AI in action: Bringing innovation to state and local government, higher education

As AI becomes central to everyday operations, state and local governments are looking for practical ways to apply the technology where it can have the greatest impact. Leaders are exploring the potential for AI to elevate the resident experience, improve teaching and learning, and ease daily burdens for agency workers, faculty and staff.

In the recent podcast series from GovExec, sponsored by Deloitte, “AI in Action for State and Local Government,” experts from the company discussed how agencies and institutions can move AI from early exploration to practical, mission-focused use.

Making public benefits easier to navigate

In state and local agencies, determining who qualifies for benefits and getting them enrolled quickly and accurately is a highly complex function, and AI has the potential to make the process clearer and more responsive for both residents and workers.

For residents, benefits intake can feel like an obstacle course. Most eligibility systems rely on long, static forms. If a user makes a mistake or leaves a field blank, they often do not find out until weeks later, explained Hardik Machhar, growth leader and digital transformation leader for AI adoption and products at Deloitte.

“AI can change that dynamic completely by making intake more conversational and guided,” he said. It can surface missing information early, before submission, so people complete applications accurately the first time.” 

AI also offers significant workforce opportunities for time savings. A great deal of caseworker time is absorbed by administrative activities such as status check calls, document requests and routine case notes. If implemented correctly, AI can help lighten that burden.

“The design choices in the world of AI matter enormously. Plain language, multilingual support, mobile-first interfaces, accessible design, and a clear path to a real human when the technology isn't working: These aren't add-ons,” explained Machhar.

Beyond technology, agencies also need to support the cultural transition that comes with AI adoption, starting with a clear focus on augmentation rather than replacement. When AI removes repetitive administrative work from employees’ plates, workers can spend more time on higher-value interactions with the people they serve.

To bring that to life, AI experiences need to be designed with frontline staff in mind. “We use human-centered design and direct worker feedback to identify where AI can actually enhance or accelerate the day-to-day workflow,” Machhar said.

For caseworkers, managing dozens of cases simultaneously can be a significant cognitive lift. Deloitte’s AI Buddy can help by extracting relevant case information and recommending next actions, so staff spend less time searching for information and more time making decisions that affect families and drive outcomes.

To combat payment errors, AI can review cases and flag risks. In intake, Deloitte’s AI assistant Ellie is helping transform the constituent experience from end to end. “What ties all of these together is that none of them are about replacing the worker, they're about removing the friction,” explained Machhar.

Helping higher education adapt with confidence

In higher education, AI is reshaping the campus experience, from student engagement and academic delivery to research and administration. With predictive analytics, it is also helping universities respond more effectively to changing student and institutional needs.

“Are there things that you can predict that might be relevant to help students be more successful over time? That's one big component,” said Tamara Askew, principal and national lead for AI in higher education at Deloitte, and government and public sector lead alliance partner for NVIDIA. “We use tools like Candidate 360, a Deloitte-owned tool that we've built for universities that helps inform things like enrollment and retention risk.”

Askew pointed to three areas where AI can dramatically improve higher education: research, back-office operations, and teaching and learning.

With AI, researchers across the globe can generate insights much faster, opening the door to new discoveries. To support that work, Deloitte is delivering high-performance compute services that help institutions focus less on the AI model itself and more on the research outcomes it can enable.

That infrastructure also supports AI tools that improve the student experience. “We can use all of the data that we have to help students be more successful, to understand what is the right combination of classes for a student to advance in the workforce, or even … the right order of classes for a student to successfully matriculate,” said Askew.

On the operations side, Deloitte has a tool that sits on top of complex and fragmented legacy student information systems. Many universities use different student information service tools, which can make it challenging to keep track of information and get true value from those systems.

To streamline processes and bring valuable information to the surface, Deloitte’s AI-powered solution supports data profiling, anomaly detection, de-duplication and mapping recommendations.

In teaching and learning, Deloitte’s Stella tool helps professors ensure students are using AI with actual learning in mind. “They can put their syllabus in, their curriculum in, and it'll come up with ways to integrate generative AI into their curriculum,” Askew said.

That approach encourages students to use AI where appropriate, while still doing their own creative reasoning and critical thinking.

At the same time, Deloitte’s Trustworthy AI Framework helps ensure students can use AI effectively as they enter the workforce. The framework helps schools establish a strong foundation, so students understand the implications of using these tools.

“Students learn how to think creatively, and even more importantly, how to question. Just because you get an answer, doesn't mean it's the right answer,” Askew said — an invaluable skill for an AI-powered workforce.

Across state and local government and higher education, AI’s promise depends on how thoughtfully it is designed, governed and deployed. When organizations focus on real workflows, trusted data and human-centered implementation, AI can help public sector teams reduce complexity, strengthen decision-making and deliver better outcomes for the people they serve.

Learn more about how Deloitte can help your organization make the most of AI.