How Microsoft – and AI – Make Government Services Better - Proffe Invest

How Microsoft – and AI – Make Government Services Better

By: August 7, 2025

How can Artificial Intelligence improve government services? There are many different ways, but here are my top 3:

First, AI can help make governments themselves better.

Governments, whether on a national level or on a local level, have to make decisions. In many cases, not all necessary information is available, which is why governments have to make decisions with some uncertainty, which also is true for companies’ leadership teams.

AI can help aggregate all the data that is available and use it to draw the best conclusions, model different scenarios and their outcomes, and so on. This should allow governments that deploy AI to make better decisions, which would be beneficial for everyone.

Second, Artificial Intelligence can make processes faster and easier.

Chatbots can be used to communicate with citizens to evaluate their needs in order to delegate them to the human that’s most capable to deal with the citizen’s problems. For example, AI can also handle many bureaucratic tasks, e.g. by filling out forms automatically with the data that’s available, automatically adding data points to databases, and so on.

Third, AI can be used to “strengthen” government services.

This includes fraud prevention, since AI algorithms can help find tax returns, benefit claims, and so on with a high likelihood of fraud or false information. AI can also help predict potential problems, times with above-average demand for government services, and so on, which allows these government services to allocate resources effectively. If AI algorithms predict that many people will go to the DMV ahead of the summer driving season, for example, more people can be scheduled to work during that time.

 Cashing in on AI Government Services

We can’t invest in governments or government services directly, but we can invest in companies that supply the data, the algorithms, the computing power to make Artificial Intelligence usage in governments and government services possible.

It is not surprising that many of the big tech companies belong to that group. Microsoft (NASDAQ: MSFT), with its Azure cloud computing service and its Copilot AI tools, should benefit from increased AI usage across governments and their agencies, and the same can be said about Amazon (NASDAQ: AMZN) and its massive AWS cloud computing business that provides computing power, data handling, and so on for its customers — including government agencies.

Of course, NVIDIA (NASDAQ: NVDA) is among the beneficiaries as well — its chips are needed to train and run the advanced algorithms that help with modeling scenarios for better decision-making, fraud detection, and so on.

Investors can choose among our top Artificial Intelligence picks to benefit from increased Artificial Intelligence usage in government services and in many other areas.


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