A new Economist Impact report, sponsored by SAS, highlights that AI and digital transformation alone won’t drive government productivity gains. While AI-powered automation can improve efficiency, cybersecurity, and public services, the study underscores that employee engagement, adaptive structures, and cultural readiness are equally important. Based on a survey of 1,550+ public sector employees across 26 countries, the report explores key AI challenges, success stories, and policy recommendations to help governments balance technology and culture for sustainable productivity improvements.