Artificial intelligence in state administration must be developed more purposefully

08.05.2025.

Similar to other parts of the world, Latvia faces many challenges for artificial intelligence (AI) to become a technology that helps to make state administration work more effective on a daily basis. Therefore, laying a solid foundation for the targeted, unified, coordinated, safe and public interest-compliant use of AI in precisely those areas where it can make the greatest contribution is important. To gain a clearer picture, identify opportunities and shed light on challenges, the State Audit Office of Latvia has conducted a review on the implementation and use of AI in state administration.

IN BRIEF

  • 17% of state institutions are already using AI solutions, 22% are planning to implement them, while 55% of institutions do not have a clear plan for using AI.
  • Several problems have been highlighted, including: 1) Latvia lacks a single strategy for the development and safe use of AI in state administration, 2) we receive lower rankings in international assessments measuring AI development than Lithuania and Estonia, 3) there is no mechanism in place for accounting and monitoring the costs and results of AI solutions.
  • It is positive that digital services and open data are already available in state administration that is an essential prerequisite for implementing AI solutions.

“In the opinion of the State Audit Office of Latvia, it is essential to develop a single AI development strategy in state administration, to determine clear responsibility for the coordination of AI implementation, to establish a common approach to AI risk management and safe use, as well as to ensure transparent accounting of investments and results. However, each state institution that can use AI technologies in daily work and in the provision of services plays an equally important role in the implementation and development of AI in state administration,” explained Ms Ilze Bādere, Council Member of the State Audit Office of Latvia.

The review conducted by the State Audit Office shows that AI solutions are already entering the work of state administration. In a survey in which 83 state institutions participated, 17% of institutions indicated that they used AI solutions actively, while another 22% planned to implement them in the near future. The solutions used include document translation, information search, data analysis and customer service support, including virtual assistants.

State institutions expect AI to help reduce service delivery time and improve quality. 41% of institutions that are already using AI solutions have noted an increase in productivity. Although the relevance of AI increased significantly at the end of 2022, only 18% of state institutions have assessed the possibilities of using AI and 28% plan to include AI goals and priorities in their strategic documents.

The results of the review show that state administration lacks a single AI development strategy and a common understanding of terminology. When analysing public policy areas, it was concluded that only a few outlined the development of AI. However, without a clear strategy and coordination, the risk increases both of not using the potential of technology and of ignoring security and ethical issues.

Data availability and quality are essential prerequisites for the development of AI. In Latvia, the legal framework sets out general principles and regulations for data dissemination and exchange, but there is no specific national data strategy, which is currently being developed by the Ministry of Smart Administration and Regional Development. To promote the implementation of innovative solutions, the state must ensure access to high-quality data, facilitate data reuse and inter-agency data exchange, as well as develop an environment and infrastructure that would allow processing large amounts of data in a safe and reliable manner.

Latvia lacks highly qualified AI specialists. Therefore, to safeguard the implementation of technologies in state administration, digital skills must be purposefully developed, cooperation with universities and research institutions must be established, and training programs in the public sector must be strengthened.

Although one expects that significant investments will be made in the development of AI in the public sector in the coming years, there is no clear mechanism in place currently that would allow tracking investments and their results specifically in the field of AI solutions. Accounting for investments would allow both to assess the return on investment and whether the effectiveness and efficiency of state institutions have actually increased after the implementation of AI solutions.

“We hope very much that this review will help the further development of AI, including the responsible institutions that must plan and decide on improvements such as the Ministry of Smart Administration and Regional Development and the Foundation “Centre for Artificial Intelligence”. It is equally important to maintain lively communication among state institutions, where experience can be shared either good or not so good experience. With this in mind, today, on 8 May 2025, we are also hosting an inspirational event on AI solutions in state administration,” stated Ms Ilze Bādere, Council Member of the State Audit Office of Latvia.

Ref: review

A review is a short-term collection of facts on current issues, without drawing conclusions or making recommendations. The purpose of this review was to collect information on the current use of AI solutions in state administration. In its turn, one plans to publish a comparative research material on the development of AI in state administration of Israel, Estonia, France, Italy, Lithuania, North Macedonia, Poland, Romania, Slovakia and Switzerland at the end of 2025.

In 2024, the first legal regulation in the field of AI was adopted in the European Union, that is, the European Union AI Act. In its turn, the Law on the Centre for Artificial Intelligence was recently adopted in Latvia and the government reviewed an informative report on the implementation of the requirements of the EU AI Act. In this context, the review by the State Audit Office of Latvia provides a current insight into the readiness and progress of state administration in the field of AI by identifying both achievements, shortcomings and risks to increase targeted action in AI policymaking.

About the State Audit Office of Latvia

The State Audit Office of the Republic of Latvia is an independent, collegial supreme audit institution. The purpose of its activity is to find out whether the actions with the financial means and property of a public entity are legal, correct, useful and in line with public interests, as well as to provide recommendations for the elimination of discovered irregularities. The State Audit Office conducts audits in accordance with International Standards of Supreme Audit Institutions of the International Organization of Supreme Audit Institutions INTOSAI (ISSAI), whose recognition in Latvia is determined by the Auditor General. Upon discovering deficiencies, the State Audit Office of Latvia provides recommendations for their elimination, but it informs law enforcement authorities about potential infringements of the law.

 

Information drafted by

Mr Aivis Majors

PR Specialist in Digital Content Development

 

Additional information

Ms Gunta Krevica

Head of PR and Internal Communication Division

Ph. 23282332 | E-mail: Gunta.Krevica@lrvk.gov.lv