Finland plans AI-driven public sector overhaul by 2031

Finland's public sector is set to transition to an artificial intelligence (AI)-based operating model by 2031, Permanent Secretary at the Ministry of Finance Juha Majanen said on Friday.

According to Majanen, a unified AI platform will be developed for the central government, municipalities and regional healthcare authorities by the end of the next parliamentary term.

In an interview with Helsingin Sanomat, Majanen said the reform is part of a broader effort to improve productivity in Finland's public sector and ensure the long-term financial sustainability of the welfare state.

He acknowledged that the shift will reduce staffing levels, noting that many positions will be phased out over time as employees retire and are not replaced.

"AI will essentially replace humans," he said, referring to the extent of automation expected in routine administrative and service tasks.

Majanen added that while new hiring would be limited in several areas, the transition would also result in job losses among existing public sector workers.

The planned overhaul is part of Finland's wider digitalization strategy, which aims to integrate artificial intelligence into public administration processes across the country.