The case for embedded AI in government
AI is reshaping how work gets done in institutions, both public and private. However, the impact is uneven—consumer AI chat interfaces like ChatGPT, Copilot, Claude, and Gemini are fundamentally mismatched to the realities of government work.
That doesn’t mean government agencies aren’t turning to AI. They cannot hire their way to capacity, so they’re looking to technology to lighten the load. More than half of local governments report difficulty filling positions, a problem especially potent in larger metros. San Francisco’s local government, for example, has more than 4,700 open positions. Since 2020, state government employment has increased, but much of that is a bounce-back from the pandemic, not true growth needed to deliver services with the efficacy governments want.
But drop-in chatbots can’t make a significant impact on operations because data within government agencies—and even within individual departments in agencies—is exceedingly siloed. State and local governments are managing budget constraints. IT teams are stretched thin. It’s no surprise, then, that consumer AI tools don’t meet their promise in government institutions. They fundamentally lack all the information they need to be effective in a public service context.
THE TOOL GAP
Commercial software tools, including AI chatbots, are built for private companies with hierarchies, contracts, and linear processes. Government work is inherently different. Public institutions are cross-organizational, the work is omnidirectional, and success necessitates constant collaboration across agencies, nonprofits, and community partners.
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