Modernizing government: The role of AI and automation in government innovation
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COMMENTARY | The tech is vital in governments’ modernization efforts, but a fundamental rethinking of how services are delivered in the digital age is also required.
Rapid adoption of artificial intelligence is revolutionizing the way almost every company does business. In fact, according to a recent survey, 91% of respondents reported using generative AI in their organization, demonstrating its rapid adoption as a mainstream tool for driving innovation, efficiency and competitive advantage.
As AI innovation continues in the private sector, government agencies of all sizes are developing new ways to use AI to meet the needs of their constituents. The federal government has set an explicit goal to accelerate AI adoption in government.
In addition to the innovation push at the federal level, more states are adopting AI and digital modernization plans. For instance, Virginia established an AI Innovation Fund aimed at modernizing its IT systems and Arkansas launched a statewide AI pilot focused on public benefits administration, both signaling a shift toward smarter, more efficient government operations.
To meet rising expectations for accountability and efficiency, states must use these new funds to optimize costs, decision-making, and constituent service quality, with traditional and agentic AI — autonomous systems that can set goals and take action with minimal human input — at the core of their strategies.
Modernizing through AI is now an essential element of improving government operations. AI makes administrative duties more effective and less costly. By automating menial, repetitive tasks, AI tools free up public servants to focus on the work that requires human ingenuity, driving a much more efficient use of taxpayer dollars. This keeps human judgment at the center of government services and programs, without falling behind the private sector in productivity.
AI systems also support agile agency decision-making through predictive analytics. Agencies can utilize machine learning tools to make better use of their extensive datasets, turning numbers into action. This technology is already in use. One state health department uses predictive analytics in community care, using the system to identify at-risk residents by analyzing large sets of historical health data, empowering public health officials to intervene early.
Similar analytic capabilities can assist leaders in resource allocation, agency performance evaluation, emergency preparedness and almost any other data-powered, decision-making process.
Generative AI can make government systems’ front-facing technology easy and simple for constituents. AI assistants streamline the application process for permits and grants, navigate complex codes and bylaws to aid with compliance, provide 24-hour customer service support, and more. These tools enhance the citizen experience, building trust, not frustration, with each agency interaction.
Recently, the City of Kelowna in British Columbia, Canada, embedded automation and generative AI across areas like building permits, recreation, and general city information. They built interactive bots that provide constituents with landfill and snow removal schedules, as well as AI assistants to help with permit applications, speeding up the turnaround from months to just a few days. These implementations improved the constituent experience, while also identifying additional opportunities that could save Kelowna $1.4 million annually.
The moment is right for agencies to move beyond outdated technology and embrace AI-powered modernization of government services. But modernization isn’t just about upgrading systems — it requires a fundamental rethinking of how services are delivered in the digital age.
That means deploying citizen-facing AI agents to streamline housing and permit workflows, using predictive analytics to guide public health or emergency response and creating real-time updates that reduce wait times and increase public trust.
Agencies that delay AI adoption risk greater inefficiencies, higher costs and reduced capacity to meet public needs in an increasingly fast-paced environment. While evolving regulations will be critical to guide this transformation, fear of complexity or the unknown should not hinder progress.
Success starts with a clear strategy: assessing organizational readiness, identifying high-impact use cases and prioritizing responsible, scalable implementation. The future of government is smarter, more efficient, and more resilient — with AI at its core.
This is a rare opportunity to reimagine how government delivers for its citizens. By focusing on practical applications and responsible governance, agencies can modernize operations, improve public trust, and deliver better results for the people it serves.
Robbie Beyer is director of machine learning and AI and Paul Seckar is a principal for data and digital services at RSM. Both are leaders in government consulting, with a focus on helping government organizations harness AI and automation to modernize services, improve efficiency and deliver measurable public value.