Every public-sector leader is wrestling with the same question: How do we harness the power of AI without losing control of it? The answer is still a work in progress. In Seguin, Texas, we have nearly 600 employees spanning 25 departments that rely on some combination of the 250-plus applications in our tech stack. Many of these apps now have AI quietly embedded within them.
The public sector urgently needs to empower its workforce to use AI safely. According to a recent report, 91 percent of public-sector and local government IT leaders acknowledge that the use of AI tools and agents outside of official oversight creates business and mission risk. At the same time, factors like budget restrictions, aging infrastructure and unclear governance frameworks make safe AI adoption easier said than done.
Thankfully, we can lean on each other to figure it out. Peer cities can openly share what’s working and what’s not when it comes to AI to learn from one another. This capacity for collaboration will be one of the public sector’s biggest advantages as it navigates the hurdles of using AI safely.
AI IS INEVITABLE; SAFE ADOPTION IS NOT
It’s no secret that government IT budgets are tight. In many instances, the lion’s share of that money (up to 80 percent) goes toward maintaining legacy systems instead of adopting new technologies. County and municipal IT leaders know AI governance is crucial, but they have limited resources at their disposal.
There’s also the challenge of shadow AI. The aforementioned report found that most public-sector IT leaders (96 percent) have encountered AI applications or agents being implemented by employees in non-IT functions. When employees use non-sanctioned AI tools or agents, sensitive government or citizen data can inadvertently leave an organization’s controlled environment. Furthermore, nearly every app employees use today, even everyday software, features some level of AI functionality. The problem is, these capabilities are often “turned on” or utilized without official approval, training or oversight.
Despite these challenges, AI is here to stay as a core layer of the public sector’s technology stack. It’s increasingly playing a crucial role in keeping essential services up and running, from utility billing to permitting to public safety. Organizations that fail to enable responsible AI use risk falling short in delivering the essential services their communities depend on.
Here are three ways public-sector leaders can support safer AI:
1. Keep your finger on the pulse
It’s vital to constantly know what’s actually happening across the organization as it pertains to AI. This goes beyond the items on your official technology road map. Leaders need to know which departments are experimenting with AI, what data those tools are touching, and how elected officials, city managers and residents perceive the risk.
Having a pulse on the organization also means prioritizing security and governance. The hard part is, you don’t want to implement so many guardrails that it stifles the creativity that makes public employees want to use these tools in the first place. Finally, staying dialed in also means talking to peers regularly. Your network can often tip you off to emerging risks or new best practices faster than any formal report can.
A great example of this is Seguin’s communications team. They have leveraged AI extensively to help raise the profile of our beautiful city online by creating relevant and fun content, and each clip produced has a direct impact on the citizens we serve. From educating folks on garbage day changes to pointing them to our award-winning GIS program, the services we provide and how to engage with the city, AI is a tool we should all keep in our arsenal to help engage with those we serve.
2. Invest in the right tools
The public sector needs infrastructure built to manage AI, not restrict it. The goal should never be to lock employees into a single approved AI tool, for example. Those types of blanket mandates can stifle creativity and can lead to more shadow AI. Instead, leaders should seek out platforms that give IT the ability to monitor and govern AI without shutting down experimentation.
When evaluating vendors, look for tools with built-in guardrails, strong governance and compliance capabilities, and a good track record with organizations similar to yours. In many cases, reputation and relationships can matter almost as much as the technology itself.
3. Educate (and empower) your workforce
Education is an essential piece of the puzzle. Every employee needs AI literacy training to understand what data can safely be shared with AI tools, which tools are sanctioned, and the “why” behind those boundaries. In fact, Texas recently mandated state and local government employees complete an annual AI awareness training course. This is exactly the type of proactive investment public-sector organizations should be making in AI education. With the right knowledge, AI will empower your workforce in remarkable ways; without it, shadow AI proliferates.
THE FUTURE OF PUBLIC-SECTOR AI
AI is already transforming how cities and counties deliver services, keep residents safe and optimize limited budgets. While governance and shadow AI are still very real challenges, public-sector organizations have a key advantage the private industry doesn’t: a culture of sharing what works. By keeping a pulse on what’s happening in your organization (and what’s working for others), adopting the right technology and educating your workforce, public-sector leaders can move past AI uncertainty so communities can start reaping the benefits.
Shane McDaniel is CIO of Seguin, Texas.
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