Enhancement Suggestion: Latvia should adopt a more focused Artificial Intelligence strategy in its public sector operations.
Latvia is embarking on an ambitious journey to integrate Artificial Intelligence (AI) into its public administration, aiming to streamline services and improve quality. However, a recent situation survey conducted by the State Audit Office reveals a need for a more coherent strategy and coordination in this endeavour.
The survey indicates that 17% of public administration institutions are already utilizing AI solutions, with another 22% planning to do so in the near future. These solutions range from document translation and information retrieval to data analysis and customer service support, including virtual assistants.
The State Audit Office underscores the importance of transparent accounting of investments and results in AI development, as well as clear responsibilities in the coordination of AI implementation. The risk of missing out on AI's potential, as well as non-compliance with safety and ethical issues, increases without a clear strategy and coordination.
To address these challenges, Latvia is aligning its AI strategy closely with broader European Union initiatives. The country is part of the European Commission’s Digital Europe Programme 2025-2027, which includes a €21 million call to fund up to four Generative AI (GenAI) pilot projects in public administration. These projects aim to enhance decision-making, optimize internal processes, improve service accessibility, and simplify bureaucracy by introducing scalable and replicable AI solutions.
Moreover, efforts are underway to establish an AI competence and services center at Riga Technical University (RTU), aimed at strengthening AI expertise in Latvia. This initiative supports AI development in public administration by cultivating local expertise and resources.
Governance and ethical considerations are also being addressed through stakeholder engagement. Emerging governance approaches emphasize the integration of meaningful stakeholder engagement at all stages of AI procurement and deployment in public administration. This includes framing AI systems as digital public infrastructure, adopting lifecycle-based governance models, and embedding public values like transparency, inclusion, and accountability.
Latvia is also expected to have a national AI strategy by spring 2025, in line with the EU AI Act, which requires member states to designate competent authorities to oversee AI regulation and compliance. This process will provide the legal and institutional framework to enforce ethical standards and manage risks linked to AI implementation in the public sector.
To promote innovative solutions, quality data access, data re-use, inter-institutional data sharing, and secure and reliable data handling infrastructure need to be developed. The State Audit Office also emphasizes the importance of maintaining communication between institutions to share experiences - the good and the not-so-good.
However, a lack of a common understanding of terminology in the context of AI in public administrations is another challenge that needs to be addressed. The State Audit Office suggests developing a common approach to the risk management and safe use of AI.
Despite a shortage of highly qualified AI specialists in Latvia, the case study is expected to help the future development of AI, particularly for the Ministry of Smart Administration and Regional Development and the Artificial Intelligence Centre Foundation. The analysis of sectors shows that only a few have an outline for developing AI.
In summary, Latvia’s current strategy involves leveraging EU funding for innovative AI pilots in public administration, strengthening national AI competence through academic and service centers, adopting inclusive and mission-oriented governance models to address ethical challenges, and preparing national regulatory frameworks aligned with the EU AI Act to ensure accountable and ethical AI deployment. These steps collectively aim to foster trustworthy, efficient, and socially beneficial AI integration in Latvian public administration.
The State Audit Office encourages the establishment of a transparent accounting system for AI investments and results, as well as clear responsibilities in AI implementation, in order to mitigate the risk of missed opportunities and potential non-compliance with safety and ethical issues.
The State Audit Office also recognizes the need for a common approach to AI risk management and safe use, particularly in addressing the current lack of a common understanding of terminology in the context of AI in public administration.
