Technology & AI solutions
The new government tangibly views technology and AI as key to achieving its goals. Improving productivity while maintaining service delivery standards requires navigating complex transformations, adopting innovative technologies, and refining operational processes. This will include process automation, AI assessment of spending and outcomes and, potentially, a single access point for all government programs.
With a focus on rapid digital transformation, cybersecurity will also be paramount. Implementing robust cybersecurity measures will be essential to protect national interests, maintain public trust, and ensure the smooth functioning of governmental operations.
Strategic outsourcing for speed and efficiency
Although the government has committed to reducing its dependence on external consultants and enhancing internal expertise, current limitations in institutional capacity and knowledge transfer frameworks present ongoing challenges. To address these limitations and keep the focus on rapid progress, governments will need to reengineer their approach to outsourcing in the short term. Project teams with targeted expertise and agreed outcomes achieved in a specific period will be required if they are to deliver on election promises with speed and efficiency.
Improved responsiveness and agility
The Liberal approach to supporting those impacted by tariffs while boosting and strengthening the economy is a complex set of funds, loans, and incentives aimed at businesses and individuals throughout Canada. A technology-based approach is a given but ensuring service experience and guaranteeing desired outcomes with real-time dashboards and oversight will be a heavy lift for already overloaded teams.
Simplified procurement processes
Supported by technology, agencies and departments—ranging from defence to the newly created Build Canada Homes (BCH)— will be expected to streamline and speed up procurement processes. It is essential that guidelines, outcomes based KPIs, and internal controls are sufficiently robust to ensure compliance and ethics during what is expected to be a significant increase in volume.
Compliance and regulation
Compliance and adherence to regulations are among the first things to be tested in a rapidly changing environment. Here, again, the government must lean on advanced technologies to provide solutions including data analytics and artificial intelligence to monitor activities in real-time, detecting anomalies and potential violations. Strategic risk management strategies and choices are key to navigating regulatory compliance at pace.
Oversight and controls
One of the hard-earned lessons from the rapid deployment of government funds during the COVID-19 pandemic is that speed cannot come at the cost of oversight and control. In December 2024, a report from Auditor General Karen Hogan noted that while the Canada Emergency Business Account (CEBA) program successfully delivered rapid financial support to Canadian small businesses during the pandemic, there were opportunities to improve how value for money was managed throughout the program. Advanced planning, well defined criteria, and technology enabled tracking and reporting will be key to reducing the risk of limited oversight.
Operational excellence
Operational excellence will be a key priority for the new Prime Minister, as justifying the cost and efficiency of existing operations is one of the first major challenges for any incoming leader. While past governments have conducted spending, program, and operational reviews, the current administration must do so under heightened pressure. Departments will need to quickly identify and classify programs and assets as ‘capital’ to demonstrate ROI or productivity gains—critical steps to avoid being categorized as purely operational, which may carry a greater risk of budget reductions. At the same time, government must re-prioritize critical areas such as defense and health, while safeguarding Canadian sovereignty. This complex task will likely require external expertise to support the identification of capital assets and the use of technology to strategically reposition ahead of upcoming reviews.
How BDO can help
With a focus on government spending and improving overall efficiency on the horizon, departments and agencies potentially face strained resources, elevated expectations, and global pressures in the short to medium term. Public sector leaders and government decision makers will be faced with the tasks of decreasing expenses, increasing productivity, and promoting modernization. In addition, federal and provincial department heads, policy advisors, and civil servants directly affected by or involved in implementing government transformation efforts—particularly in areas like digital transformation, procurement, compliance, and public service delivery—will need to strategize and deliver. And to deliver, they must not only stay informed of rapid application solutions and potential strategies, but work with experienced advisors who understand technology, transformation, establishing incentives, and the unique needs of the public sector.
If you would like to discuss how this might impact your organization, reach out to one of our public sector or technology advisors.