AI agents are transforming GovTech by automating workflows, streamlining procurement, and enhancing public service delivery. So, what is an AI agent? Here’s a simple explanation.

For GovTech startups, leveraging AI means faster development, reduced operating costs, and improved customer engagement.

Startups that integrate AI agents into their products and services early will gain a competitive edge, offering their governments the efficiency they need to serve their communities.

Startups that use AI agents to support internal functions and teams will win over time. Consider this. During the SaaS/Cloud era, $200K in ARR per full-time employee was best in class. Now, in the era of AI, start-ups are generating better than $1 million in ARR per full-time employee. The efficiency and cash flow advantages of AI-first companies will make it hard for traditional SaaS companies to compete with them over time.