Bringing AI and digital transformation in government

As artificial intelligence (AI) becomes central to everyday operations in the public sector, 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 constituent 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,” specialists from Deloitte 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 those eligible applicants and the agency staff that supported them.

For constituents, benefits intake can often feel like an obstacle course. Many eligibility systems continue to 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 and digital transformation in government also offers significant support to the workforce, streamlining administrative processes and saving them time as they carry out integral work. For example, caseworker time is often absorbed by administrative activities such as status check calls, document requests and producing routine case notes. If implemented correctly, AI can help lighten operations and allow those workers to focus directly on serving their constituents.

“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 implementing AI technology, agencies also need to support the cultural transition that comes with AI adoption, starting with a clear focus on augmenting the work of frontline employees. When AI removes repetitive administrative tasks from employees’ plates, workers can spend more time on higher-value interactions with the people they serve and pursuing an organization’s strategic goals. 

To bring that to life, AI experiences need to be designed with frontline staff at the center of the process. “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 focusing on the 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

AI is reshaping the university experience from the inside out, strengthening student engagement, streamlining administration, enriching teaching and learning, and accelerating research. And the transformation goes beyond large language models. Predictive analytics is giving universities the ability to anticipate challenges before they become crises, acting earlier on shifting student and institutional needs.

“Are there things that you can predict that might be relevant to help students be more successful over time?” asks Tamara Askew, principal and national lead for AI in higher education at Deloitte. The answer is increasingly yes, and the stakes are high. Using data to improve student successes, increase retention, and enhance the overall experience isn’t just an operational upgrade. It’s a mission critical capability.

One example: Deloitte’s Candidate360TM, a predictive analytics platform that helps universities optimize enrollment and recruiting through datasets and predictive models, bringing the right guidance at the right time.

Three areas where AI Is making the difference

Askew points to three domains where AI can drive the most meaningful change in higher education: research, teaching & learning and back-office operations.

Research: AI is dramatically compressing the time it takes to generate insights, opening the doors to discoveries that would have taken years. To support that work, Deloitte delivers high-performance compute services that allow institutions to focus less on managing the AI infrastructure and more on the research outcomes it enables.

Teaching and Learning: That same infrastructure powers tools designed to help students chart a more intentional path forward. “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.

Deloitte's Virtual Tutor tool takes this further by helping faculty integrate AI directly into their curriculum. Professors can upload their syllabus and course materials, and the virtual tutor surfaces practical ways to bring generative AI into the learning experience – ways that encourage students to use AI where it adds value while preserving the space for genuine critical thinking and creative reasoning.

Deloitte's Trustworthy AITM Framework complements this by helping institutions build a strong foundation for responsible AI use. Students enter the workforce not just knowing how to use these tools, but knowing how to question them. "Just because you get an answer doesn't mean it's the right answer," says Askew. That instinct to interrogate, not just accept, is one of the most valuable skills anyone can develop in an AI-powered world.

Operations: Many universities operate with complex, fragmented legacy student information systems, a patchwork of platforms that makes it difficult to track data and extract real value. Deloitte's AI-powered data and integration solution addresses this head-on, automating anomaly detection, de-duplication, and system mapping to uncover hidden value and dramatically streamline operations.

The foundation that makes it all work

Across higher education, and the broader public sector, the promise of AI depends on how thoughtfully it is designed, governed, and deployed. When institutions invest in strong workflows, trusted data, and human-centered implementation, AI doesn't just improve efficiency. It also helps teams reduce complexity, sharpen decision-making, and deliver better outcomes for the students and communities they serve.

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