Government AI: A guide to AI in state and local government services

Author: Rose de Fremery

Date published: August 4, 2025

State and local governments are looking for smart and strategic ways to enhance the services they deliver to their constituents. Deploying AI in government agencies holds significant potential on this promise. While AI has many uses, it is particularly important in respect to delivering productivity and constituent services improvements and completing digital transformation plans.

Here's how AI could soon help governments simplify public transportation, improve healthcare delivery and enable access to better housing and employment.

AI in local government could help ease traffic flow

In 2024, drivers in the United States lost the equivalent of a full work week in traffic. Deploying AI in government services could help to improve traffic flow in cities, making it easier and more efficient for people to get where they need to go.

"For example, we'll be able to collect generic data about the movement of human beings and vehicles in a city to reduce traffic," said Scott Andersen, distinguished solutions architect at Verizon. "I live just outside of Washington, D.C. One of my pet peeves in life is somebody saying to me, 'I need you to be in downtown DC at 4:00 p.m.' Even if the meeting concludes at 4:30 p.m., I don't get home until 7:00 p.m. because traffic is horrible. In the future, we're going to have autonomous systems to reduce that traffic flow."

State and local governments might find this type of technology especially beneficial when it comes to ensuring smooth traffic patterns and improving traffic safety. A well-trained human professional might be able to simultaneously view camera feeds from ten different locations in the downtown area of a city, forming a decent understanding of how traffic is shaping up before the evening commute. In the future, an AI-enabled autonomous control system could view a vast number of camera feeds at once, to help gain a comprehensive, real-time insight into traffic dynamics.

First responders could leverage AI to help them navigate through traffic by using real-time traffic data analysis, predictive route optimization and automated traffic signal controls to help optimize their routes.

AI in healthcare: How using AI in local government could help improve healthcare delivery

Government AI could prove similarly beneficial in improving access to healthcare. "If you go to a VA Hospital, a social worker is assigned to you and that person is responsible for pulling together all of the resources associated with your care," Andersen said. Since that social worker may also be responsible for anywhere from 10 to 20 patients at one time, they may only be able to meet with each patient for 30 minutes. As a result, especially in cases when a patient has complex healthcare needs or the situation requires sensitivity, the social worker may find it difficult to provide the comprehensive care that is required.

Using AI in healthcare could help hospital doctors take better care of their patients by supporting the rapid gathering of the necessary resources for patient care, while also allowing physicians to potentially offer improved guidance and treatment options in a timely manner.

"With a virtual assistant that understood what this person needed and what resources were available, you would be able to improve healthcare delivery. This concept of a personal agent could deliver and build a better solution faster and more easily for both the healthcare system and for the patient," Andersen explained.

Government AI could also benefit housing and employment

Local governments may leverage AI to respond more promptly and effectively to issues affecting tenants in public housing. For example, smart buildings of the future could be equipped with connected thermostats, connected air purification systems and connected water systems.

"Once you get all those systems integrated, you can have an AI system that can regulate the building better," said Andersen. "With an AI system, we can better manage airflow so that the system is more efficient in how it heats and cools the buildings within a housing infrastructure."

These kinds of smart building solutions could also be used to deliver predictive maintenance, solving problems before they even begin affecting tenants. Because many of the systems in a housing complex are interconnected, it's important to understand the potential impact of a repair before it is implemented. AI can help building managers determine these possibilities in advance so that addressing one problem doesn't inadvertently lead to an avalanche of new issues.

AI in government services: Lifelong learning

Employment is also a top concern, particularly given questions about how AI will reshape jobs across a wide variety of sectors. Using AI in government services could be beneficial in this area, too. For example, state and local governments could tap AI to reskill or retrain people so they have access to more employment opportunities in the future.

"The best thing for anybody is always to be a lifelong learner," Andersen explained. "The AI system can help reskill or retrain the person as needed in a private setting." This approach could alleviate the anxiety that might be associated with having to publicly update one's skills and knowledge to be eligible for a new category of jobs. "This allows me to learn in a safer framework, change my skills, learn how to do things differently and be able to have a happier career," he added.

Considerations for a successful government AI implementation

AI in local government solutions requires a large volume of high-quality data for optimal performance. Accordingly, state and local governments must ensure that they are able to connect to all the data required for a particular AI use case.

"I need to build a reliable connection infrastructure to my data," Andersen explained. "That connection infrastructure will determine whether I'll be able to pull all the data I need, and ultimately, it will determine the success of my AI implementation."

State and local government agencies, especially those with strict security requirements, should also keep data security top of mind.

"What is the security of that data? Who's allowed to touch it? Why are they allowed to touch it? Are there rules about moving that data around?" he added. By carefully considering these questions in advance, governments can increase their chances of success with a new AI endeavor.

Government AI can enhance service delivery

State and local governments are under pressure to improve service delivery, and AI—when correctly implemented—can enable advancements in multiple areas, including public transportation, healthcare, housing and employment. A reliable and fast network connection infrastructure is essential to success with any government AI implementation, as it will facilitate essential connectivity to all the data sources required for an AI model to make accurate recommendations. By preparing for the arrival of AI in local government, agencies can position themselves well to serve their communities even more effectively in the future.

Discover how Verizon state and local government solutions can help you better serve your communities and residents.

The author of this content is a paid contributor for Verizon.