Nutanix report finds 83% of public sector organizations already pursuing GenAI, but most face critical readiness gaps
As government bodies globally embrace generative AI (GenAI) to modernize operations, a new study by Nutanix reveals a significant gap between ambition and preparedness. According to its seventh annual Public Sector Enterprise Cloud Index (ECI), 83% of public sector organizations now have a GenAI strategy, with 54% already implementing and 29% preparing for deployment. Yet, the infrastructure, security, and skills to support this transformation are lagging.
While 94% of public sector entities report leveraging GenAI for tasks such as chatbots and content generation, a vast majority (76%) acknowledge that their current IT infrastructure needs moderate to significant upgrades to support modern, cloud-native applications. The result is a surge in urgency for infrastructure modernization, ranked as a top priority by IT leaders.
Security and privacy concerns dominate the conversation. A resounding 92% of public sector decision-makers admit their organizations must do more to secure GenAI applications. Meanwhile, 96% agree that the rise of GenAI has shifted their organizational focus, making data privacy and cybersecurity higher priorities than ever before.
“Generative AI is no longer a future concept, it’s already transforming how we work.”
— Greg O’Connell, VP, Federal Sales, Public Sector at Nutanix
“Public sector organizations expect GenAI to deliver productivity, efficiency, and automation gains—with ROI anticipated within a year,” said Greg O’Connell, VP, Federal Sales, Public Sector at Nutanix. “But realizing these benefits hinges on investments in AI-ready infrastructure and workforce upskilling.”
The survey also showed rapid uptake of Kubernetes and containerization in the public sector, with 96% of respondents actively working to containerize applications. This shift reflects growing recognition of the benefits of cloud-native environments in supporting scalable and resilient GenAI deployments.
Despite challenges, optimism is high. The report underlines that GenAI adoption is accelerating faster in the public sector than expected, driven by the promise of streamlined operations and enhanced citizen services. However, long-term success depends on closing gaps in IT capabilities, ensuring robust data governance, and building a security-first culture.
The findings are based on a global survey conducted by Vanson Bourne in late 2024, covering 1,500 IT and DevOps leaders across multiple geographies and industries.
