GenAI in state and local governments

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It’s hard to think of any technology that has gone from obscurity to implementation faster than generative artificial intelligence (GenAI). Given this rapid pace, state and local governments now find themselves in the unusual position as early adopters.

Historically, governments have always relied on the private sector to blaze the trail ahead, to work out the kinks, discover where the landmines were buried and provide models for optimum deployment efficiency and value. But not in this case, where some agencies are pressing forward despite not having GenAI in their current budget—they didn’t even know what it was when those budgets were made.

Taking on the challenge

Many agencies seeking help from IT to implement GenAI right now are being told to get in line and wait. That means agency and department heads who can’t or don’t want to wait must cover much of the initial GenAI ground themselves.

If you’re an agency leader, we’ve come up with a list of five things we believe you should be thinking about now to get out ahead of the issues and lay the groundwork for successful GenAI adoption.

Start building an AI-ready culture now. With fear and uncertainty surrounding the impact of AI on their jobs, employees could be the biggest impediment to your GenAI ambitions. But there are things you can do to turn them into your biggest allies.

Focus on the right challenges. GenAI can change things. Lots of things. From contracts and budgets to training and security, there are many factors to consider. Are your priorities in order?

Understand what the technology really can and can’t do. There’s lots of hype surrounding GenAI. Misunderstanding its strengths could have you focusing on the wrong applications—and missing out on the ideal uses.

Focus on the use cases, not the technology. The best use of GenAI advances the agency’s mission in some way. From quick wins to more advanced uses, we have a few ideas.

Stay ahead of cost and budgeting issues. Licensing fees can be a quagmire. Matching GenAI functions to use cases to users can be extraordinarily complex. Don’t forget ROI—avoid uses where costs exceed the benefits.

See the details of what you need to know to help you stay ahead of the curve on this rapidly developing technology.

Dive into our thinking:

GenAI in state and local governments

Five things agency leaders need to be preparing for now

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KPMG has worked with federal, state, and local governments for more than a century, so we know how public sector agencies, education institutions, and healthcare organizations work.

We’re experienced, nimble, and flexible. We understand the unique issues, pressures, and challenges government organizations face on the journey to AI adoption.

We offer clarity and insight. As a trusted advisor, we can help you make sense of everything AI, from regulatory mandates to emerging technologies, and help align your efforts with leading practices.

We see the big picture. We can help you adapt to the wide-ranging impacts AI can have on your organization, including financial controls, business processes, and employee growth and retention, and help unlock the value trapped in your data, ethically and responsibly.

We’re not just thought leaders. We’re helping government organizations design and implement real AI use cases today.

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