2026 Tech Trends in State and Local Government
For state and local governments, core technology trends are defining IT strategies in 2026 in these solutions areas: artificial intelligence, cybersecurity, workplace modernization and cloud.
These trends signal a purposeful move from experimentation to operational maturity. Governments are embedding AI into service delivery; rethinking how security and people-centric workflows intersect; and designing hybrid infrastructure that balances compliance, performance and innovation.
This year’s priorities reflect not just technological change but management imperatives shaped by workforce dynamics, public trust, risk and fiscal realities.
Watch: Experts share a valuable perspective on AI deployments.
Artificial Intelligence Takes Center Stage
AI has graduated from pilot programs to enterprisewide operations in state and local government, with agencies embedding AI agents and copilots into core workflows and decision support. AI in 2026 is about outcomes — productivity, automation and confidence — not just hype or experimentation. Peggy Alexander, head of strategy for CDW’s Digital Velocity Office of the CTO, emphasizes that AI is reshaping the operational landscape.
“In 2026, cloud is no longer just infrastructure. It’s really the foundation for AI automation and business agility,” Alexander says, noting that cloud-native foundations enable automation and embedded intelligence across services.
Agencies are balancing innovation with governance, ensuring transparency, traceability and measurable value as AI becomes integral to citizen-facing services and internal processes.
Cybersecurity: AI-Driven Defense and Governance
Cybersecurity strategies in 2026 are centered on automation and resilience as states anticipate renewed federal grant funding and evolving threat landscapes. Aaron McCray, field CISO in CDW’s Global Security Strategy Office, highlights the operational change underway in security operations.
“It’s going to necessitate a shift away from relying on increased head count and moving toward scaling through AI automation,” McCray says about the move toward autonomous defense models.
This trend is not about tool acquisition alone but about building secure, resilient operations that can defend against AI-amplified threats while embedding governance, modern incident response plans and continuous training into the security fabric.
READ MORE: Governments can scale defenses with whole-of-state cybersecurity.
Workplace Modernization: Removing Friction
Workplace modernization in 2026 isn’t simply upgrading devices — it’s redesigning the work itself by removing friction from digital workflows, aligning collaboration tools and enabling hybrid work at scale. Brian Campbell, vice president of digital experience at CDW Government, frames this as enabling employees to work better, not just differently.
“Work isn’t a place,” Campbell says. Changing workforce expectations are pushing a reconsideration of productivity beyond physical offices.
Efficiency by design, supported by AI and unified collaboration, allows agencies to reduce tedious tasks, improve information flow and standardize processes so teams spend more time serving constituents and less toggling between tools.
Cloud: Hybrid and AI-Ready Infrastructure
Cloud strategies in 2026 focus on hybrid environments that balance public cloud agility with data sovereignty, compliance and cost control. Eryn Brodsky, server and storage practice lead at CDW, defines the value proposition for government IT leaders.
“Data is the most valuable commodity that a customer has within their environment,” Brodsky says, articulating why data placement and protection are essential to hybrid cloud planning.
Her perspective underscores how cloud repatriation and deliberate infrastructure design help agencies keep critical data close to home; streamline governance; and lay a secure, scalable foundation for AI deployments.
