A new report from Code for America offers the most detailed snapshot yet of how U.S. state governments are preparing to integrate artificial intelligence into public services. The “Government AI Landscape Assessment,” released in July 2025, evaluates all 50 states across three key categories: Leadership & Governance, AI Capacity Building, and Technical Infrastructure & Capabilities.

The report shows that most states are in the “Developing” stage of AI readiness, with foundational strategies in place but limited formalization or scale. A few states stand out for pioneering efforts: Utah has created an Office of Artificial Intelligence Policy and appointed a Chief Data & AI Officer, while New Jersey trained over 9,000 state employees through a public-private partnership. Colorado, meanwhile, has implemented robust data governance under its AI legislation and built a statewide data inventory.

“Artificial Intelligence is reshaping how public services are designed, delivered, and evaluated,” the report states, while also warning of the risks of poor implementation. The assessment, based on desk research, government reports, and state feedback, provides a baseline for identifying strengths, gaps, and emerging best practices.

Leadership remains the strongest area of progress, with 25 states rated as “Established” and three as “Advanced.” AI Capacity Building lags behind, with most states still developing training and workforce development efforts. Only four states have achieved an “Advanced” rating in capacity building. Infrastructure shows moderate progress, with cloud adoption and data modernization increasing but few states having the compute power or secure platforms needed for sophisticated AI systems.

Looking ahead, the report predicts more federal pressure, education-focused initiatives, and secure sandbox environments for testing AI in government settings. Code for America calls on civic technologists, policymakers, and state agencies to build on this momentum and ensure AI is used responsibly, equitably, and effectively in the public sector.

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