AI, Government and the Future

AI Is Revamping Government Systems

Author

Corner Alliance
February 27, 2025

Welcome to our weekly dive into the exciting world of Artificial Intelligence (AI) and its impact on the U.S. Government!

AI is progressing at an incredible pace, and we're just scratching the surface. With so much information out there, it can be overwhelming to keep up.

We're here to provide you with insightful analysis and a concise summary, delivered to you on a regular basis. Stay informed, stay up-to-date, and join us on this thrilling journey into the future of AI.

Episode 45 Recap: Giorgos Verdi on Europe Shaping Global AI Standards 

Giorgos Verdi, a distinguished policy fellow at the European Council on Foreign Relations joins this episode of AI, Government, and the Future, to discuss the European Union’s (EU) pioneering AI Act, its impact on innovation, and Europe's role in shaping global AI standards. Giorgos offers insights into the challenges and opportunities for European tech companies, the geopolitical forces driving AI development, and AI’s potential to transform government services.

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Spotlight

Local Governments Weigh Need for AI Leadership as State and Federal Counterparts Move Forward

Local governments are increasingly appointing dedicated staff to lead AI governance and strategy, mirroring trends at federal and state levels. While larger municipalities, like Luzerne County, PA, and Gilbert, AZ, have created "Chief AI Officer" roles, smaller cities often assign AI responsibilities to existing roles like Chief Technology Officers (CTOs), Chief Information Officers (CIOs), or Chief Data Officers (CDOs) due to resource constraints. Christopher Jordan of the National League of Cities emphasizes that these AI leads are crucial for enhancing AI readiness, closing capability gaps, and aligning organizational priorities. They oversee data governance, privacy measures, and policy development. Without such leadership, local governments struggle with AI readiness and literacy. While the past year focused on policy implementation and readiness, Jordan expects increased experimentation with AI applications, such as language translation, across more municipalities in the coming year.

The Number 

$47.6 Billion 

The global Agentic AI Government market is projected to reach $47.6 billion by 2034, growing at a 41.7% Compound Annual Growth Rate (CAGR). North America leads with a 40.9% market share and $0.6 billion in revenue for 2024. Growth is driven by workforce automation needs, with Ready-to-Deploy Agents and Healthcare Management leading the sector. On-premises deployment remains the preferred model. The U.S. market, valued at $513.5 million in 2024, is expanding at 40.7% CAGR. 

In-Depth 

California Launches New Digital Democracy Tool

California Governor Gavin Newsom has launched Engaged California, a digital democracy platform that connects residents directly with government officials. Initially focused on aiding wildfire victims in Pacific Palisades and Altadena, the web-based initiative requires only an email address to join. The platform uses AI to analyze public comments and prioritize government responses on issues like insurance coverage and infrastructure improvements. Modeled after a successful Taiwanese program used during COVID-19, this $115,000 public-private partnership includes academic and nonprofit organizations. The initiative aims to improve accessibility over traditional government engagement methods while protecting user privacy. Newsom, who has deep ties to Silicon Valley and authored a book on digital government, continues to balance California's technological innovation with protections against potential technology harms.

Read More - govtech

Minnesota Releases AI Pilot Project to Combat Fraud

Minnesota Governor Tim Walz has signed an executive order to combat assistance program fraud by establishing a new Fraud and Financial Crimes Unit. The unit merges criminal anti-fraud divisions from the Department of Commerce and Bureau of Criminal Apprehension to enhance coordination. The initiative includes an upcoming AI experimental project and aims to improve resource-sharing among investigators to better address the rise in digital crimes since COVID-19.