On-Demand Panel Discussion: AI in State and Local Government - Strategies for Adoption, Deployment, and Risk Management

At the end of every calendar year, the National Association of State Chief Information Officers (NASCIO) publishes their list of the top 10 state Chief Information Officer (CIO) priorities for the next year. The list for 2024 included artificial intelligence (AI) for the first time ever.

AI’s inclusion in the NASCIO ranking reflects the policies being rolled out by state and local governments across the United States. In 2023, 25 states, along with Puerto Rico and the District of Columbia, introduced AI-related bills. Meanwhile, governors in multiple states including California, Virginia, Wisconsin, Oklahoma, Pennsylvania, and New Jersey have issued executive orders centered around exploring AI. On the local level, municipalities including Seattle, New York City, San Jose, and Santa Cruz County have independently issued policies or guidelines for AI usage by their employees.

And beyond legislation, state and local governments are already utilizing AI - from fighting wildfires in Washington, to solving crimes in Georgia, to managing traffic in New Orleans, and saving caseworkers over 5 years of work hours in Ohio.

Additionally, in an April 2024 publication by NASCIO and McKinsey & Company, “Generative Artificial Intelligence and its Impact on State Government IT Workforces”, which surveyed 49 state CIOs, the first key message is, “now is the time for states to move into the scaling phase to realize the benefits of GenAI.”

However, harnessing the power of AI doesn’t come without risks – many of which have dire consequences for both governments and their constituents. For example, an automated unemployment insurance system in Michigan falsely accused 40,000 people of fraud, resulting in bankruptcy for many of those affected and a class action lawsuit against the state. Improper use of facial recognition software in Louisiana resulted in a false arrest in Georgia, and another lawsuit. New York City’s recently released chat bot was caught telling businesses to break the law. Additionally, 2024 is an election year in the United States and in many other countries around the world, raising fears of AI deepfakes being utilized to sway outcomes.

What approaches can state and local government municipalities take to implement and scale AI tools that both mitigate risks and provide the greatest benefits to their constituents?