Countries that quickly implement AI will win economically — George Osborne

Many governments around the world speak of ambitious plans to integrate AI into government structures, but in practice, very few countries have actually implemented these technologies. According to George Osborne, head of OpenAI's department for government relations, those states that begin to do this faster than their competitors will gain a tremendous advantage in economic development, in the quality of services provided to citizens, and in the efficiency of all government structures.

Who implements AI first will win in global competition

George Osborne, former Chancellor of the Exchequer of the United Kingdom and an experienced politician with extensive experience in economic policy, now leads OpenAI's direction for interaction with national governments worldwide. He is deeply convinced that implementing AI in the public sector is not simply another digital transformation, but a genuine competitive struggle between countries that will determine the world order and economic dominance in the coming decades. Those states that move faster than others in this process will gain advantages both in the economy and in substantial improvements in the quality of government services and in raising the standard of living of citizens.

Osborne repeatedly emphasizes that many states have already fully understood the critical necessity of implementing AI and actively discuss it at the highest political levels and in parliaments. However, in practice, the implementation process itself has been significantly delayed and has encountered numerous serious obstacles and bureaucratic barriers. Some countries are only developing long-term plans, others are already in the process of pilot implementation in individual departments, but tangible and visible results are still lacking. It is precisely the difference in the speed of realization of these plans that will become the decisive factor for the economic and political future of the world.

Economic potential and social benefits

Countries that implement AI in the public sector faster than others will be able to obtain a whole spectrum of economic and social advantages:

• Significant acceleration of economic growth through increased labor productivity in all public institutions and government bodies
• Qualitative improvement of government services and radical reduction of bureaucratic delays for citizens and small businesses
• Attraction of large foreign investments in the national technology sector and in innovative startups
• Creation of tens of thousands of new high-paying jobs in IT and in related high-tech sectors of the economy
• Increased competitiveness in the global market and strengthening of influence and positions on the global political and economic arena

This is particularly important in the context of intensifying global economic competition between major powers and regional leaders. It is precisely the pace of implementation of new innovations and integration of AI in the public sector that determines which countries will be at the forefront in the next decade. Therefore, for every state, this is not simply a routine technological task, but a critical question of national security and long-term economic sovereignty.

Real obstacles to implementation

However, the real situation turns out to be much more complex and intricate than it might seem at first glance when reviewing ambitious plans. Bureaucratic processes in government structures are historically extremely conservative, budgets for new technologies are significantly limited, and existing legislation consistently lags behind technological capabilities. Cultural inertia of government structures and the deep habit of people to old proven methods of work are the main obstacles to active implementation of AI in the civil service.

For successful AI integration, states need not only substantial capital investments in equipment procurement and specialized software development, but also comprehensive retraining of government personnel, complete reworking of existing business processes, and above all—fundamental changes in corporate culture across all government institutions. Such large-scale transformation requires political will at the highest level of the state and long-term strategic planning.

What does this mean

Osborne is essentially talking about a race between countries: whoever can integrate AI into the system of public administration faster and more effectively will win in the economic and political competition of the coming decades. For Russia, the USA, China, Europe and other global leaders—all without exception need not only to accelerate, but to shift into maximum sprint mode. Standing still in our time means inevitable economic and political lag behind more dynamic competitors.