Skills and dynamic capabilities for generative AI: embracing the Industry 5.0 paradigm and nourishing innovation in public institutions

IMPACT: This article provides a practical roadmap for public sector practitioners, particularly senior policy-makers, digital transformation officers, and public administration leaders, seeking to navigate the integration of generative artificial intelligence (GenAI) within their institutions. It highlights how cultivating dynamic capabilities (sensing, seizing, and transforming) alongside technological, digital citizenship, and classical skill sets can enable governments to innovate responsibly and effectively under the Industry 5.0 paradigm. By introducing the ‘purple leader’ framework, the article equips managers with actionable guidance for balancing technical proficiency and strategic leadership in artificial intelligence (AI) deployment. Practitioners can use the proposed Public Sector AI Maturity Model to assess readiness, guide workforce reskilling, and align policy with emerging digital ethics standards. In real-world terms, these insights can transform how governments approach innovation, closing the gap between technological potential and practical execution, and ensuring AI systems enhance transparency, accountability, and citizen-centric service delivery.