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Governing with AI: Future-ready policy decisions need adaptive systems

02 Jul 2025
2 min

Artificial Intelligence in Governance and Policymaking

Artificial Intelligence (AI) holds the potential to significantly enhance governance and policymaking by integrating vast amounts of knowledge and conducting complex analyses. However, the extent and timeline of its impact are contingent upon how effectively governments can incorporate AI into their processes.

Challenges in Governance

  • Governance is characterized by limited information and resources.
  • It involves aggregating various types of information, ethics, democratic norms, history, and resources.
  • The volatile geopolitical environment adds to the complexity.

Potential Contributions of AI

  • Better targeting of welfare programs.
  • Improved monitoring and policy design.
  • Enhanced analysis of scenarios and alternatives.
  • Automated audits and real-time monitoring.
  • Real-time analysis of citizen feedback and grievance redressal.

AI can significantly speed up processes that previously took weeks or months. It can empower lower-level functionaries and enhance the capabilities of higher-level officials by facilitating quicker decision-making.

Decision-Making Process

AI benefits require a change in the traditional decision-making process, emphasizing the need for all decision-makers to be involved. A different approach is necessary to fully leverage AI's capabilities.

India's Unique Opportunity

India's extensive Digital Public Infrastructure (DPI) offers a unique advantage. The DPI provides granular information crucial for AI to function effectively, thus aiding decision-making processes at various government levels.

Challenges with AI

  • Hallucinations: Instances where AI generates fabricated information, especially with limited data.
  • Reasoning Biases: AI models absorb pre-existing biases from the data they are trained on, including gender and religious biases.
  • Ethical and Moral Core: Lack of inherent ethical or moral understanding in AI tools.

While these challenges are universal, guardrails are being developed to mitigate them. AI should assist in decision-making rather than replace human judgment at this stage.

AI in Decision-Making Based on Impact

  • Small Impact Decisions: For tasks like website management, AI can offer quick improvements.
  • Frequent Decisions: AI can play a role in routine tasks like food allocation under Public Distribution System (PDS), with oversight.

Decisions are also evaluated on frequency, costs, and complexity. Understanding these parameters helps determine AI's role and maximize its benefits.

Framework for AI in Governance

By analyzing decision-making based on frequency and potential impact, a framework can be established to enhance decision speed and quality. AI, combined with DPI successes, can provide real-time data to inform policymakers.

If internal processes are adjusted, AI's impact can be significantly amplified, offering substantial benefits to governance and policymaking.

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