This chapter explores the role of funding and procurement in supporting AI implementation in public sector services worldwide. As governments aim to enhance efficiency, consistency, and resource allocation, ethical considerations and robust oversight become crucial. Examining AI use cases—such as facial verification tools and prediction systems—reveals significant risks, including racial biases, false arrests, and privacy breaches. To counter these, the chapter discusses different approaches and strategic funding models, emphasizing the need for AI-specific procurement guidelines and adaptable funding to encourage innovation while managing risks. Estonia’s e-government practices serve as a case study for effective AI adoption through collaborative efforts with academia and the private sector. The chapter outlines strategic recommendations for procurement, flexible funding, and community-driven innovation through open data. It also underscores the benefits of public–private partnerships and real-world testing environments. This chapter offers insights for both governments and organizations that seek to implement trustworthy AI solutions that align with societal expectations and ethical standards.