The report, created using information from interviews with state CIOs and the 2024 State CIO Survey’s section on GenAI, complements other recently released NASCIO resources, such as a resource outlining key considerations for AI use, a report on AI in the workforce, and a report on AI in procurement.
According to NASCIO, the report, Generating Opportunity: The Risks and Rewards of Generative AI in State Government, aims to answer the common CIO question of what other states are doing with GenAI and what role state CIOs are playing.
The majority of employees — 53 percent — within any CIO organization are now using GenAI tools in their daily work, according to the report.
One CIO respondent noted that even though their organization has blocked access to free GenAI tools, they believe employees are finding workarounds.
The consensus among CIOs is that their job is to lead the strategic direction for GenAI, as is typically the case with other technologies. Most of the CIOs interviewed indicated they also believe the CIO should set guidelines and policies for AI use.
While states are at various points of progress in this regard, the majority have taken some form of action. Seventy-eight percent of respondents said their states have created an advisory committee or task force to address GenAI. Nearly three-quarters, or 72 percent, have implemented enterprise policies and procedures for AI development and use. Over half, or 61 percent, have started to document AI applications and use cases in state agencies.
However, there are some areas in which states are lagging. Only 28 percent of respondents have taken action on GenAI procurement terms in contracts, and only 24 percent of respondents have implemented data governance for GenAI.
The most common business processes in which states are using GenAI are virtual meeting assistant transcription, cybersecurity operations, document generation and management, and software code generation.
Some IT leaders, like Washington state CIO Bill Kehoe, want to use GenAI in a wide variety of processes, including human resources, data analytics, customer engagement, and even policy development.
However, respondents noted that reliability, energy consumption rates, trust, cost and lack of understanding still pose significant barriers in adoption. AI training opportunities, such as those launched by states and national organizations, may help to improve adoption rates.
Six key recommendations for state AI use emerged through CIO responses: 1) encourage exploration and set policies; 2) establish strong governance and regulatory frameworks; 3) focus on data quality; 4) build partnerships and foster collaboration; 5) adopt an incremental approach; and 6) be transparent.
NASCIO’s report predicts states will see significant growth in GenAI use in the next three to five years. This will likely include internally focused GenAI uses and GenAI adoption to automate routine processes. Restrictions on the use of GenAI tools are expected to decrease as GenAI becomes more integral to state business.
“I really encourage people to jump in and start exploring,” Fuller said in the report. “I think the employee base is probably doing it anyway.”
