PPPs are here to stay and need to thrive in the digital world.
Public-private partnerships (PPPs) are a powerful way to promote the benefits of digital technologies, reduce the digital divide and manage the associated digital risks. Japan’s Society 5.0 initiative, for example, relies on numerous PPPs to create a super-smart society by merging physical and digital spaces. PPPs have also been instrumental in many developing countries, for example in overcoming the reluctance of private companies to invest in rural broadband due to low profitability. Google’s partnership with the Kenyan government on the Loon project is a powerful example of a successful PPP to bring the internet to remote areas. There is also a long list of other areas, such as shared data ecosystems to power solutions in areas such as smart cities, healthcare and transport. In Estonia, for example, the X-Road platform is a secure data exchange layer developed in partnership with the private sector. In cybersecurity, PPPs offer the opportunity to share threat information in real time, enabling both sectors to respond more effectively to cyber threats. CISA in the US, for example, regularly works with the private sector to strengthen national cybersecurity defences, improving the overall resilience of the digital infrastructure.
Making PPPs work in the age of AI
However, as PPPs grow, the following elements will be critical to their effectiveness in the context of digital and AI.1. Ensure a clear, accountable framework:For AI-focused PPPs to be successful, governments need to establish clear legal frameworks that define data protection, ownership and ethical considerations. Given the sensitive nature of AI and data-driven projects, it is essential to create guidelines that protect citizens’ rights while fostering innovation. In Europe, we have GDPR and, more recently, the EU AI Act, which ensures that data is used ethically and securely.2. Favour open data and AI ecosystems:One of the most significant barriers to the successful deployment of AI is access to high-quality data and algorithms. Governments and the private sector should work together to establish these ecosystem elements. 3. Always push for talent and skills development:AI projects require a workforce skilled in data science, machine learning, and related fields. Successful PPPs should invest in training programmes, upskilling, and education initiatives to ensure a steady supply of skilled talent.Agility: AI technologies are evolving rapidly, making it essential for PPPs to remain flexible and adaptable. This means adopting agile project management practices and incorporating mechanisms for regular review and adaptation to keep pace with technological advances.
Save the date for November 21, as we reveal the most digitally ready economies at the global launch of the Network Readiness Index 2024! This year’s report explores the role of public-private partnerships in advancing digital readiness. Register using this form.
Additional Details:
đź—“ Date: Thursday, November 21, 2024 – 14:00 – 17:00 (UK time)
đź“Ť Location: SaĂŻd Business School, University of Oxford or ONLINE
Bughin, Jacques (forthcoming, 2024). Doing versus saying: responsible AI among large firms. AI and Society:1-13.
Ghioni, R., Taddeo, M., & Floridi, L. (2024). Open source intelligence and AI: a systematic review of the GELSI literature. AI & society, 39(4), 1827-1842.
Hammoumi, L., Maanan, M., & Rhinane, H. (2024). Characterizing Smart Cities Based on Artificial Intelligence. Smart Cities, 7(3), 1330-1345.
Nguyen, T., Hallo, L. and Gunawan, I. (2024), “Investigating risk of public–private partnerships (PPPs) for smart transportation infrastructure project development”, Built Environment Project and Asset Management, Vol. 14 No. 1, pp. 74-91
Dr. Jacques Bughin was a director in McKinsey’s Brussels office and supported clients in their Media & Entertainment, Corporate Finance, and Strategy Practices, in addition to co-leading the Digital Economy Initiative. He also acted as director of the McKinsey Global Institute (MGI), the firm’s business and economics research arm. He worked for McKinsey for 28 years. Prior to joining McKinsey, Jacques was a consultant with Arthur Andersen Consulting and received a PhD in economics, operations research, and strategy from Université Catholique de Louvain in Belgium.
Jacques has led numerous research efforts on global economic trends such as globalization, productivity, and inclusive growth, as well as on the impact, opportunities, and challenges of technology including big data, the future of work and skills, and AI. He has authored 50+ articles published in titles including Harvard Business Review, and Sloan Management Review, as well as in academic journals and is quoted regularly in leading international media.