By Alice Luz
The global market for technologies geared towards the public sector is at a decisive moment. According to a recent report from the World Economic Forum, it is estimated that digital solutions for governments could generate up to US$9.8 trillion in global public value by 2034. Furthermore, according to a study by DataHorizzon Research, the govtech segment is expected to grow by 12.5 trillion annually between 2025 and 2033, jumping from US$15.4 billion to US$49.3 billion. These impressive figures represent a structural shift in how states organize themselves, provide services, and connect with their citizens.
In Brazil, the smart cities agenda gained new momentum with the publication of Ordinance MCid No. 1,012/2025, which establishes guidelines for each municipality to develop its own urban digital transformation strategy. The regulation mandates that these initiatives align with existing national frameworks, such as the Brazilian Strategy for Digital Transformation and the Brazilian Charter for Smart Cities, and encompass principles such as data protection, risk assessment, social inclusion, and sustainability. Among the recommendations are the encouragement of interoperability between platforms and, for more vulnerable municipalities, the adoption of climate monitoring solutions.
Furthermore, technological transformation in the Brazilian public sector is already a well-established benchmark. We were recognized by the World Bank as the second country in the world in digital government maturity, according to the GovTech Maturity Index 2022. By achieving leadership in the West, we position ourselves as a reference in the use of technologies to promote administrative efficiency, increase transparency, and strengthen citizen participation, reinforcing the role of digital transformation as a driver of democratic and economic development.
In this context, the digitalization of public services is not a luxury, but an essential tool for reducing administrative costs, strengthening transparency, and creating new forms of popular participation, such as digital consultations and citizen monitoring of service quality. This vision had already been shared in the World Bank report "GovTech: Putting People First," from 2021, which pointed out that these initiatives contribute to more efficient governments, increase institutional accountability, and promote greater public engagement.
The recent report "Governing with Artificial Intelligence," prepared by the Organisation for Economic Co-operation and Development (OECD), highlights the transformative potential of this technology for governments, demonstrating gains in productivity, service personalization, institutional integrity, and responsiveness. Based on 200 real-world cases across 11 core public sector functions, the study indicates that AI can automate up to 84% of government actions, significantly reducing costs and fraud, while also posing challenges such as talent shortages and ethical risks.
In the Brazilian context, the study already recognizes concrete advances in several institutions, including Aneel, ANTT, CGU, TCU, and the Judiciary, in addition to strategic initiatives such as the National Data Infrastructure led by MGI. A prime example is the use of AI by the National Treasury for expense classification, reducing the categorization work from 1,000 to just 8 hours, with an accuracy of 97%, demonstrating simultaneous gains in efficiency and transparency. These cases highlight Brazil's commitment to the digitalization and innovation of the public sector, showing that emerging economies can combine technology and governance to overcome structural limitations and strengthen public management.
Market studies and statistical data prove that the future of public governance will not be decided solely in offices, but will be shaped in data clouds, service automation, and platforms that connect citizens to institutions in real time. A more agile, transparent, and inclusive state is possible, and the time to invest in this shift is now. If the Brazilian market... software If the govtech market knows how to leverage the convergence between regulation, technology, and social demand, it will cease to be a promise and become the backbone of a digital, resilient, and, above all, people-centered country.
*Alice Luz is the CEO of 1Doc, a company specializing in digital processes for public administration. – Email: 1doc@nbpress.com.br.
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
