Uncovering the true state of digital government

Governments everywhere are trying to drive efficiency while providing better service to citizens. For most, this means looking to technology to grow and optimize their digital reach toward constituents, streamline operations, and deliver exceptional digital self-service experiences. Many government agencies have been working on digital transformation for many years — some for decades — with those efforts accelerated by world events and technological advances. But how are those efforts going?

The Data Behind Digital Government Modernization

There is data out there that highlights the importance of digitizing government services and operations. There are even a few reports that spotlight progress for certain sectors or use cases. But there are scant resources available that examine the impact digital transformation is having across the public sector.

At Granicus, our 7,000 government customers generate over 30 billion digital interactions each year across our platforms. Those touchpoints are leveraged by organizations to improve their own operations and shared annually through our annual series of benchmark reports. But the raw data only tells a portion of the story.

To dig deeper into how government agencies are progressing in their modernization efforts, we reached out to 1,400 government leaders to get a better understanding of how they’re using digital solutions to drive efficiency and better outcomes, where they see opportunities to improve, and how they think emerging technologies like artificial intelligence will come into play. We then combined those responses with our internal data to identify the most impactful trends affecting digital government in 2025.

We compiled those insights into our first State of Digital Government report. Packed with real-world perspectives from government leaders and an unprecedented repository of data and benchmarks on digital government trends, this report provides relevant, actionable insights into how governments at every level are dealing with:

• Understanding, reaching and engaging served populations.
• Building digital experiences to address vital needs and issues.
• Operational challenges and opportunities to improve experiences.
• The role of developing technologies such as AI.
• What are the key drivers for accelerating digital government.

A Unified Vision for Digital Government

This research uncovers how state and local governments are focusing on three core pillars in their digital modernization initiatives: communication and engagement, efficient operations, and seamless service delivery. These areas are not only interconnected but also essential for understanding, growing and serving government audiences.

Engagement is increasingly driven by digital tools. Nearly 70% of program engagement practitioners use online platforms to reach, inform and query citizens. These tools enable targeted outreach and notifications, sentiment analysis, and two-way communication, helping governments understand citizen needs and interests, tailor their communications and guide them to relevant online resources. But achieving these outcomes requires agencies to have sufficient digital reach toward their served populations – an area in which most governments are still falling short.

Operations are also undergoing a digital overhaul. Clerks and public records managers are using technology to streamline public meetings, manage records, and ensure transparency. Yet, challenges persist. The complexity of public records has surged 56% since 2018, driven by increased request volumes and larger file sizes. And while automated tools have helped improve public meetings management, gaps remain—only 20% of agencies offer closed captioning for example.

Service delivery is perhaps the most visible area of transformation. Governments are seeing a dramatic rise in digital form usage, with an 80% increase in completions in the last year alone. Citizens are embracing self-service options for tasks like paying bills, applying for permits, and accessing public services. This shift not only improves the user experience but also frees up staff to focus on more complex needs.

Addressing Operational Challenges

Despite these advancements, the report identifies several roadblocks. One major issue is the disconnect between digital demand and internal capacity. While automation and AI offer promising solutions, many agencies have yet to fully integrate these tools into their workflows. Operational inefficiencies also plague service departments. Poorly designed websites, limited search functionality, and confusing customer journeys often lead to abandoned forms and frustrated users.

Building Better Experiences

By creating intuitive, easy-to-access digital experiences, governments can better serve constituents while also reducing costs. Websites that are mobile-friendly and easy to navigate not only improve service delivery but also result in fewer costly calls and walk-ins. Moreover, digital tools enable governments to collect and analyze data that can inform policy, enable tailored outreach, and improve services.

Turning insights into action

The 2025 State of Digital Government report offers a roadmap for government agencies seeking to accelerate their modernization efforts. It emphasizes the importance of breaking down data silos, investing in citizen experience, and adopting a unified digital strategy. While challenges remain, the momentum is clear: digital government is no longer a future goal—it’s a present necessity.

Download your copy now to get the data and insights you need to accelerate your agency’s digital transformation.