Big Story: Scaling AI in Government

Key Takeaways:

  • AI adoption across U.S. states and cities remains fragmented, with most efforts still in pilot stages.

  • Scaling requires adaptive policy frameworks, sustainable funding, smarter procurement, and workforce development.

  • Over 30 states have issued some form of AI guidance, but few have comprehensive implementation strategies.

  • Training and cross-sector collaboration will determine how effectively governments use AI for service delivery.

State and local governments are embracing AI to improve efficiency. From Indianaʼs chatbots that assist with legislation queries to Vermontʼs transportation agency, using AI to assess road quality, AI is rapidly gaining traction. But integration remains uneven. RAND researchers argue that governments must evolve from experimentation to systematic deployment, utilizing clear definitions of AI by sector, developing adaptive policies, and maintaining inventories of ongoing applications.

While some states, such as Massachusetts, have allocated billions through their FutureTech Act for digital infrastructure, most agencies rely on short-term or expiring federal grants. Modern AI systems also risk obsolescence during lengthy procurement cycles, prompting experts to call for faster, ethics-focused vendor partnerships and performance-based contracts.

Workforce readiness is another key barrier. RAND highlights programs like the GSAʼs AI Community of Practice and the Partnership for Public Serviceʼs AI Government Leadership Program, which trains officials on responsible AI governance. Universities such as Stanford and Michigan are also developing AI policy tracks within public administration degrees.

Ultimately, success depends on leadership and collaboration. Governors, CIOs, and legislators must coordinate to establish governance standards and ensure that AI support does not replace human judgment. Governments that take these proactive steps today will define the framework for ethical, scalable AI-enabled governance in the decade ahead.

Beyond governance and procurement, defining the AI domain by domain is crucial when scaling. Many governments treat “AIˮ as a monolith. But in practice, it needs sector-level strategies (transportation, social services, etc.). Over 30 states have already published some form of AI guidance, but few maintain a full inventory of deployed systems or a framework for consistent evaluation. To close this gap, governments must adapt policies over time as use cases evolve and as public expectations shift.

Finally, capacity building and institutionalization are essential. Governments must invest in training, promote roles like AI governance leads, and integrate evaluation loops into every AI deployment. According to RAND, in 2024, about 150 state bills on government AI were considered, but only 10 legislatures required comprehensive AI inventories, underscoring the gap between ambition and oversight. Without ongoing monitoring, ethics review, and public disclosure, AI programs risk drifting out of alignment with public values.

Quick Hit News:

  • Law enforcement leaders are adopting Truleoʼs new AI analyst tool to

    automate reporting, compliance, and performance tracking. By integrating with existing systems, it streamlines data analysis and reduces administrative workload, allowing chiefs to focus more on leadership and public safety. Read →

  • After a decade of development, the Driver Alcohol Detection System for Safety (DADSS) is ready for rollout, using infrared sensors to detect driver

    intoxication through breath. Automakers plan to integrate the tech into new vehicles as regulations move toward mandating anti-drunk-driving systems. Read →

  • Miami-Dade County is testing the nationʼs first self-driving police vehicle, PUG (Police Unmanned Ground), equipped with cameras, sensors, and drone

    capabilities to enhance patrol coverage. Initially staffed by a deputy, it will later operate autonomously to boost safety, visibility, and efficiency without replacing human officers. Read →

  • Jeffrey Weiner has been named Concord, Massachusettsʼs new CIO, taking charge of IT, GIS, the Minuteman Media Network, and strategic digital

    initiatives after a decade with Wakefield Public Schools, where he dramatically reduced phishing incidents by 60%. Read →

For the Commute:

AI’s Impact on People and Culture (The Fractional Source Podcast, Episode 7)

In this episode of the Fractional Source Podcast, hosts TJ Kennedy and James Mitchell discuss the profound impact of AI on human change management with human capital leader Mercy Noah . They explore the benefits and potential pitfalls of AI, emphasizing its role in improving productivity, communication, and strategic planning within organizations. Mercy offers insights into AI literacy, adaptation, and balancing human interaction with AI tools. The panel highlights the importance of maintaining human connection and empathy while adopting AI technologies, and provides practical advice on how organizations of all sizes can successfully implement AI to complement rather than replace human efforts.

Resources & Events:

📅 North Carolina AI & Cybersecurity Symposium 2025 (Raleigh, NC - December 3-4, 2025)

State, local, and higher-ed leaders will convene to explore how AI and cybersecurity intersects in public service, from defending critical infrastructure and identity systems to designing governance, cloud security, and workforce resilience. Details →

📅 Missouri Public Sector Cybersecurity Summit 2025 (Jefferson City, MO - October 29, 2025)

The summit will spotlight responsible AI adoption in public service, where attendees will explore AI trends, data governance, ethical frameworks, collaborative procurement, and applications in transit, safety, and civic operations. Details →

📊 Report Spotlight: Iowaʼs Procurement Strategy Is a Blueprint for Election Security (Government Technology, 2025)

Iowa modernized its outdated voter registration system by adopting the cloud-based Civix Election Management Suite on AWS GovCloud, improving security, flexibility, and data access. Through a transparent, research-driven procurement involving county officials, the state created a modern, efficient, and secure election system that serves as a model for others. Read →

Insight of the Week:

As 2026 nears, the gov tech market is poised for continued expansion after a record year of deals and investments. EQT and CPP Investmentsʼ $3 billion acquisition of NEOGOV marked one of the largest transactions in sector history. Firms like Envisio reported 110 % growth in new bookings, and Tyler Technologies logged a 10.2 % revenue increase to $596 million in Q2 2025, underscoring rising demand for AI, SaaS, and performance management tools. Despite federal budget tightening, state and local modernization spending remains strong as agencies prioritize efficiency and cloud migration.

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