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How State Governments Can Harness the Power of Generative AI

December 10, 2024

How State Governments Can Keep Pace with Artificial Intelligence

Generative AI (GenAI) has quickly transitioned from a niche technology to a transformative force across industries, including state government. While GenAI’s implementation in the public sector is still in its early days, its potential to enhance operations and constituent services is undeniable. However, successful adoption requires careful planning and a strategic approach.

Here are three critical considerations for state agencies looking to harness the power of GenAI effectively.

  1. Plan for Costs and Budgetary Needs

Incorporating GenAI into government operations requires thoughtful financial planning. Agencies must understand the costs of integrating GenAI solutions into their existing systems, including licensing fees and any additional infrastructure upgrades.

One key consideration is determining whether the costs will be borne at the state or departmental level. Agencies should also evaluate licensing agreements carefully. For instance, do fees scale based on the number of users, or are they applied universally regardless of actual usage? By accurately identifying user needs and negotiating flexible contracts, agencies can avoid unnecessary expenses.

Given the long-term budget planning requirements in government, anticipating these expenses and avoiding unexpected financial surprises is essential.

  1. Focus on Practical Applications

GenAI’s value lies not in its novelty but in its ability to solve real-world problems. Successful implementation begins with identifying use cases that align with an agency’s mission and deliver measurable benefits.

For example, GenAI can streamline vendor management, simplify legal processes, and optimize procurement workflows. By starting with these tangible applications, agencies can build confidence in the technology and establish a foundation for broader adoption in the future.

The key is to prioritize solutions that address immediate challenges and drive outcomes, rather than implementing technology for its own sake.

  1. Address Relevant Challenges

While the potential of GenAI is vast—enhancing productivity, improving job satisfaction, and enabling innovative services—it’s critical to address its risks and challenges proactively.

Agencies should consider questions like:

  • How do we select the right technology provider?
  • Which capabilities should we enable first?
  • What training will our employees need?
  • How do we evaluate and protect data sources?

By focusing on these essential considerations, state governments can mitigate risks and maximize the benefits of their GenAI solutions.

Preparing for the Future of AI in State Government

The adoption of generative AI in government is still unfolding, but the groundwork laid today will determine its success tomorrow. By anticipating costs, prioritizing practical applications, and addressing potential challenges, state agencies can harness GenAI to improve services and operations for their constituents.

The journey may be complex, but with a strategic approach, state governments can lead the way in leveraging AI to meet the needs of a rapidly evolving digital age.

This approach aligns with Extract Systems’ mission to empower government agencies with technology solutions that drive efficiency and improve outcomes. By incorporating AI-driven tools, agencies can better navigate the challenges and opportunities of the future.


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Meet The Author
Taylor Genter
Taylor is a Marketing Manager at Extract specializing in marketing strategy and planning. With a strong background in data analytics, graphic design, and digital and social media marketing, she brings a comprehensive skill set to her role. She earned her Bachelor of Business Administration degree in Marketing at the University of Wisconsin- Whitewater. Taylor enjoys analyzing people’s behaviors and attitudes to find out what motivates them, and then curating better ways to communicate with them.
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