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AI in government: what applies to the public sector?

Adopted 2026-06-20 ยท ≈ 1 min read ยท Dirk Baaijen

AI that determines access to public services or benefits, or is used in law enforcement, migration or justice, is high-risk under the AI Act. As deployers, public bodies must often carry out a fundamental rights assessment (FRIA) and be transparent to citizens.

Short answer: For government, AI is regulated more strictly. AI that determines who gets access to essential public services or benefits, or that is used in law enforcement, migration/asylum/border control or justice, falls under Annex III and is high-risk. As deployers, public authorities must also carry out a fundamental rights assessment (FRIA, Art. 27) before use, and be transparent to citizens.

Why government is a special case

Government exercises authority over citizens, who often cannot "walk away" to another provider. That is why Annex III designates public uses as high-risk:

  • AI that assesses access to essential public services and benefits (such as eligibility for a benefit or allowance);
  • AI in law enforcement (risk assessment, evidence evaluation);
  • AI in migration, asylum and border control;
  • AI supporting the administration of justice.

The fundamental rights assessment is mandatory here

Unlike for many private parties, the FRIA (fundamental rights impact assessment, Art. 27) is an obligation, not an option, for public authorities deploying high-risk AI. Before use you map the impact on fundamental rights and the measures you take.

The lesson of SyRI

The Netherlands has the cautionary example: the SyRI welfare-fraud risk system was struck down by a court in 2020 as breaching Article 8 ECHR for lack of transparency and proportionality (see the enforcement tracker). The childcare-benefits scandal earned the tax authority a GDPR fine. Government AI rarely fails on the technology and often on transparency, proportionality and non-discrimination.

What to do

  • Inventory and classify your AI uses against Annex III.
  • Do the FRIA before deploying high-risk systems.
  • Ensure human oversight, transparency and explainability towards citizens.
  • Test for non-discrimination and proportionality โ€” the most common pitfalls.
  • Arrange AI literacy for civil servants.

In government, trust counts double: AI that affects citizens falls under the heaviest regime, with a mandatory fundamental rights assessment. Start there, not with the technology.

Sources

  1. https://eur-lex.europa.eu/eli/reg/2024/1689/oj
    Regulation (EU) 2024/1689 (AI Act): Annex III (public services, law enforcement, migration, justice) high-risk; Art. 27 (FRIA for public authorities).

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About this knowledge base

Compiled and maintained by YRproject โ€” programme and project direction at the intersection of digital transformation, AI and regulation. Every factual claim is traceable to its primary source. YRproject is led by Dirk Baaijen About & method โ†’

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