Author: CPSAI

On Wednesday, the National League of Cities and Google Public Cloud unveiled a standardized evaluation framework for AI use cases in local governments. Alongside the framework, they released a public toolkit of resources to help cities adopt AI in compatible and standardized ways. This initiative aims to avoid an “AI divide,” where AI technology and governance vary widely across agencies. The effort complements a survey released by the National Association of State Chief Information Officers, highlighting that AI is becoming “fairly ubiquitous” in state government. The survey revealed that 72% of states have formal AI governance policies, and 61% have documented AI use cases in government services and administration areas.

In the private sector, OpenAI released an AI infrastructure blueprint that envisions AI being used responsibly by businesses and governments to enhance productivity and improve services. The blueprint outlines a potential role for the U.S. government in fostering AI development through initiatives such as AI economic zones and by integrating AI into public services.

At the federal level, the Department of Homeland Security (DHS) introduced a framework for deploying AI responsibly. The framework proposes regulatory standards for using AI in critical national systems, including power grids, water networks, and air travel infrastructure. Additionally, the Biden administration released a previously confidential framework from federal intelligence and security agencies. This document details how these agencies balance civil liberties with national security concerns when deploying AI or handling personal data.

State and Local AI Innovations

At the state level, Nebraska’s Chief Information Officer has reorganized its IT structure to support AI adoption better. By creating new departments focused on web services, cybersecurity, and AI governance, Nebraska aims to modernize its IT systems and workforce in preparation for broader AI integration.

In smaller municipalities, Covington, Kentucky, launched an AI-powered chatbot to serve as a customer service agent across all municipal services. The chatbot project was completed for just $200, highlighting how smaller governments can implement AI through cost-effective, in-house efforts. While many small cities lag behind state and county governments in AI adoption, initiatives like Covington’s demonstrate the potential for grassroots innovation. Meanwhile, Massachusetts is leveraging partnerships with local universities to develop AI use cases for government services. These collaborations aim to encourage students in AI and computer science to pursue careers in state IT, addressing workforce challenges in AI deployment.

International and Private Sector Updates

Internationally, the International Rescue Committee has integrated AI chatbots into its mobile apps to support humanitarian efforts. These tools are currently being deployed in El Salvador, Kenya, Greece, and Italy to assist local organizations serving displaced populations.

In related developments, the transition to the Trump administration has sparked discussions about the future of federal AI policies. The Secretary of Homeland Security has expressed hope that the incoming administration will retain the agency’s AI governance board, even as the executive order supporting it is expected to be rescinded. Meanwhile, reports suggest that many private companies are reconsidering their commitment to President Biden’s voluntary AI safety standards as these guidelines face an uncertain future.

After months of hard work, collaboration, and valuable feedback from government leaders, we are pleased to release AI Ready: An Evaluation Guide for HHS Agencies. A collaboration between the Center for Public Sector AI, U.S. Digital Response, Humane Intelligence, and the Aspen Institute Financial Security Program, this practical tool is designed to help HHS teams make informed decisions about AI adoption and proactively mitigate potential risks. This guide is the first in a series of best practices, tools, and frameworks we are building to support the safe exploration of AI in HHS service and benefit delivery. 

CPSAI is a non-partisan, nonprofit built for and by HHS leaders, with the mission of supporting HHS agencies in their AI journey.

The Future of AI in Government: What New Policies Could Mean for Innovation and Regulation

With President-Elect Donald Trump set to take office, there’s intense scrutiny surrounding the potential impacts of his policies on artificial intelligence (AI), especially in government. As reported by Time magazine, Trump has promised to repeal President Biden’s AI executive order, which laid the groundwork for AI staffing policies, ethics guidelines, anti-discrimination measures, and broad AI development and deployment across federal agencies. Such a move could substantially alter federal AI regulation and innovation landscape.

President Biden’s executive order on AI emphasized federal support for public and private AI safety research. It also promoted AI transparency, ethics, and security standards across agencies. However, as noted by Government Technology, Trump’s approach leans toward reducing federal oversight, emphasizing competitiveness with global powers like China. This deregulation is framed as a way to empower American AI companies, allowing them more flexibility to innovate without government-imposed restrictions. Supporters argue that loosening regulatory policies will stimulate growth in Big Tech and small AI startups. However, some experts worry it may diminish the emphasis on safety and ethical AI development.

Furthermore, according to Forbes, there is speculation that Trump’s policies will reduce federal backing for initiatives aimed at ensuring anti-discriminatory practices and voluntary AI safety and cybersecurity standards that were encouraged by the Biden administration. A potential reduction in regulation could speed up AI development but may increase concerns around accountability, security, and fairness.

In an unprecedented move, Vox suggests that Trump might issue an executive order launching a “Manhattan Project” for military AI. This would allocate substantial federal resources toward private-sector partnerships in developing AI applications for U.S. defense. Additionally, Trump’s plan to reinstate his 2020 Schedule F executive order, as covered by StateScoop, could make it harder for federal agencies to attract and retain top AI talent. Schedule F would reclassify certain government positions, making dismissing employees in policy-related roles easier. Federal agencies have long struggled to recruit and retain skilled AI professionals for modernization initiatives, and this reclassification could intensify those challenges, hampering the government’s ability to build AI capacity from within.

A Spotlight on State and Local AI Initiatives

In contrast to federal developments, state and local governments are making strides in AI innovation. This year’s “Digital Cities Survey” by Government Technology highlighted cities like Marietta (GA), South Bend (IN), Scottsdale (AZ), Long Beach (CA), and San Diego (CA) for their AI-driven improvements in city administration and public services. These cities offer encouraging examples of how AI can positively impact local governance and service delivery.

A survey conducted by Presidio, also highlighted by Government Technology, underscores both eagerness and caution among state and local government leaders regarding AI. CIOs and CTOs nationwide are excited about AI’s potential, yet concerns about data quality, cybersecurity, and legacy-system compatibility are still barriers to wide-scale adoption.

Local Leaders and the Role of AI in Government

A recent StateScoop interview with Alaska’s CIO highlighted promising state-level AI applications focused on improving service accessibility and efficiency. In Aurora, Illinois, the city invested nearly $140,000 to partner with the International Data Corporation Research to create a comprehensive AI ecosystem and policy evaluation framework for its government operations.

Federal agencies are also moving forward with internal pilot programs. The Air Force, for example, has developed an internal AI sandbox to explore AI-driven modernization, and the FAA recently sought vendors to supply AI solutions for analyzing flight data and assessing risks, signaling continued exploration of AI’s potential in government.

While government AI initiatives continue to unfold, we see clear priorities emerge: transparency, accountability, and responsible use. Across the country, cities and federal agencies are taking concrete steps to harness AI’s potential in ways that benefit their employees, residents, and partners.

A Look Back at 2023: AI in Review

Government Technology released a “Year in Review” series on AI in government, covering six major areas where AI has been making waves in the public sector. The stories recap the growth in AI use, from local tech pilots to federal policies. If you’ve been following the field, there may not be much new here, but it’s a solid overview of the year’s big AI moves across the government landscape.

NYC’s AI Action Plan: One Year Later

One year ago, New York City set an ambitious agenda for AI integration with its “AI Action Plan.” Fast forward to today, and the city has fulfilled or initiated 30 of the 37 action items it set out to achieve. The plan is expansive and includes critical steps such as setting up governance frameworks, creating a directory of AI applications in use, and establishing protocols for safely deploying new AI technologies.

In a recent StateTech podcast, Alex Foard, the Executive Director of Research and Collaboration at NYC’s Office of Technology and Innovation, shared insights into the city’s progress. As New York moves into the second year of its AI journey, its next big focus will be on partnerships—with public, private, and academic institutions—to help the city harness AI responsibly and effectively. NYC’s example highlights how a clear vision and accountability can drive meaningful progress in government technology.

Miami’s Bold New AI Agenda

This week, Miami turned heads with the announcement of an ambitious AI plan at the Southern Florida Digital Government Summit. The city is gearing up to make AI tools available to every city employee, beginning with Microsoft Copilot by the end of the year. Miami isn’t stopping there; the city also plans to launch a scholarship for local university students interested in AI, create an AI training course for small businesses, and lay out a full framework for AI acquisition, implementation, and governance.

Miami’s vision for AI includes integrating it into apps that make city services more accessible to residents. It’s exciting to see a city government prioritize AI in ways that directly benefit not only employees but also citizens and local businesses. This aggressive, multifaceted approach makes Miami a city to watch in the AI space.

Washington, D.C., Forms AI Advisory Group

In the nation’s capital, Mayor Muriel Bowser recently announced the formation of a districtwide AI Advisory Group. This task force is set to guide policy around AI and data usage within district government, helping create responsible practices for the entire city. The group is also developing workforce education tools and supporting district programs with the software development they need to make use of new technologies.

Washington, D.C., joins other cities in setting up dedicated teams to navigate the complexities of AI governance. With experts advising on everything from policy to practical application, D.C. aims to integrate AI responsibly, creating lasting benefits for its agencies and residents.

Georgia’s “Reverse Shark Tank” for AI Innovation

Georgia’s AI journey took a unique turn this week with updates on the state’s new “innovation lab.” Established in May, the lab will pre-qualify tech vendors for state agencies in a setup resembling a “reverse Shark Tank.” Agencies from Georgia—and eventually from other states—will be able to visit the lab, explore emerging technology, and connect with vendors that meet their needs.

This inventive model reflects a growing trend: states creating spaces for hands-on exploration of AI and tech solutions. It’s a way to demystify new technologies, bringing stakeholders closer to the innovations shaping their work. By facilitating direct connections between agencies and vendors, Georgia’s lab might become a model for collaborative tech exploration nationwide.

Federal Moves Toward Responsible AI

The federal government’s recent AI updates are brief but substantial. Here are the highlights:

• White House Executive Order: A new executive order on AI, expected soon, will set standards for transparency, deployment, and data security in federal agencies—a big step for responsible AI use at the national level.
• AI-Ready Data Systems: The Department of Commerce aims to release guidelines by the end of the year, providing federal agencies with a roadmap for developing data systems ready to support AI.
• AI Credentialing by GSA: The General Services Administration has rolled out a credentialing program in “AI Prompt Engineering” to help acquisition staff evaluate large language models.
• Expansion of DOD’s Responsible AI Strategy: The Department of Defense’s Chief Digital and AI Officers will soon be steering AI policy across multiple federal agencies, building on the Department’s Responsible AI framework.
• FTC’s Transparency Efforts: By the end of the year, the FTC plans to publish an inventory of its deployed AI use cases, aligning with broader calls for transparency in AI use.
• AI in Healthcare: CMS’s Chief Digital Services Officer discussed plans to establish an open-source program office focusing on AI applications that improve healthcare accessibility and fraud detection.

AI Legislation Momentum Grows

The Software Alliance (BSA) released a comprehensive report analyzing the recent surge in AI-related legislation across the United States. According to their findings, 693 pieces of AI legislation were introduced across 45 states and the federal government in 2024—a significant increase from 191 bills in 2023. The BSA draws a parallel to the early days of consumer privacy law in the mid-2000s and mid-2010s, suggesting that the rapid pace of AI legislation is only set to intensify in 2025. However, the report also warns that, unlike those privacy laws, there is currently no unified approach to AI legislation, creating a patchwork that may hinder effective governance. The report urges lawmakers to take a more coordinated approach as AI legislation expands.

Chatbot Adoption: Revolutionizing Government Services

A major report from the University at Albany, State University of New York, highlighted the widespread adoption of AI chatbots across local and state governments throughout 2023 and 2024. The study found that AI-powered chatbots have proven to be one of the most impactful innovations for government service delivery in decades. By deploying chatbots, agencies have significantly reduced administrative workloads, improved communication, and minimized customer support wait times. However, the report identified a key oversight: many chatbot implementations lack systems to track customer satisfaction and complaints. With AI governance becoming increasingly focused on accountability, this is an area where agencies need to catch up.

New Federal Guidelines for AI in Defense

The Biden administration has issued new rules to guide defense and intelligence agencies on using and deploying AI. The framework aims to establish consistent practices to help these agencies deploy AI responsibly, minimizing systemic bias and safeguarding civil and privacy rights. While the White House hopes these standards will accelerate AI adoption within defense agencies, some civil rights advocates, including the ACLU, have expressed concerns that the guidelines might not be stringent enough to prevent potential abuses.

Spotlight on DoD’s GigEagle Platform

In related news, the Department of Defense is scaling its AI-powered GigEagle platform, which matches personnel with specialized skills to temporary work opportunities across the Pentagon. This platform allows public sector employees to engage in 90-day specialized roles outside their regular duties, helping the DoD meet unique needs without hiring additional personnel. This system will soon expand to cover most DoD divisions, enhancing the Pentagon’s flexibility in talent utilization.

State and Local AI Developments

At the state level, Mississippi’s CIO announced efforts to create a state AI task force to help the state catch up on AI deployment. Albuquerque’s City Council also passed a resolution to establish a municipal AI working group focused on local AI governance. Meanwhile, several exciting new AI initiatives have been launched this week: California’s fire department is deploying AI to detect wildfires before they become serious threats, and the Los Angeles Metropolitan Transportation Authority is using AI to detect weapons in the metro. The National Archives is also piloting an AI-powered search system to enhance the complexity and precision of digital searches within the federal archives.

Podcast Highlight: AI and CMS

For those interested in deeper insights, StateScoop featured an insightful podcast interview this week with the head of the Center for Medicaid Services’ Digital Services team. The discussion covered integrating AI technologies into CMS services and administrative workflows—a promising area for improving efficiency and service delivery.

AI and Government Procurement Procedures

Civic Marketplace, a Texas-based government technology supplier, has partnered with the North Central Texas Council of Governments (NCTCOG) to provide local governments with AI-driven procurement solutions. This platform aims to streamline the complex and time-consuming procurement process. Enabling agencies to streamline contracting, compliance requirements, and improve overall process transparency. Further emphasizing this trend, NASCIO released a report summarizing discussions from its recent conference. The report consolidates the experiences of CIOs across the country, offering recommendations for using AI to improve public sector procurement efficiency.

State Initiatives in AI

Pennsylvania hosted its first “AI Horizons” summit, led by Governor Josh Shapiro, which marked a significant step in advancing AI in the state. Gov. Shapiro signed a collaborative agreement between Nvidia, the Pennsylvania state government, and research institutions, forming an AI research alliance focused on healthcare advancements. The summit, which convened 400 state policymakers alongside private sector and academic leaders, highlighted Pennsylvania’s collaboration with OpenAI, which reportedly increased state worker productivity through ChatGPT-assisted workflows.

Virginia finalized and announced the members of its AI Task Force, first formed earlier this year, as part of its broader efforts to harness AI responsibly. Meanwhile, the CTO of Washington, D.C. discussed D.C.’s “any door” initiative with Government Technology, highlighting how AI technologies are improving access to services, especially by tailoring online services to better meet individual needs.

Vermont and Connecticut’s AI inventory reports were also in the spotlight. These reports, recently analyzed by Government Technology, show that both states primarily use AI to enhance efficiency behind the scenes rather than in direct citizen interactions. Inspired by these efforts, a San Francisco supervisor has introduced legislation requiring the public release of a comprehensive inventory detailing how the city uses AI technology.

Federal AI Developments

At the federal level, the General Services Administration (GSA) integrated AI-driven facial recognition technology into the government-wide login service Login.gov earlier this month. However, this week brought reports of technical issues, with the Government Accountability Office stating that the facial recognition technology may not be compliant with government identification standards.

The U.S. Army announced its plans to scale up non-defense-related uses of generative AI, focusing on reducing administrative burdens and improving efficiency. The Customs and Border Patrol’s (CBP) AI strategy reveals CBP’s expanding use of AI for day-to-day administrative tasks and field operations, including translation and video analysis. The Department of Veterans Affairs also joined the federal AI wave by piloting two new AI chatbots to enhance administrative workflow efficiency.

Private Sector AI and Government Relations

In private sector news, the CEO of Scale AI, a leading generative AI startup, published an open letter urging congressional leaders to play a more proactive role in regulating AI. The letter called for increased funding for AI safety research, the establishment of standard data quality requirements for federal AI projects, and a clearer definition of roles for those working on AI deployment across the public and private sectors.

This push for regulation coincided with a new report from the Department of Labor, which recommended best practices for private companies integrating AI into daily workflows. The guidelines emphasize ensuring that AI implementations “expand equality, advance equity, develop opportunity, and improve job quality” as AI adoption grows.

You can read the full article here.

In an op-ed by Tony Holmes, “Upgrading Tech Skills for Municipal and State Agencies,” he emphasizes the importance of upskilling government technologists to keep pace with the rapid advancements in cloud technology and artificial intelligence (AI). As local and state agencies modernize their IT infrastructures, Holmes points out that skill gaps are increasingly becoming an obstacle. He advocates for a holistic approach to workforce development, combining best practices, continuous learning, and a culture of upskilling to address these needs effectively. Such programs not only foster technological proficiency but also improve employee engagement and retention.

Holmes also highlights the challenges of balancing AI integration with cybersecurity imperatives, particularly in light of the growing complexity of zero-trust models and the increasing frequency of cyber threats. To bridge this gap, he stresses the need for adaptable workforce members who can tackle a range of emerging technology challenges. Developing individualized learning programs and maintaining career advancement opportunities are key strategies to help agencies stay resilient and ensure their workforce evolves in line with technological demands.

Why Read This Article?

• Emphasizes the role of upskilling in AI and cloud adoption for state and local government.
• Addresses the balance between AI integration and cybersecurity
• Highlights workforce adaptability as a key enabler for successfully navigating technological advancements.
• Provides practical insights into workforce development strategies that can improve employee engagement and retention.

MITRE’s AI Sandbox and FedScoop’s AI Report

MITRE has launched a Federal AI Sandbox to advance the development of AI tools for specific agency missions. The Sandbox will serve as a testing ground for select models, refining their performance in a secure, expert-informed environment. Among the first projects in the Sandbox is an AI tool designed to improve Medicare sustainability, showcasing the potential for AI to enhance public services.

FedScoop published a detailed analysis of 29 federal agency reports submitted to President Biden on the status of AI implementation. The report identifies the following critical challenges faced by federal agencies:

1. Poor data quality and inadequate data management programs
2. Under-skilled workforces lacking AI expertise
3. Insufficient technology for testing and evaluating AI tools

Federal Agencies Prioritize Responsible AI Adoption and Governance

At NVIDIA’s AI Summit, the Chief AI Officer of the Cybersecurity and Infrastructure Agency emphasized the importance of human oversight in AI adoption. He urged federal agencies to ensure persistent human involvement to monitor and guide AI systems responsibly.

In other federal developments, the General Services Administration has announced that it will enhance the federal digital login platform, Login.gov, with optional AI-enabled facial recognition. Agencies will be able to adopt this feature based on their specific needs.

The Department of Veterans Affairs is also taking steps to expand its AI capabilities. It recently issued a Request for Information seeking partners to help develop comprehensive AI governance frameworks, ensuring responsible integration as AI becomes more central to its operations.

New York and Tennessee Focus on AI Collaboration and Automation

In state news, Governor Kathy Hochul of New York unveiled the formation of the Empire State Consortium, a group of seven research institutions dedicated to studying the safe application of AI across science, medicine, government, and other sectors. This collaborative effort aims to leverage shared resources to advance both state and national AI goals.

In Tennessee, the state CIO shared updates on the progress of AI adoption during an interview this week. The CIO highlighted the success of a recent AI vendor day, which showcased technologies from 23 vendors. As the state evaluates which solutions to pursue, it is also expanding its use of robotic process automation (RPA). RPA has already proven to be a valuable tool, driving significant cost savings across state agencies.

Connecticut Senator Leads Effort to Coordinate State AI Regulations

Connecticut State Senator James Maroney, a leader in AI regulation, is spearheading efforts to form a national coalition of state-level lawmakers focused on AI policy. With the absence of a unified federal framework, Maroney aims to align state regulations to avoid a “patchwork” legal landscape, where differing AI laws across states could complicate compliance and innovation. His goal is for states to collaborate on passing consistent policies, ensuring a more cohesive approach to AI regulation nationwide.

NASCIO Insights: AI Use Cases and Implementation Challenges

At the National Association of State Chief Information Officers (NASCIO) conference, StateTech published brief interviews with state CIOs highlighting the opportunities and challenges of AI adoption. These conversations provide a snapshot of how state leaders are navigating AI technology, with videos covering:

• Top AI Use Cases
• Top Challenges Facing AI Implementation
• Top Priorities for the Contemporary CIO

AI in Disaster Relief: U.S. Military’s AI Strategy in Hurricane Response

StateScoop reports that AI played a pivotal role in the U.S. military’s response to Hurricane Helene. AI-driven tools were utilized to manage resources effectively and target the most impacted communities, enabling swift and strategic relief efforts.

You can read the full article here.

The U.S. Department of Health and Human Services (HHS) is developing a new AI strategic plan, scheduled for release in January 2025, to enhance the agency’s operations across the healthcare and human services sectors. Micky Tripathi, HHS’s chief AI officer, outlined the plan’s broad scope at the NVIDIA AI Summit. He emphasized its role in areas ranging from healthcare delivery to public health. The strategy aims to integrate AI while balancing innovation with regulatory oversight, fostering internal efficiencies and external support for healthcare innovators.

Tripathi noted the department’s focus on ensuring AI drives innovation and establishes necessary guardrails to prevent unintended consequences. While promoting innovation in the private sector, HHS also intends to identify areas where government should step back and allow markets to lead. The strategic plan aims to reflect the evolving needs of the healthcare sector and define the government’s role in supporting or limiting AI use, ensuring responsible innovation without stifling progress.

Why Read This Article?

Federal AI Strategy: Insight into one of the largest federal AI deployments and how it aligns with public service goals.

Ethical Guardrails: Emphasis on creating ethical “guardrails” for AI

Balance of Regulation & Innovation: Illustrates a government-led strategy to manage the interplay between innovation and regulation

This week brings several significant developments at the intersection of government and AI technology, highlighting how states and cities across the U.S. are advancing AI policy, data infrastructure, and education.

Updated AI Policy Tracker Map

Government Technology has published an updated AI policy tracker map, marking a major shift in state-level AI governance. By early October, 33 states have formed AI Task Forces or equivalent bodies, up from just 26 earlier this year. This rapid growth shows an increasing commitment to formalizing nationwide AI oversight. The map also highlights which states have implemented significant AI regulations or governance policies, which are developing AI literacy and training curriculums for both public and private sector workforces. These developments reflect the growing need for structured, responsible AI integration at all levels of government.

New York City’s Data Modernization Efforts

New York City’s Office of Technology and Innovation has announced a major initiative to consolidate, reorganize, and update its city-wide datasets. This project is designed to optimize the city’s data infrastructure, enabling more effective deployment of AI systems. By modernizing and streamlining these datasets, New York is setting the stage for AI-driven improvements in city operations and public services, offering a model for other cities looking to harness AI’s potential.

California’s AI Literacy Law for K-12 Schools

In a groundbreaking move, California has passed new legislation requiring K-12 schools to develop and implement AI literacy curriculums. The law mandates that students be trained to use AI across key subjects such as math, science, and history, ensuring that the next generation is prepared for an AI-powered future. This forward-thinking policy positions California as a leader in integrating AI into education, addressing technological competency and ethical considerations.