IDC: Agentic AI is Necessary for Public Sector Modernisation

Agentic AI could become the main driver for digital transformation across government organisations.

A global study by IDC, commissioned by Dell Technologies and NVIDIA, reveals that 71% of government executives believe agentic systems could accelerate AI adoption.

The report, titled Building a Sovereign AI Foundation for Government, was a result of surveying more than 250 senior decision-makers across North America, EMEA, APJ and LATAM.

According to the study, 51% of leaders plan to invest in agentic AI within the next 12 to 18 months.

Public sectors face workforce constraints alongside widening skills gaps, has pushed leaders towards autonomous agents as a potential solution, as pressure mounts to modernise. 

Nicole Jefferson, Vice President of Global Government Affairs at Dell, says governments are changing their approach. "Governments worldwide are no longer asking whether to adopt AI – they're asking how to do it at scale, securely and on their own terms," she says.

How security concerns are shaping AI adoption

The study shows ambition exists but conditions apply.

According to IDC, 44% of leaders stated they would only accelerate adoption if robust safeguards are in place. These safeguards include data security, privacy and sovereignty protections.

Decision-makers are evaluating technology investments based on specific criteria.

The study identified three main priorities:

• Security capabilities (28%)
• National security and sovereign priorities (21%)
• Compliance with international and local regulations (17%)

Sovereign AI would allow governments to maintain control over their data and infrastructure, as autonomous systems depending on them provide efficiency gains while preserving oversight.

Alan Webber, Program Vice President of National Security, Defence and Intelligence at IDC, notes that infrastructure foundations matter.

"Governments will only move at scale if they have confidence in the security and infrastructure foundations underpinning these systems," he says.

Workforce challenges drive investment

But technology is evolving faster than public sector workforces can adapt. According to the study, 66% of public sector organisations feel this gap widening.

The expertise deficit has created urgency around AI integration and agentic AI is hence viewed as a necessary workforce multiplier rather than an optional tool.

The skills gap has shaped how governments approach implementation, with leaders seeking external support to navigate deployment complexities.

This is where public-private collaboration can prove essential for successful implementation. According to the study, 80% of respondents agree that these partnerships are simply necessary.

Government agencies are partnering with industry leaders like Dell and NVIDIA to deploy scalable AI infrastructure that transforms operational pressure into progress.