Unlocking the power of data in the public sector

Public sector organisations have long faced the same dilemma: how to deliver better services with fewer resources. As the volume of data generated grows at a huge rate, digital leaders are challenged to create solutions that unlock new insights and ways to create better experiences for users.

To explore those issues, Malte Dieckelmann, Senior Vice President Sales EMEA & APAC, Hyland, spoke to Government Transformation Magazine about how smarter data use and AI can transform public services.

For Dieckelmann, the answer lies in rethinking how governments use the data they already have. “Many institutions are struggling with the sheer volume of information they hold,” he says. “Everywhere, content is growing, and that makes it harder to navigate different sources and make intelligent decisions that serve citizens effectively.”

Data optimisation: the foundation for doing more with less

Data optimisation, he argues, is the crucial starting point. “It’s about how institutions can leverage access to their content and introduce more automation into their workflows,” Dieckelmann explains. “The goal is to use information intelligently – not just to store it.”

Much of the challenge lies in unstructured data: the emails, forms, documents, and media files that accumulate across departments and systems. “Public institutions often have content scattered across file shares, SharePoint, and various backend systems,” he says. “We can’t expect them to rebuild everything from scratch, so the first step is connecting what already exists. Once you can access and understand that data, you can start enriching it with context and making it usable for AI and automation.”

The next stage is applying AI and automation to remove repetitive tasks and free staff for higher-value work. “Public institutions are under constant pressure to deliver more with less, so the question becomes: what can we automate responsibly?” Dieckelmann asks. “Processes like verifying details, routing cases, or checking for completeness don’t always require human involvement. People should focus on managing exceptions and decisions that need judgement.”

In practice, this could mean using intelligent agents within workflows to process claims, validate documents, or flag anomalies. “It’s about reducing or even eliminating manual steps,” he says. “If 80 or 90 percent of a standardised process can be automated, that’s a huge efficiency gain. And it also creates more satisfying work for employees, because they can focus on activities that have real impact.”

Tackling the unstructured data challenge

Unstructured data remains one of the biggest barriers to transformation. “The challenge is massive,” says Dieckelmann. “In any large organisation – and especially in government – so much content sits in silos that it’s almost impossible to bring together. Yet that’s exactly what’s needed to make data work for you.”

He points to Hyland’s recent development “agent meshes” – systems of connected AI agents that can process routine claims such as unemployment benefits. “The idea is to determine the validity of a claim, pull key information, flag potential fraud, or execute the claim automatically,” he explains. “But when multiple processes and agents start interacting, you need governance – to keep the logic clear and the system accountable.”

That emphasis on governance extends to data protection and compliance. “Public institutions must be able to bring data together securely and in line with GDPR and regional regulations,” he says. “It’s not just about technology – it’s about trust. Citizens need to know their information is being handled responsibly.”

Cloud and compliance: building trust in transformation

For many government organisations, concerns about security have slowed the move to cloud-based systems. Dieckelmann believes that barrier is finally lifting. “A lot of the historical resistance around cloud has been overcome,” he says. “The technology and compliance frameworks have matured. The real challenge now is helping institutions understand that transformation can be both secure and efficient.”

He stresses that governments don’t need to do it all themselves. “Keeping pace with security investment is difficult for individual agencies,” he notes. “Working with trusted partners and using proven frameworks for governance can make transformation faster and safer.”

Data silos remain one of the most persistent obstacles to public sector efficiency. “Documents, emails, images, videos – these represent around 80 percent of organisational content, but they’re fragmented across different systems,” Dieckelmann says. “The key is to make them accessible without necessarily moving them all into one place.”

Federating data – linking systems through metadata and common structures – allows organisations to use their information more effectively. “Once you can connect and search across systems, you reduce duplication, improve accuracy, and make it possible to automate workflows end to end,” he explains. “Right now, a lot of public sector employees spend huge amounts of time simply searching for information. Multiply that across a large institution, and you see the scale of inefficiency. Integration is what changes that.”

Improving outcomes for employees and citizens

For Dieckelmann, the ultimate measure of transformation is its human impact. “It’s about improving job satisfaction and freeing up time for higher-value work,” he says. “Automation should make people’s roles more interesting, not replace them.”

He cites examples of public bodies that have simplified their operations by consolidating legacy systems and introducing smarter workflows. “When you harmonise systems and reduce manual tasks, you not only gain efficiency – you also improve service quality,” he explains. “It’s hard for any government to simply hire more people to meet rising demand, so the only sustainable path is to use technology to serve citizens better.”

This, he adds, is about restoring trust as much as productivity. “When data is accessible and processes are consistent, decisions are more transparent and errors are reduced. That strengthens confidence in public services.”

With the volume of enterprise data doubling every two years, Dieckelmann argues that governments need to act quickly to stay ahead. “Public institutions can’t double the number of people managing data,” he says. “They need to take smarter advantage of automation and AI. The creativity in how these technologies can be applied is almost unlimited.”

He believes the public sector stands at a pivotal moment. “In earlier technology waves – the internet, then cloud computing – adoption took years. This time, the pace has to be faster,” he says. “AI is not only analysing data but generating new content, so the challenge and opportunity are both growing.”

For governments, this could be a chance to leap ahead rather than catch up. “AI will allow many institutions to leapfrog stages of digital maturity, just as mobile networks helped countries without landline infrastructure connect their citizens,” Dieckelmann argues. “Even those that struggled to benefit fully from earlier technology shifts can now move faster and serve better.

The message is clear: waiting is not an option. “This is a fantastic moment in time to change the picture and change the game,” says Dieckelmann. “By using data intelligently and adopting automation responsibly, governments can deliver better services with fewer resources – and do so in a way that earns the trust of the people they serve.”