Cloud and AI Are Powerful Productivity Drivers in the Public Sector

Funding at the state and local level is famously complex. Some jurisdictions allocate an IT budget over a certain period rather than following a predictable monthly or annual budget. In those cases, capital expenditures might be favored over an operating expenditure model.

Today, the OPEX model for IT has largely been embraced in favor of CAPEX in the private sector, and in many parts of the public sector as well, especially at the state level.

Nevertheless, many jurisdictions cling to the idea that, to get the most out of yesterday’s CAPEX investments, they should ride out their legacy infrastructure investments to avoid sunk costs. The impulse is understandable: When you buy anything expensive, you expect to get a good, long life out of it.

But legacy, on-premises systems are more prone to security issues, and technology evolves quickly. Maintenance and upkeep are more challenging, and it can be hard to find replacement parts and the support needed to use them. Some jurisdictions end up sinking even more money into older systems as a result, and they become a burdensome operating expense in and of themselves.

The key to breaking this cycle is considering the opportunities cloud provides as a productivity driver, especially as it pertains to artificial intelligence enabled through cloud services. Focus on future productivity returns rather than past investments.

Click the banner for survey data about how organizations are moving ahead with cloud.

Cloud and AI Improve Productivity, Collaboration and Outreach

Cloud services, particularly with AI integration, provide pathways to rapid innovation. For instance, paired with cloud-based voice capabilities, AI can be easily toggled on to provide meeting transcription, summarization and note-taking, and it can identify action items in real time. With automatic compliance redaction, AI can even automatically redact sensitive information such as Payment Card Industry Data Security Standard data, protected health information and personally identifiable information from audio recordings and transcriptions of every call, masking information from unauthorized access. This allows participants to focus on conversations rather than on documentation and compliance.

Tools such as Microsoft Copilot can also work across GovRAMP (formerly StateRAMP) and FedRAMP-approved product suites such as Microsoft 365 to help with day-to-day functions. Enabling AI productivity drivers is more complicated in legacy, on-premises environments.

In terms of larger-scale deployments, AI applications such as chatbots are transforming interactions with the public. Intelligent assistants can engage users, answer questions and provide detailed information on a wide range of topics. For instance, Orange County, N.Y.’s website lets users conversationally query a chatbot and receive answers to their questions. It can respond to questions including where to vote, what parks are in the area, how to dispose of certain refuse and more.

RELATED: Experts provide guidance on how to prep IT infrastructure for AI.

There will always be a need for on-premises infrastructure, especially for secure use cases. What’s more, the launch of AI PCs with neural processing units is bringing AI to the edge. But most states use hybrid cloud environments, according to research from the National Association of State Chief Information Officers, and state CIOs listed the average target for cloud adoption at 71% of the total system catalog.

Even public safety stands to gain from cloud infrastructure. Mass notification systems, remote monitoring of public infrastructure and public health initiatives such as disease surveillance are all examples of how the cloud can help.

At the end of the day, the cloud can reduce silos and enable a more pervasive IT infrastructure that is better connected, more reliable and better equipped to deploy cutting-edge technologies including everything from cloud contact centers to solutions supported by large language models.

Turning Cloud’s Opportunities Into Reality

All of this is more easily said than done, and the cloud certainly requires optimization to get the most out of it. But it provides a velocity that legacy infrastructure can’t match, especially when you start exploring AI as a driver for productivity, collaboration, remote work and innovation.

Smaller communities with limited IT staff are especially poised to benefit from the transition to cloud. Many are put in the position of trying to make the most of their existing IT workforce. But in their effort to be jacks of all trades, they risk becoming masters of none. Moving toward a managed services model can help staff save time to drill down into projects they otherwise wouldn’t have time for.

A final consideration here is workforce turnover. Legacy systems often require legacy knowledge, and when that knowledge leaves the building, it can be scary — or it can be an opportunity. More specifically, it can be a chance to re-examine your IT infrastructure from a different perspective and modernize what you have.

Technology moves fast, and the most important thing right now is positioning yourself to keep up with it. Looking at legacy systems and evaluating where cloud alternatives can act as force multipliers for productivity and innovation is a great place to start.

This article is part of StateTech’s CITizen blog series.