In my years working in government I have gone from a front-row seat as CIO for Clark County, Nevada to my current role helping government leaders implement AI and new technology. All that experience showed me a truth that outsiders often miss: AI alone will not transform the public sector. Leaders driving change with AI will.
They are the ones with the courage and curiosity to see beyond what has always been done and imagine a better way. They are the secret ingredient that turns an AI pilot into a measurable, meaningful change for their communities and constituents.
Yet there’s a stark gap between vision and reality. A recent 2025 survey by EY of nearly 500 senior government executives found that while 64 percent of respondents see the value of AI, only 26 percent have successfully integrated it across their organizations.
The technology exists (and it’s getting more sophisticated), but a strategic approach to people and process that first builds a strong foundation before moving into implementation is absolutely essential. A 2024 report by PwC bears this out: “Successful deployment of GenAI depends as much, or more, on people than the technology itself.”
The Biggest Roadblocks Aren’t What You Think
For a lot of people, the first thing that comes to mind when you say “AI in government” is some sci-fi scenario with robots replacing civil servants. But my experience shows that the real obstacles aren’t the technology itself. They’re the outdated systems and ingrained processes that have been in place for decades.
Many government agencies run on 30-year-old siloed systems. Someone might be paying their property taxes in one system, filing a complaint about a pothole in another, and applying for a business license in a third. These systems don’t talk to each other, so the data is often duplicated, incomplete, or inconsistent. When a leader tries to implement new technology, they’re not just adding a new tool; they’re trying to untangle a complex web of legacy systems that are often hard to “lift and shift.”
Another major challenge is the mindset of “we’ve always done it this way.” Many in public service are mission-oriented—they want to make a positive impact—but bureaucracy can get in the way. It’s a natural inclination to stick with what works, even if it’s not efficient. And for years, the RFP (request for proposal) process has been a prime example of this.
I’ve seen it firsthand: An agency identifies a need, spends a year or more writing and vetting an RFP, only to have the requirements change by the time a vendor is selected and the project is underway. The whole process is so long that it can make transformation feel impossible.
The Necessary Leader
Leaders don’t need to be tech geniuses. The ones who are truly making a difference are those who can navigate the complexities of people and processes effectively – it’s not just about technology.
I’ve identified three key traits that set these leaders apart:
1. Curiosity and Willingness to Fail
The leaders who thrive are those who challenge the status quo. They’re the ones asking, “Is this process efficient? Can we do better?” They create an environment where their teams feel safe to experiment, to try new things, and even to fail. This is crucial because it takes the fear out of innovation. You can’t make progress if everyone is afraid of making a mistake. A good leader knows when a project is low-risk enough to pilot and fail fast without creating a public spectacle. They understand that every setback is a learning opportunity.
2. Trust Building
Hard skills might land you a job, but soft skills will help you advance. A leader’s ability to build trust with their teams, their colleagues, and the public they serve is their most important asset. This means being transparent about new initiatives, especially around things like data privacy.
When you’re rolling out a new system that uses AI, it’s essential to communicate clearly how it will be used. Will residents have the option to opt in? What’s the data retention policy? Being open and honest about these details helps assuage concerns and turns skeptics into allies.
3. Storytelling
You can’t lead a transformation if you can’t articulate why it’s necessary. The best leaders don’t just talk about call volume reduction or application adoption rates, they share the human impact of their work. They explain how a single parent who, thanks to a new AI-powered “digital front door,” can now easily find the social services they need without spending hours navigating a confusing website. Or talk about a small business owner who can get a permit in days instead of months because of a streamlined, automated process driven by AI.
These stories do more than just showcase a new feature; they connect people to the mission. They help employees understand why their day-to-day work is changing and why it’s important for the greater good.
The challenges for local, state, and federal agencies are largely the same. Whether you’re a county manager in Las Vegas or a director at a state DMV, you’re dealing with outdated technology, budget constraints, and a risk-averse culture. But the opportunities are also the same. By focusing on people first, these leaders can use AI as a tool to streamline services, upskill their workforce, and ultimately, build a government that is more efficient, responsive, and trustworthy. States like Wisconsin and California are already seeing these benefits.
The secret to a successful transformation isn’t just about technology, it’s about leadership. And in the public sector, the greatest leaders are the ones who can inspire their teams and their communities to believe in a better future.
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.
Nadia Hansen
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