As artificial intelligence reshapes the public and private sectors, a new report by nonprofit Govern For America reveals how U.S. states are rapidly building internal AI capacity—and the critical role talent plays in driving these efforts.
The “AI x Talent” report, published in April 2025, highlights how at least 32 states have launched AI task forces since the debut of ChatGPT in late 2022, signaling a nationwide shift toward adopting AI within government operations. But while most states focus publicly on regulating external AI use, the report explores how forward-looking state governments are using AI internally to modernize service delivery, improve agency efficiency, and build data science capacity.
Central to this shift is a six-step roadmap recommended by state Chief Information Officers: determining ownership of AI strategy, issuing responsible use guidelines, raising awareness across agencies, sourcing and prioritizing use cases, deploying off-the-shelf tools, and prototyping custom solutions. Though still early in the implementation phase, states like Pennsylvania, Vermont, and Maryland are already seeing benefits—including over 90 minutes saved per day for some public employees using AI tools like ChatGPT Enterprise.
“Most CIOs agree on the importance of someone acting as a Director of AI,” the report notes, urging states to appoint internal AI leads to coordinate efforts. Vermont, a first mover in AI governance, began formalizing its strategy in 2018 and now deploys 10 to 15 new AI tools annually. Maryland has created a Senior Advisor for Responsible AI role and is building out policy and product teams to support that work.
Talent recruitment remains a pressing challenge. While there is an “excess supply” of early-career, tech-minded professionals interested in government roles, states struggle with matchmaking and retention. As the public sector braces for a wave of baby boomer retirements, AI is increasingly seen as a recruitment and retention tool that offers younger professionals meaningful, fast-moving work.
Govern For America recommends that states establish Centers of Excellence within their IT departments to lead AI implementation. These centers could serve as hubs for both innovation and collaboration, especially if paired with philanthropic fellowship programs and cross-state communities of practice.
The report concludes that while not every AI pilot succeeds—failure rates can reach 50%—each project provides essential learning. With structured, well-labeled data, motivated staff, and smart talent strategies, states can turn AI from a buzzword into a force-multiplier for public service.
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