This article was first published in the September 2025 issue of the Public Sector Journal, thanks to Hāpai Public.
Governments around the world are grappling with a common challenge: not just executing large-scale initiatives or investing in infrastructure, but fundamentally transforming how public services are delivered. The latest Deloitte Government Trends report calls for governments to become more agile, responsive, and equipped to meet the complex demands of the modern world.
Since 2019, the Deloitte Centre for Government Insights has published annual reports looking at global public sector trends with the aim of helping governments solve complex problems. This year’s report builds on previous themes, such as cost-efficiency and value creation, with a sharper focus on delivery. Key trends include:
These challenges are not unique to any one country. While some governments are deploying new tools and methods to meet them head-on, others are still struggling to gain traction.
For New Zealand’s public service, many of these trends will feel familiar. They align closely with current government priorities and the Public Service Commissioner’s direction. But in a sector marked by complexity and competing demands, the question remains: How can we accelerate delivery and change?
One of the most compelling aspects of the report is not just the trends themselves, but the practical tools and approaches governments are using to deliver results.
In developing AI capabilities, many governments are taking an employee-led approach in building workforce fluency, implementing agentic AI (AI that can make decisions and perform tasks without human intervention), and establishing governance frameworks to balance innovation with public sector responsibilities.
Governments have successfully scaled certain delivery mechanisms, such as shared services, citizen portals, and consolidated procurement platforms. Deloitte refers to these as 'solved and safe', which translates to ‘technically demanding but well understood’.
However, emerging opportunities like agentic AI, advanced automation, and AI-augmented public sector roles require more experimentation and learning. These areas demand agile approaches and a willingness to test, adapt, and iterate.
Global experience highlights several strategies that enable governments to deliver at pace:
International examples can sometimes feel distant or difficult to replicate, especially given New Zealand’s resource constraints. But the imperative is clear: citizens expect more, and government direction supports change.
Cross-sector challenges, such as housing affordability and community wellbeing, require new ways of working. The report highlights tools for solving these complex problems, some of which are already being tested here:
Crucially, governments must capture success, learn from it, and adapt delivery models in real time. Agile, iterative improvement is key to scaling new methods across the public sector.
Each delivery tool contains a method set that can be adapted across central and local government in New Zealand. If the Government Trends report tells us anything, it’s that the countries we proudly compare ourselves to are moving with pace and purpose. For the benefit of our citizens, we must do the same.