Dive Insight:Digital interactions account for around 70% of all resident engagement, up from 62% two years ago, according to the survey. Perceptions of public sector digital services benefits — including time saved, getting better results and having a better experience — all plunged by double digit percentage points. “As AI adoption accelerates, building trust with residents must be designed directly into the citizen experience from day one,” Reilly said. The top three AI use cases public sector respondents gave in the survey included answering resident questions or resolving issues, resident segmentation and targeting and analyzing data. As many as 45% of public sector leaders report using generative AI regularly, according to the survey, which was conducted between April and May 2026.