Planning, Budget, and Aid Coordination

Building Confidence to Use AI in Government: Supporting Tuvalu’s Temporary Household Cost of Living Scheme through Te Ao

In 2026, the Government of Tuvalu introduced a temporary household cost-of-living scheme to provide temporary financial assistance to households experiencing economic pressure.

The scheme required over 1,000 handwritten applications to be processed within a short implementation period. At the same time, the Ministry of Finance and Economic Development (MFED) was progressing broader public financial management reforms under Te Kete and the Te Ao economic governance partnership.

In May, a Senior Planning and Budget Adviser was engaged through Te Ao, to support planning, budgeting and financial management systems.

Staff within MFED’s Planning, Budget and Aid Coordination Department were responsible for processing the applications. Manual data entry was time-consuming and risked data-entry errors and slowing delivery of support payments within a limited June-August implementation period. The Ministry sought a practical way to process applications more efficiently while maintaining oversight of eligibility assessments and payment preparation.

Rather than creating a separate system, the Ministry supported by the adviser, explored how existing government resources, including its secure, enterprise Artificial Intelligence (AI) subscription, could support the work.

The adviser worked alongside Ministry staff to introduce an AI-assisted process that converted handwritten application data for review and payment processing. Government staff remained responsible for checking, validating and finalising the information.

As a result, 1,233 applications were processed to the end of September 2026, with staff reporting a significant reduction in manual data entry time. On average a form would have taken 4-6 minutes to process manually, whereas the AI process reduced this to approximately 1 minute per form, representing a saving of between 60 to 100 hours of team effort. Over 50% of the population has been deemed eligible for cost-of-living relief and payments have been processed for the three-month period to all households.

Alongside implementation support, five Ministry staff (four women, one man) were trained on AI fundamentals, data security, risks and the appropriate use of government-approved systems. Those five members then trained another three staff (all women).

The most visible change is growing confidence among government staff in using AI as a practical workplace tool. Staff involved in the scheme gained exposure not only to the potential benefits of AI but also to the risks associated with data privacy and the importance of using approved government systems for government work.

Staff who participated in the initial training shared knowledge with others, extending the reach of the training beyond the original participants. This suggests knowledge is beginning to be retained and transferred within the Ministry rather than remaining dependent on external support.

Staff also reported that the AI-assisted approach reduced the need for manual typing and made the process faster. Sector Economist, Savali Toakai, said the experience demonstrated how AI could support everyday government work. “AI makes my work easier and faster.” while also estimating that the approach generated substantial efficiency gains compared with manual processing.

Knowledge from the initial training has since been subsequently shared by the trained staff with more colleagues, increasing confidence within the Ministry to use AI. The Ministry has shared the experience using AI with other Ministries responsible for similar schemes, including the newly introduced financial support for children below the age of 6.

In addition to AI training, an introductory Microsoft Excel training program was delivered to the same Department to improve skills in formatting, data cleansing and other useful functions. This training was delivered to five Ministry staff (four women, one man).

Sector Economist, Tavau Aloseta, said that ‘technology is the best!” Tavau explained that since the training was delivered to her by the Te Ao Adviser, she has used the government subscription often and encourages her colleagues to use it also. Recently, Tavau was on a training program and was required to create a dashboard report. As Tavau was using confidential government information, she used the government subscription to ensure the information was protected, something she learnt in the training.

This work highlights how creatively integrating existing digital tools can be used to support the delivery of services, addressing capacity challenges while building skills within government.