Majority of States Taking Action on AI Guidelines and Policies

A new report by the National Association of State Chief Information Officers (NASCIO) sheds light on how generative artificial intelligence (GenAI) is being utilized in state governments across the U.S. The report reveals that 53 percent of employees within CIO organizations are actively using GenAI tools in their daily work, showcasing its increasing prevalence. Despite some states lagging in areas such as implementing data governance for AI and including GenAI procurement terms in contracts, the majority have taken significant steps to address GenAI. Seventy-eight percent have set up advisory committees, while 72 percent have established enterprise policies for AI usage.

The use of GenAI spans various business processes in state agencies, with applications in virtual meeting assistants, cybersecurity operations, document management, and software code generation among the most common. Leaders like Washington state CIO Bill Kehoe aim to incorporate GenAI in diverse fields, from human resources to policy development. However, obstacles such as reliability, energy consumption rates, trust issues, and cost remain significant barriers hindering widespread adoption.

State CIO responses have led to six key recommendations to enhance state AI utilization: encouraging exploration and setting policies, establishing strong governance frameworks, focusing on data quality, building partnerships, adopting an incremental approach, and promoting transparency. The NASCIO report predicts a substantial increase in GenAI applications over the next three to five years, boosting internal processes and automating routine tasks, indicating a promising future for state-level AI integration.

Moreover, reports show a growing trend among HR leaders in embracing AI solutions to enhance process efficiency. Eighty-one percent have explored or implemented AI solutions to boost organizational success. Companies emphasize reskilling and upskilling efforts to equip workers with skills essential for thriving in the evolving work landscape shaped by AI advancements. With only 12 percent investing in AI applications, there lies untapped potential for enhancing productivity, employee satisfaction, and competitiveness among organizations through skill development initiatives.