By 2031, the Finnish government plans to transform the entire state public sector into an artificial intelligence (AI) system; this reform could reshape public services and cut the number of public sector employees by thousands. This intention was outlined by Juha Majanen, Permanent Secretary of Finland's Ministry of Finance, in an interview with the newspaper Helsingin Sanomat, which was first to report on the government's long-term plans. He said that state, municipal and welfare services will gradually move onto a shared AI platform using the most powerful AI models available on the market. This platform is intended to support a wide range of public administration tasks and boost productivity across all government agencies. Majanen told Helsingin Sanomat that artificial intelligence will become the foundation of public administration by the end of the next parliamentary term in 2031.
Staff cuts
This transition is expected to reduce staff numbers across the public sector. Majanen explained that much of the reduction will happen through natural staff turnover, without replacing employees who retire. He acknowledged that some public sector employees will lose their jobs as AI "takes over" tasks previously performed by people.
The Ministry of Finance estimates that the reforms will raise public sector productivity by at least 20%. According to Juha Majanen, the goal is to secure long-term funding for Finland's welfare system at a time when demographic pressure and public finances continue to strain government spending.
Political parties are increasingly pointing to artificial intelligence as a future source of savings. Former Prime Minister Juha Sipilä believes AI could deliver savings of up to 8 billion euros, according to Ilta-Sanomat. The Centre Party forecasts a productivity gain of 1.5 billion euros over the next parliamentary term, while the Social Democratic Party has built AI-driven efficiency measures into its fiscal plans.
Concerns among trade unions and politicians
The announcement drew an immediate reaction from the trade union Union Pro, which represents many public sector professionals. The union warned that the government's emphasis on austerity risks weakening public services and placing excessive pressure on staff.
"Using artificial intelligence is sensible in itself, but at present it is being driven mainly by austerity considerations," Union Pro president Niko Simola said in a statement. "At the same time, its impact on employees and public services is being ignored."
The union stressed that AI should be introduced to improve productivity and service quality, not to serve as a justification for cutting staff. It also warned that artificial intelligence must be used with particular caution in public administration, since decisions often affect citizens' legal rights, equal access to services, and the handling of sensitive personal information.
Finland's Left Alliance called on policymakers to prepare for wider changes in the labour market. MP Jessi Jokelainen said Majanen's assessment reflects a realistic picture of AI's impact on employment, even if many find it unsettling. She said Finland has not developed adequate policy to prepare for large-scale changes in the labour market, and called for a broader political debate on how the economic value created by AI should be taxed. Jokelainen stressed that the country's tax system still relies heavily on labour, even though technology and data play an increasingly large role in wealth creation. She proposed exploring ways to tax work performed by AI, and repeated calls to strengthen income security, including introducing a basic income, alongside expanding lifelong learning opportunities to help workers adapt to technological change.
Which occupations in Finland's public sector will be replaced first?
The Ministry of Finance's plan foresees artificial intelligence mainly replacing people in administrative and customer service roles. The occupational categories most at risk are data entry and records staff. Document processing, archive management and the registration of standard applications in state and municipal institutions will be fully automated.
Finance and accounting assistants are also replaceable, since invoice processing, payroll calculations, the initial review of tax returns and the preparation of budget reports will become AI tasks.
Customer support operators – first-line communication such as phone calls, emails and chats – in welfare regions and municipalities will be taken over by AI assistants.
Benefits and licence administrators – the assessment of standard benefits, such as childcare or unemployment benefits, and simple permit applications where decisions are based on clear, quantifiable criteria, will be handled with the help of AI. Specialists such as doctors, nurses and social workers, on the other hand, will not be replaced, but AI will take over their administrative work, such as writing up medical histories and scheduling appointments, freeing them to spend more time working directly with patients.
How do Finns feel about entrusting their health and social data to artificial intelligence?
Finnish society has historically placed very high trust in public administration and technology, but concerns about data security and ethics remain high. According to a study by the Finnish innovation fund Sitra, Finns are anxious about privacy. They are wary of the idea that their sensitive medical data could be processed by foreign commercial AI models, such as tools from US companies, and the public is demanding the strict use of European or local AI models. Residents have expressed a strong wish for more information about exactly how AI affects their lives and how algorithms reach decisions. Finns worry about possible errors and discrimination, fearing that AI systems could make unfair decisions on benefit awards or misdiagnose health problems. Finland is therefore actively implementing the requirements of the EU Artificial Intelligence Act (AI Act) and building secure test environments – so-called sandboxes – to guarantee full data protection and citizens' rights before the platform is launched.
Similar artificial intelligence platforms in other European countries
Finland is not alone in pursuing "digital sovereignty", but its plan to build a single, shared platform for the entire public sector by 2031 is one of the most radical. Similar trends can be seen elsewhere in Europe. Germany, Poland, Spain and the Netherlands have officially committed to integrating so-called sovereign AI systems, developed specifically in Europe, into their public administrations. The goal is to end dependence on US tech giants and ensure that state data does not "leave" the jurisdiction of the European Union. Poland is actively developing its own open-source language models, such as PLLuM and Bielik, tailored specifically to the needs of public administration.
The European Commission is increasingly demanding that, in sensitive sectors such as defence and healthcare, public procurement give preference to European cloud and AI providers. Finland's project will serve as the leading experiment for the whole of Europe through to 2031.