Unlocking Tomorrow:

A playbook that explores the power of agentic AI for the Public Sector

Unlocking Tomorrow: A playbook that explores the power of agentic AI for the Public Sector
  • Insight
  • November 04, 2025

Agentic AI holds the potential to deliver significant benefits across almost every industry, with the public sector poised to be among the greatest beneficiaries. Public sector organisations are under constant pressure to deliver more and better services with fewer resources, making AI a clear priority for achieving these goals.

Alex Yankovski, Partner, Public Sector Leader, PwC in Ukraine

“Agentic AI is enabling Ukraine’s government to rethink how citizen-focused services are delivered - automating complex workflows, providing AI-driven public services, and ensuring that limited people resources are used where they matter most, especially in the context of war, when Ukraine faces unprecedented challenges and threats. By innovating in digital infrastructure and strategic cooperation, Ukraine is setting a new global standard for public trust and economic resilience through agentic AI.”

Alex Yankovski, Partner, Public Sector Leader, PwC in Ukraine

Public sector entities are transitioning to models of 'intelligence on demand,' where humans and AI agents collaborate seamlessly. This journey typically progresses through three stages: AI initially serving as an assistant, then evolving into a digital colleague, and ultimately, with humans setting objectives and providing oversight while agents execute complex processes. This profound transformation is both technological and structural, enhancing citizen services, reducing costs, fostering innovative learning and working methods in education, and bolstering national security through advanced cybersecurity and defence.

Leonid Polupan, country manager, Microsoft Baltics and Ukraine

“Agentic AI reimagines public service by putting people at the heart of every interaction. It transforms data and workflows into intelligent, secure, and human centric solutions—giving public servants a trusted ally and residents a seamless, safer experience through life’s milestones. The real impact isn’t more technology—it’s stronger trust, time reclaimed, and meaningful improvements that touch everyday lives.”

Leonid Polupan, country manager, Microsoft Baltics and Ukraine

As public sector organisations integrate AI agents into their operations, they can make noticeable improvements to their workflows. Governments will be able to deliver faster, more responsive, more efficient and more valuable services to businesses, citizens and other constituents.

Valeriya Ionan, Advisor to the First Deputy Prime Minister of Ukraine, former Deputy Minister of Digital Transformation (2019-2025)

“Ukraine sees AI as an opportunity for an economic leap, greater competitiveness, and radically more efficient governance. It is also driving sectoral transformation to make our society AI-ready across every domain — from govtech, edtech and medtech to defence tech, where AI is existential for us in resisting russian aggression. Today, Ukraine is moving from the Digital State to the Agentic State. This shift is not just about Ukraine — it is a historic opportunity for other governments as well. Every delay in adopting technology has made states slower, more expensive and less relevant. For the first time, AI enables governments not to chase the market but to redesign themselves — moving from reactive models to proactive systems. Those who act now will not simply adopt another tool; they will redefine and even reinvent the way government works. What makes this moment unique is that the leap is available to all. Governments with mature digital infrastructure can convert it into AI-driven services and gov products, while those that never fully digitalised can skip some stages and build directly on agentic logic from day one. AI does not widen the gap — it opens a window for a simultaneous leap.”

Valeriya Ionan, Advisor to the First Deputy Prime Minister of Ukraine, former Deputy Minister of Digital Transformation (2019-2025)

Building a Solid Foundation for Agentic AI

Before fully realising the benefits of agentic AI, public sector organisations must establish a robust foundation that supports their responsibility of care for constituents. This means addressing critical building blocks, including:

  • Ensuring IT infrastructure is fit for purpose, with modern cloud systems and robust cybersecurity.
  • Prioritising data privacy and security issues.
  • Fully addressing ethical concerns to build public trust.

Our earlier paper, "How to Deploy AI at Scale," explores the critical role of cloud and cybersecurity, outlining essential steps for integrating AI and Generative AI (GenAI) into everyday operations. Continuous monitoring and adaptation of AI systems are equally vital to meet evolving business and security challenges, ensuring widespread acceptance and successful implementation.

PwC's industry knowledge and Microsoft's technology can help public institutions throughout this process, enabling them to respond to today’s challenges while preparing for tomorrow’s opportunities.
 

Ready to Shape the Future of the Public Sector?

Discover how PwC's strategic collaboration with Microsoft helps organisations leverage AI agents as critical assets to support innovation, increase efficiency, automate workflows, and transform operations and citizen services.

Are you ready to shape the future of the public sector?

Download the playbook to explore expert insights, real-world applications and a clear strategy for scaling agentic AI to help your organisation lead the next wave of public sector transformation.

Contact us

Alex Yankovski

Alex Yankovski

Partner, Public Sector Leader, PwC in Ukraine

Tel: +380 44 354 0404

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