5. AI Policies, Guidelines and Enforcement
Over 700 local governments and thousands of schools and universities continue to develop policies that provide rules and guidance on the appropriate use of AI. Instead of relying heavily on guardrails, state and local governments are beginning to see the need for guide rails. Guide rails are more proactive and are used to steer or guide the behavior of AI systems toward desired outcomes. Guide rails provide recommendations to AI systems to help them make better decisions or reach specific goals. Unlike guardrails, which primarily focus on preventing undesirable outcomes, guide rails focus on actively shaping the behavior of AI systems to optimize performance or achieve desired objectives.
Missing in most policies and guidelines are penalties for when someone violates AI policies, intentionally or unintentionally. This year, there will be a focus on enforcement.
Action: Develop, promulgate and enforce
6. Cyber AI for Better Security
Cyber AI in local government involves using AI to enhance cybersecurity measures, improve decision-making and streamline operations. It helps detect and respond to cyberthreats in real time, manages data securely and protects sensitive citizen information. Cyber AI can also automate tasks such as network monitoring, identifying vulnerabilities and providing predictive insights to prevent attacks. By leveraging AI, local governments can improve the efficiency and resilience of their digital infrastructure while maintaining public trust.
Action: Embrace
7. The AI Divide
The AI divide refers to the gap between individuals, communities, organizations or nations in their access to, adoption of and benefit from AI technologies. This divide can arise due to differences in resource, infrastructure, education and technical expertise. It mirrors other digital divides, potentially exacerbating existing social and economic inequalities by giving those with greater access to AI tools a significant advantage in innovation, productivity and decision-making while leaving others behind. Addressing the AI divide is crucial for equitable technological advancement.
Action: Recognize and act
8. A Return to On-Premises
For years, cloud computing was primarily promoted to replace on-premises networks and storage. It turns out that much broadband connectivity has yet to keep up with the growing need for speed. Even with data pushed to the edge, many local governments are reconsidering their cloud strategies to improve reliability and quicker response rates. The cost of on-premises also has come down dramatically, it requires less space, and it has become far more economical to maintain and operate. As the cost of storage continues to increase, moving back to on-premises may be more cost-effective. Ultimately, we expect growth in hybrid configurations.
Action: Revisit and consider
DIVE DEEPER: Modular data centers offer options for state and local agencies.
9. Digital Identity and AI
Governments are introducing digital identification methods to simplify access to public services. For instance, the U.K. plans to allow citizens to use smartphones to verify their age when purchasing alcohol, aiming to modernize and secure identity verification processes. Examples include digital wallets. Digital AI will be able to search numerous databases instead of just verifying one's identity.
Action: Embrace
10. The Rising Cost of Tech
Once promoted as saving money overall, technology now costs more. Technology managers can struggle to keep up due to shorter product lifecycles, the need for updates and maintenance, and the cost of individual licenses. Rising costs will cause tech rationing and tech downsizing.
Action: Recognize and plan ahead
11. Tech Talent Challenges
The challenge of attracting and retaining tech talent will continue throughout 2025 as local governments struggle to maintain current market conditions that favor the private sector and larger government entities. Expect to see more local governments turn to managed service providers and reach out to recent retirees who may be willing to work under more limited and flexible working conditions.
Action: Recognize and innovate
12. Vendor Consolidation: Fewer Choices
Consolidation has ravaged the vendor community, leaving local governments with fewer choices and slimmer service offerings. To counter this worrisome trend, expect local governments to band together for group purchasing and shared services. Such unification provides a stronger cohesive front and a unified voice when advocating for better service solutions.
Action: Organize a collective voice
UP NEXT: How Can You Prepare Your Cloud to Safely Implement AI?
