As state governments continue to explore responsible artificial intelligence (AI) usage for constituent service, agency leaders are simultaneously optimistic and cautious about the developing technology’s impact on their organizations and processes. AI solutions can streamline agency operations and enhance human capabilities but implementing them adds myriad considerations to IT modernization strategies. It’s crucial that any AI or generative AI (GenAI) tool state agencies introduce is created with human-centered design principles in mind to add value for state employees, not obstacles. Here, we explore common AI challenges faced by state and local agencies and six best practices to guide AI adoption strategies.
Efficiency and Accessibility are Top-of-Mind for Agency Leaders
It was no surprise to attendees of the NASCIO Annual Conference that AI once again dominated the conversation. State technology leaders explored use cases and obstacles that are top of mind for government agencies, including budget and staffing challenges, system replacements, new ways of operating, and better, more efficient constituent service. Despite early concerns about the impact of AI on workforce and privacy, the newest State CIO Survey, which was released during the conference, revealed that CIOs are determined to “match the pace of change” to deliver exceptional service to constituents.
Many factors are shaping state approaches to AI. The availability of technology and resulting changes in constituent expectations from their interactions with government services are a significant driver of state AI advancement. But states also face pressure from the federal level. A Department of Justice mandate established a quickly approaching deadline for all state government websites and mobile applications to meet accessibility criteria for users with disabilities. Even with the recently announced one-year extension, the added requirements further complicate state efforts to implement AI in a timely manner on limited budget without sacrificing functionality or security.
Best Practices to Unlock AI’s Potential
State agency leaders aren’t alone in feeling these pressures. A report from TCS – Tata Consultancy Services revealed that executives and technology leaders across industries are facing similar challenges. The study’s findings regarding these challenges, the current state of AI, and goals for future use informed six best practices that can guide state governments‘ AI implementation strategies.
1. Focus on the value, not the technology
As public and private sector organizations continue to adopt AI solutions, agencies may feel pressure to implement an AI system as quickly as possible and find uses for it as they learn how it works. Another approach is to “start with a top-down vision to enhance value and then engineer and orchestrate activity-specific purposive AI agents,” recommends Dr. Harrick Vin, Chief Technology Officer at TCS. By starting with a strategy based on use cases, states can put AI to work supporting the mission.

2. Adopt a value chain-based approach
There are two main approaches to AI implementations: horizontal scaling and value chain scaling. Horizontal scaling applies an AI solution to a specific task or function across the state, such as data analysis. The other approach, value chain scaling, takes one value chain, such as finance, and identifies and applies AI solutions based on that value chain’s needs. With this approach, each department within an agency can use AI where they need the support most.
3. Make state agencies and cultures AI-ready
Preparing for AI will likely require significant changes to agency workflows, which can cause concern for both leadership and staff. Fostering a culture that embraces change, experimentation, and continuous learning is critical to AI adoption and success. Change management processes can help to build an understanding of how new technology will enhance employees’ jobs, not replace them. Willingness to embrace change will make AI implementation easier and also smooth the process of preparing infrastructure and data for AI.

4. Develop higher-level relationships with constituents
As states use AI solutions to interface directly with constituents, they need to ensure that the technology enhances the customer experience, rather than detracting from it. While part of that goal relies on technology, improving customer experience with personalized, proactive connections requires knowing who the constituents are and what kind of experience they want to have. This information can come from public forums and meetings, surveys, or post-interaction feedback. Paying attention to established design practices meant to enhance user experience can give agencies a head start on building tools constituents actually want to use.
5. Don’t go it alone
AI implementation is complex, and handling the work in-house can be daunting. Leveraging external expertise and resources can help relieve IT teams of some of that burden. Partnering with a technology service provider gives agencies access to specialized skills and knowledge and allows IT to focus on their core competencies and strategic objectives. Beyond partnering with external experts, open-source AI tools and frameworks offer a wealth of resources that states can leverage to reduce development time and costs.
6. Plan for success, not scarcity
Opinions on how AI will affect the workforce are split, with some concerned that implementing AI will eliminate their job functions. However, the impact of AI may depend on agency strategy. The TCS study found that among respondents reporting greater AI success, four in five focused on growth and innovation rather than cutting costs. By planning for AI to support employees, agencies can prepare to create new jobs and enhance human capabilities.
Conclusion
AI, when combined with strategic thinking and creativity, has the potential to enhance agency capabilities and deliver consistent value to constituents. These best practices, inspired by human-centered design principles, can guide state governments to create an AI strategy that’s fit for purpose, and can adapt to ever-changing mission demands and technological advancements.
