Big Story: The Rise of State Government Digital Service Teams
Key Takeaways:
States are increasingly creating in-house digital service teams to modernize government services with a product and user-centered mindset.
These teams borrow heavily from private-sector practices, emphasizing agile development, design thinking, and rapid iteration.
Digital service teams are often positioned as internal consultants, helping agencies fix high-impact services like licensing, benefits, and permitting.
Sustaining these teams remains challenging due to hiring constraints, funding uncertainty, and cultural resistance inside government.
State governments are quietly reshaping how public services get built. Over the past decade, a growing number of states have launched dedicated digital service teams designed to tackle some of the governmentʼs most visible failures, like confusing websites, slow forms, fragmented systems, and services that donʼt reflect how residents actually live and work.
These teams typically operate differently from traditional IT departments. Rather than focusing on infrastructure or long procurement cycles, digital service teams work in small, cross-functional units that combine designers, engineers, product managers, and policy experts. Their mandate is narrow but powerful: pick a broken service, talk directly to users, redesign the experience, and ship improvements quickly.
The model has gained traction because it delivers tangible wins. States have used digital service teams to streamline unemployment insurance, modernize business registration, improve disaster-response tools, and simplify access to health and social services. Still, the approach isnʼt easy to sustain. Recruiting experienced digital talent into government remains hard, especially when private-sector pay is far higher. Teams often rely on temporary funding or political champions, making them vulnerable to leadership changes. And cultural friction persists, as agile, iterative methods clash with compliance-driven government processes.
Even so, the trajectory is clear. As expectations for digital government continue to rise, state digital service teams are becoming a core capability. The states that succeed will be the ones that treat these teams as long-term institutions.

Quick Hit News:
Michigan lawmakers have introduced a trio of bills to rein in hyperscale data
centers by banning new permits for facilities that consume more than 2 million gallons of water a day for consumptive use, requiring greater transparency
about water and power demand, and ensuring infrastructure costs donʼt get passed on to everyday ratepayers as tech giants expand across the state.
Nevadaʼs Secretary of State has rolled out Orion, a modernized online portal for business licensing intended to improve the user experience and reduce friction for entrepreneurs. Work on the portal began in 2023, and the state reports that the next major phase is scheduled for 2026, as Nevada continues to replace older workflows with a consolidated digital system.
Los Angeles-based startup Automotus has raised $9 million to expand its
computer vision-powered curb management platform, which helps cities and airports track commercial vehicle activity, automate payments and
enforcement, reduce double parking and congestion, and turn chaotic curbs into safer, higher-revenue, lower-emission zones for residents and local
businesses.
New York State Police is creating a dedicated technology team within the
Office of Information Technology Services to better support its mission-critical public safety systems and agency-specific needs while still leveraging
statewide shared IT services like AI and cybersecurity. The unit is currently hiring and already working on projects such as modernizing the trooper entrance exam application to improve mobile usability.
For the Commute:
Inside Jax Hub: Corporate Innovation as a Growth Engine (News4JAX)
L Marks CEO Daniel Saunders joins Kent Justice to introduce Jax Hub, a new corporate innovation initiative rooted in Jacksonville but connected to a global startup network. They outline how the program will accelerate fintech growth, pair local companies with emerging ventures, and deepen collaboration among businesses, universities, and international partners. The goal is to position Northeast Florida as a premier innovation hub where regional firms can test new ideas, attract talent, and scale without leaving home.
Resources & Events:
📅Workday Federal Forum (Washington, D.C. - February 3, 2026)
This federal workforce and HR modernization forum focuses on human capital management (HCM) in the public sector, exploring how AI and modern tools can streamline recruitment, skills-based hiring, workforce planning, and employee engagement. Attendees will hear from government and industry leaders about transforming agency HR systems to build a resilient, adaptable workforce and unlock efficiencies across the employee lifecycle.
📅Tech Expo at Fort Meade (Fort Meade, MD - February 3, 2026)
This on-site technology expo brings together government and industry professionals across defense and intelligence communities to explore emerging mission-focused technologies. With 20-50 exhibitors typically showcasing innovations across cyber, communications, AI, and other domains, the event offers a hands-on forum for networking, live demos, and evaluating solutions that support mission requirements.
📊 Report Spotlight: U.S. Customs and Border Protection: Artificial Intelligence Use and Reporting (CBP)
This directive lays out CBPʼs governance framework for how AI systems must be reviewed, approved, tracked, and monitored across the full lifecycle, from planning and development through deployment and retirement. It clarifies roles and reporting requirements, and calls for risk assessment protocols, including high-impact determinations and AI Impact Assessments for systems that could affect civil rights, safety, or access to services. Read→
Insight of the Week:
More state corrections leaders and community partners are turning to secure tablets and digital tools to modernize re-entry, giving people behind bars 24/7 access to education, job readiness resources, and re-entry planning so they can build digital skills, explore careers, and connect to support services long before release, ultimately aiming to cut recidivism and strengthen public safety.
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