AI Adoption, Governance and Impact

Artificial intelligence (AI) and machine learning are gaining ground in city, county and state governments nationwide. Test cases are moving toward mainstream use, helping agencies improve operational efficiency and streamline constituent experiences.

New research by the Center for Digital Government (CDG) bears this out. CDG interviewed 17 technology leaders from 15 U.S. state and local agencies in early 2025 to gather their perspectives on:

• Adoption. Agencies have deployed generative AI (GenAI) in places like contact centers. They’re also automating workflows, freeing human employees from manual tasks and accomplishing tasks in minutes that once took hours or days.
• Governance. Agency leaders are updating critical oversight and building guardrails to protect data and align AI outcomes with agency values.
• Impact. Agency teams are documenting their gains. One state agency, for instance, used GenAI to shrink a project timeline from 18 months to 45 minutes by automating the manual analysis of content and generating succinct information.

Along with its promise, however, AI poses significant questions about safety, fairness and trust. This report includes guidance from CDG and IBM experts to help agencies optimize AI use cases, navigate potential issues and prepare for what’s next.