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Across jurisdictions, the underlying government operating systems—the rules, workflows, decision rights, and learning loops that shape performance—are being rewritten for an accelerating environment.

Historically, governmental improvement has been incremental, marked by reform initiatives, modernization efforts, and successive waves of digitization. Each delivered progress, adding up over time. However, today’s operating environment no longer supports gradual change.

Rapid advances in artificial intelligence, tightening fiscal constraints, workforce demographics, and risks that cascade across interconnected systems are accelerating external pressures. The pace of change outside government is accelerating; government’s internal architecture often is not.

As a result, traditional cycles of reform—no matter how well-conceived—struggle to match the pace of external developments. Merely integrating new technology into outdated processes seldom yields lasting impact.

Forward-thinking governments are responding differently—adopting new approaches by pairing AI and digital capabilities with simplified rules, redesigned workflows, and adaptive operating models built for continuous learning.

There are clear signals that this future is already arriving:

  • Deloitte’s Government Trends 2024 identified more than 200 global cases in which agencies delivered quantum-leap improvements—up to tenfold cost reductions or 90% cycle-time cuts—alongside major gains in mission outcomes.1
  • In Australia, New South Wales has built a spatial digital twin that integrates 3D, 4D, and real-time data across more than 1,000 data sets, giving agencies and councils a shared environment to monitor assets, run scenario simulations, and support infrastructure and emergency-response decisions.2
  • A UK government-led trial, involving more than 20,000 civil servants using generative AI tools for a three-month period, resulted in self-reported average daily time savings of 26 minutes, equivalent to nearly two working weeks per person per year.3

These examples are not simply digitization stories. They reflect a different operating rhythm. Agencies improve in weeks rather than years—without waiting for crisis-driven permission.

The core lesson in the AI era is clear: The biggest gains come not from automating old processes, but from redesigning the work itself. Simplifying rules. Redesigning workflows around outcomes. Configuring teams and governance so that advanced technologies are scaled responsibly.

Government Trends 2026 maps the contours of this shift. Across eight trends, we examine how AI, new delivery models, and new ways of organizing are reshaping the fundamentals of government: service delivery, regulation, procurement, technology leadership, ecosystems, talent, decision-making, and organizational structure.

A new operating reality for government

Many of the governments making the most progress are not just adopting new tools or reorganizing org charts. They are upgrading the underlying operating system that determines how work flows, decisions are made, risks are managed, and improvements endure.
In the AI era, this operating system will be more consequential than any single technology. It determines whether new capabilities scale or stall, whether learning compounds or resets, and whether performance gains survive and persist. Agencies that modernize only on the surface may find that old constraints reassert themselves. Those that change the operating system underneath can see durable gains in speed, quality, and outcomes.4

Five layers shaping the future of government

Across these trends, five operating system layers recur (figure 1).

Rules and governance: The logic layer

Every agency runs on formal and informal rules that determine what is allowed, who decides, and how risk is managed. Over time, rules accumulate, adding friction even where policies and law allow flexibility. Leading governments are simplifying decision rights, removing unnecessary approvals, rewriting requirements in plain language, and translating policy into structured, machine-readable forms. Safeguards are embedded directly into workflows rather than layered on through manual review.

Teams and talent: The execution layer

Transformation succeeds or fails at the level of effective teams. Technology creates real value when work is redesigned around outcomes.5 Rigid roles and static structures give way to mission-driven teams that combine human judgment with AI-enabled analysis. Teams now form based on skills instead of job titles, making ongoing learning an essential part of the process.

Platforms and data: The infrastructure layer

Modern government runs on shared digital foundations. Fragmented systems and siloed data keep innovation isolated and costly to scale. Leading organizations invest in interoperable platforms, common services, application programming interfaces, and reusable components that can be recombined across missions. Capabilities are reused rather than rebuilt, allowing innovation to compound.

Partner ecosystems: The interface layer

Governments no longer deliver outcomes alone. Private firms, nonprofits, and civic organizations provide essential capabilities.6 Simplified rules of engagement and shared digital interfaces can reduce friction and expand participation. The focus shifts from simply managing individual contracts to stewarding ecosystems that evolve with changing needs.

Feedback loops: The learning layer

High-performing organizations embed learning directly into operations. Real-time data makes performance visible as work happens. Policies and services adjust based on evidence rather than anecdote. Continuous feedback shifts reform from episodic to sustained adaptation.

By

William D. Eggers

United States

Beth McGrath

United States

Jennifer J. Walcott

United States

Endnotes

  1. William D. Eggers, Beth McGrath, and Jason Salzetti, “The eight trends propelling the 10x government of the future,” Deloitte Insights, March 24, 2024.

  2. NSW Government, “NSW Spatial Digital Twin,” February 2020.

  3. UK Government, “Landmark government trial shows AI could save civil servants nearly 2 weeks a year,” press release, June 2, 2025.

  4. Lou DiLorenzo Jr., Anjali Shaikh, Michael Caplan, and Erika Maguire, “The great rebuild: Architecting an AI-native tech organization,” Deloitte Insights, Dec. 10, 2025.

  5. C. Vijayakumar, “Invest in the workforce for the AI age: A blueprint for scale, skills, and responsible growth,” World Economic Forum, Jan. 22, 2026. 

  6. William D. Eggers and Donald F. Kettl, Bridgebuilders: How Government Can Transcend Boundaries to Solve Big Problems (United States: Harvard Business Review Press, 2023).

Acknowledgments

The authors express their gratitude to Nicole Savia Luis, Aniruddha Bapat, and David Noone from the Deloitte Center for Government Insights for their invaluable operational and research support.

This report owes its publication to the dedicated support of the Deloitte Insights team. The authors would like to acknowledge Kavita Majumdar, Rupesh Bhat, Stacy Wagner-Kinnear, Aparna Prusty, Shyamili M, Anu Augustine, Cintia Cheong, and Pubali Dey for their editorial contributions. They would also like to thank the following members of the visual and design team for their artwork and data visualizations: Jim Slatton, Sonya Vasilieff, Meena Sonar, Molly Piersol, and Harry Wedel.

The author team extends their gratitude to various members of Deloitte’s Government and Public Services global leadership and account teams for their insights, feedback, and continued support, including Liam A. Davies, Christopher Hamilton, Sean McClowry, Allan Mills, Tom Pickthorn, Shanley Vetter, Phoebe Baker, Mason Chin, and Duke Wu.

Finally, the author team would like to thank the GPS marketers, Shane O’Hagan, Leslie Wolf, Neelangana Noopur, Adina Preiss, and Zishan Ali, for their support in promoting Government Trends 2026 across various geographies.

Editorial (including production and copyediting): Kavita Majumdar, Rupesh Bhat, Aparna Prusty, Anu AugustineCintia Cheong, and Pubali Dey

Design: Molly Piersol

Cover image by: Meena Sonar and Sonya Vasilieff

Knowledge Services: Agni Wagh

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