

Governments aren’t always known for moving quickly. Legacy systems, bureaucratic inertia and tight budgets have left many struggling to match the pace of technological innovation.

Many governments still rely on outdated, fragmented infrastructure that wasn’t designed for today’s digital demands. Overhauling them can be expensive, time-consuming and politically fraught.

Meanwhile, public expectations continue to rise. Citizens now expect government services to work more seamlessly, intuitively and instantaneously.

Failing to meet those expectations isn’t just a missed opportunity; it’s a risk. When governments lag, gaps widen – between rich and poor, urban and rural, connected and disconnected. As governments continue their digital transformation journeys, they must take concerted action to close these divides and ensure no one is left behind.

As the Forum’s report underscores, the digital transformation of government is not merely an upgrade – it requires bold action, strategic investments and a willingness to rethink how governments serve their citizens in a connected world. Governments must look beyond piecemeal efforts and be ready to embrace systemic change.

We are at a pivotal moment. As climate change accelerates, economies transition, and societies digitize, governments must decide whether to lead or lag. GovTech offers a chance to reimagine the relationship between citizens and the state, making governments not just faster and more cost-effective but also fairer and more responsive.

The stakes couldn’t be higher. If governments fail to embrace this opportunity, the cost won’t just be measured in dollars – it will be measured in trust, social cohesion and the resilience of institutions. If governments embrace GovTech, they can lead the way into the Intelligent Age, transforming public systems into models of innovation and inclusivity.

This is the future of government. Let’s build it.