## Notes from 21 May 2025 [[2025-05-20|← Previous note]] ┃ [[2025-05-22|Next note →]] ### Notes on "the agentic state" and its meaning for people management This white paper, "[The Agentic State: How Agentic AI Will Revamp 10 Functional Layers of Government and Public Administration](https://media.licdn.com/dms/document/media/v2/D4D1FAQG_6W3L6DTDxg/feedshare-document-pdf-analyzed/B4DZcQZbgiIEAc-/0/1748326801617?e=1750291200&v=beta&t=sL6W7yZ5dcpgNrZpnNj7wRRy0Rz87ImRMSP-CCFrBmA#page=26.08)" was published in May 2025 by the Berlin Global Government Technology Centre, an initiative of [[GovTech Campus Deutschland]] and the [[World Economic Forum]]. The lead author is [[Luukas Ilves]], with contributions from Manuel Kilian, [[Tiago C. Peixoto]], and Ott Velsberg. This report offers a compelling, albeit challenging, vision for the future of government. Although it is not strictly a document about human resources, talent or the civil service management, its arguments about the workforce and leadership are central to its thesis. The key message is that technological transformation involving AI is impossible without fundamental reform of the way the public sector hires, develops and leads its workforce. **1. On talent acquisition and hiring** The current model is fundamentally broken in the digital age. - The **government's HR systems are outdated** because they are **built around lifetime careers and rigid, credential-based job classifications** instead of agile skills. This makes it difficult to attract or retain people with expertise in cutting-edge digital, data, and AI fields - There's a dual challenge: While some tech skills will be democratized by AI, there will be an even greater need for "hyper-productive" elite talent to design and govern core AI systems. This talent is scarce and expensive - The report raises the critical question of how to attract top AI engineers and suggests that a sense of purpose, workplace flexibility, and direct influence may need to compensate for the public sector's limitations regarding pay and perks **2. On career models and culture** The internal structures and culture are seen as major roadblocks. - A specific and critical flaw is the limited career progression for technical specialists outside traditional management tracks. This actively discourages top technical talent from pursuing long-term careers in government - The report also points to a risk-averse, process-driven culture that stifles the experimentation and iteration essential for AI development. Existing political and bureaucratic incentives rarely reward long-term technological transformation - This [[Institutional Paralysis|structural inertia]] allows outdated systems and institutional legacies to persist, even when they hinder progress. **3. On workforce development and new competencies** The focus shifts from performing tasks to collaborating with systems. - A key vision is the "democratization of tech skills," in which generative AI dramatically lowers the barrier for public servants working with data and automating tasks using natural language - This necessitates universal upskilling. The report argues that all public servants will need to develop skills in "working with AI." This does not involve coding but rather critically evaluating AI outputs, providing effective feedback to systems, and collaborating seamlessly with "_AI teammates_". - This transition presents a massive challenge for retraining and reorganization, as many roles will transform into human-AI hybrids. **4. On leadership** The role of a leader must evolve from managing delivery to designing systems and intent. - A "governance gap" persists, with many government leaders still a "generation behind" in their practices. These leaders treat technology as a siloed support function rather than a core strategic asset - Effective leadership requires blending technological fluency with a deep understanding of public purpose, systems thinking, and ethical reasoning. Leaders must be able to define strategic intent in a "machine-readable" way that can effectively guide AI agents - The report proposes a new leadership archetype for the AI era and questions the role of the government CIO, suggesting the need for **Chief AI Officers** with broad authority to integrate AI across all government functions In essence, the report argues that building the "_Agentic State_" is not only a technological problem but very much a human capital one. Without addressing these deep-seated issues in public sector people management, any attempt to leverage agentic AI will be superficial at best.