The data economy and Artificial Intelligence as a way to transform the way public policies are designed, making them more efficient
*By Ana Claudia Donner Abreu
We live in an era where data is gold — and knowing how to use it well is what separates efficient decisions from mere guesses. In this context, two elements have been gaining prominence when it comes to transforming public management: the data economy and artificial intelligence (AI). Together, these dimensions are changing the way public policies are designed and implemented.
The idea of a “data economy” goes far beyond simply collecting and storing information. We are talking about a new economic model, where data becomes a resource as valuable as money or labor. And the most interesting thing is that it can be used by several people or institutions at the same time, without losing value — a piece of data does not become exhausted because someone has used it.
This new model is based on technologies such as big data, Artificial Intelligence and business analysis tools (the famous Business Intelligence). This means that both companies and governments gain more agility and intelligence when making decisions. Instead of acting based on guesswork, it is possible to plan based on concrete evidence demonstrated by data.
Artificial intelligence is a driving force behind this transformation. It allows us to analyze a huge amount of data in real time, find patterns that the human eye wouldn’t always see, and even predict future demands. This means governments can act before a problem happens — not just after it happens.
Today, with so many different sources generating information all the time (cell phones, urban sensors, digital platforms, public records), it is easier to customize public policies according to the reality of each place. A neighborhood with a high rate of violence, for example, can receive security reinforcement based on real and updated data. A city with an increase in dengue cases can have targeted combat actions before the outbreak spreads.
Furthermore, when information systems from different areas of government communicate with each other — what we call interoperability — everything flows better. Health connects with social assistance, which connects with education, and so on. This helps not only to avoid waste, but also strengthens public participation and control over decisions. Citizens know what is being done, why, and can demand action based on transparent data.
Another essential point is the automation of processes, especially in sensitive areas such as health, security and urban mobility. Intelligent algorithms can optimize ambulance routes, predict bottlenecks in public transportation and even indicate where there should be more preventive policing. All of this generates a faster, more accurate and more humane public service — because when technology takes care of what is repetitive, there is more time for professionals to take care of what really matters: people.
In fact, what is happening is a change in the way governments think about and implement public policies. Before, it was common to act based on tradition, experience or even intuition. Now, we are moving towards decisions based on concrete evidence, supported by quality data and analyzed with powerful tools such as artificial intelligence.
This new approach has enormous potential to make cities smarter, more efficient and more inclusive. Of course, ethical issues arise involving the availability and use of these new technologies, as well as privacy concerns — after all, personal data is not just numbers, but sensitive information about real lives. But with clear rules, transparency and public participation, it is possible to take advantage of all this potential without giving up responsibility.
The good news is that this revolution has already begun. And cities that know how to use their data well, with people who are prepared to read it, can solve old problems more effectively, and will also tend to be prepared for the challenges of the future. Because in the digital world we live in, governing well also means knowing how to read and interpret the signals that data gives us. And those who learn to listen to these signals transform information into action. And action into real impact on people's lives.
*Ana Claudia Donner Abreu – Researcher at Think Tank. She holds a Bachelor’s and Master’s degree in Administration from the Federal University of Santa Catarina (UFSC).
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
Article originally published on the Connected Smart Cities website: https://portal.connectedsmartcities.com.br/2025/05/26/dados-inteligencia-artificial-e-politicas-publicas-mais-inteligentes-para-as-cidades/
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