The Finnish government plans to transform the country’s entire public sector into an artificial intelligence-based system by 2031, a reform expected to reshape public services and reduce the need for thousands of public sector workers.
The proposal was outlined by Juha Majanen, permanent secretary at Finland’s Ministry of Finance, in an interview with Helsingin Sanomat, which first reported the government’s long-term plans.
According to Majanen, the state, municipalities and wellbeing services counties will gradually adopt a shared AI platform that uses the strongest available AI models on the market. The platform is intended to support a wide range of public administration tasks and increase productivity across government services.
Majanen told Helsingin Sanomat that AI would become the foundation of public administration by the end of the next parliamentary term in 2031.
The transition is also expected to reduce staffing levels across the public sector.
Majanen said many of the reductions would come through natural attrition, with retiring employees not being replaced. He also acknowledged that some public sector workers would lose their jobs as AI takes over tasks previously handled by people.
The Ministry of Finance estimates the reforms will increase productivity in the public sector by at least 20%. According to Majanen, the objective is to secure long-term funding for Finland’s welfare state as demographic pressures and public finances continue to challenge government spending.
Political parties have increasingly pointed to AI as a source of future savings.
Former prime minister Juha Sipilä has previously estimated that artificial intelligence could generate savings of up to €8 billion, according to Ilta-Sanomat. The Centre Party has projected productivity gains worth €1.5 billion during the next parliamentary term, while the Social Democratic Party has also included AI-driven efficiency measures in its fiscal plans.
The announcement drew an immediate response from the Union Pro, which represents many public sector professionals.
The union warned that the government’s emphasis on savings risks weakening public services and placing excessive pressure on employees.
“The use of artificial intelligence is sensible in itself, but it is now being advanced primarily through savings,” Union Pro president Niko Simola said in a statement.
“At the same time, the impact on employees and public services is being overlooked.”
The union argued that AI should be introduced to improve productivity and service quality rather than serve as a justification for workforce reductions.
It also warned that public administration requires particularly careful use of AI because decisions often involve citizens’ legal rights, equal access to services and the handling of sensitive personal information.
The Left Alliance also urged policymakers to prepare for wider changes in the labour market.
Member of Parliament Jessi Jokelainen said Majanen’s assessment reflected a realistic picture of the impact AI will have on employment, even if many people find it alarming.
She argued that Finland has not developed sufficient policies to prepare for large-scale changes in the labour market and called for broader political discussion on how AI-generated economic value should be taxed.
Jokelainen said the country’s tax system still relies heavily on labour even as technology and data play a growing role in creating wealth.
She also proposed examining ways to tax AI-generated work and repeated her call for stronger income security, including a basic income, alongside expanded lifelong learning opportunities to help workers adapt to technological change.
HT