Top 12 Data Science Use Cases in Government

4 min read

Big data analytics has been applied to different spheres of human life. One of the best features of data analytics is its adaptability and wide application specter. We have come through the whole series of articles concerning data science application in various spheres that are proving this statement. Let`s consider data science use cases to government activity. 

Under conditions of the rapid development of technologies and societies, governments need to solve complex tasks and manage various procedures simultaneously. Governments face the need for smart platforms capable of collecting, cleaning, filtering and analysis of vast amounts of data. Local governments, federal agencies, and departments use data-driven tools to optimize their work and improve the matters of security, public sector, law, defense, etc.

Let’s get a closer look and make it clear how governments use data science and what benefits can it bring. 

Every year fraudulent transaction cause significant financial loss to the governments. Fraud has become a common thing. This fact may seem striking to you but let’s look around. All operations that are more or less related to money present interest to potential fraudsters.

The key feature of the fraud on the governmental level is that the consequences to some extent will touch each citizen.

To mitigate the risks of fraud and following threats, governments apply smart data solutions and data analytics. 

Tax evasion presupposes the actions taken by the individuals or companies to misrepresent the real affairs to the tax authorities. Dishonesty in tax reporting like declaring less income helps to reduce tax liability. In other words, people or companies show less money with the purpose to pay less money to the state. Just imagine the amount of data that should be processed and analyzed to find an evader. This is really beyond human competence.

Luckily, modern analytical platforms and solution are capable of detecting tax evasion. The analytical algorithms used for this purpose rely not only on the financial data but also on social media information. The algorithms carefully go through the data and match the spenders` patterns to the incomes they declare. Thus, those who spend far more than they have are easily detected.

The group of de-registered firms covers those enterprises that are not enrolled in the register anymore, gave up trading and are not subjects to legal liabilities and taxation. However, such firms can be easily brought back to life in case of need.

This fact provides a vast field for fraudulent activities. Quite often, the companies are no longer in the register, yet they continue their operation and finally, get income.

Analytical algorithms and AI-powered solutions are helping the governments in this respect. The algorithms track the activity even for those companies that seem inactive and alarm in case of suspicious actions taken. The algorithms detect the appearance of the company name or other information among the financial data. The disclosure of the de-registered firms helps the state to minimize and even prevent illegal avoidance from tax payment.

Defense matters are crucial for every state in the world. Every year governments all over the world spend billions of dollars for defense.

A significant part of this money is spent on the introduction of big data, machine learning algorithms, and AI-powered solutions to improve the performance of various military departments and institutions. Empowered by the smart data solutions these institutions can improve the decision-making process and reduce the time spent on the solution of a particular matter.

In the field of defense, the importance of big data is enormous. With the introduction of real-time analytics, the states got an opportunity to watch, track and monitor the borders, create multiple video streams from various strategically important objects, and watch over the air and navy spaces.

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Yves Mulkers

Yves Mulkers is the founder of 7wData and a widely followed voice in the data and AI community. He curates the 7wData and AI Beat newsletters, reaching hundreds of thousands of data and AI professionals, and writes on data strategy, analytics, AI, and the evolving data ecosystem.