AI workforce readiness: Are state and local agencies prepared?

AI is everywhere—but are state and local governments ready to use it?

We surveyed state and local government leaders about the current AI landscape and what their workforce needs to adopt and implement AI technologies. Here’s what we learned about agencies’ AI workforce readiness.

Want all the data? Watch the on-demand webinar with industry experts as they reveal exclusive insights from the survey on AI adoption, workforce skills gaps, and agency investment priorities.

Looking for information for the federal government? Learn how federal agencies can become workforce ready with AI skills.

To understand the current state of AI adoption for state and local government, we defined five levels of AI maturity:

• Level 1: Agencies aren’t thinking about AI or are just starting AI conversations.
• Level 2: Agencies are exploring potential AI use cases.
• Level 3: Agencies are actively implementing and refining AI technology use.
• Level 4: Agencies have integrated AI into their operations and processes.
• Level 5: Agencies have optimized AI and are fully using its capabilities.

Our research found that the majority of agencies (56%) are at level two. They’re still exploring AI use cases and believe they’re on par with their peers. 

When it comes to the remaining respondents, 28% are at level one, and 16% are at level three. No one is at level four or five yet—and agencies feel this pressure. 47% believe their agency should be at least somewhat further along in their AI adoption journey. 

So, what’s slowing them down? Managing risk, developing the right skills in their workforce, and developing AI policies and standards. 

Takeaway: As AI continues to advance, agencies must strike a balance between AI adoption and risk management. Otherwise they’ll fall behind their peers.

Although agencies feel behind on AI at an organizational level, 85% of respondents say they’re familiar with how their organization is using AI and other emerging technologies. 

Employees at the state and county levels are more likely to be very or somewhat familiar with their organization’s AI use compared to those at the city, town, and special districts level. 

This gives state agencies the opportunity to build AI skills throughout their local governments. By leveraging federal funding programs, like the State and Local Cybersecurity Grant Program (SLCGP), states can provide skill development to their local IT leaders for no cost.

Takeaway: As agencies move out of use case exploration into actual AI implementation, they’ll need to ensure employees continue to understand the technology and how and why they’re using it in their organization. 

Nearly 61% of respondents have used ChatGPT in the past six months, making it the most used AI platform among state and local agencies. Microsoft Copilot (45%) and Google Gemini/Bard (22%) round out the top three.

At the same time, 27% of respondents say they haven’t used any AI platforms. Agencies adopting AI will need to help teams get familiar with AI tools or at least gain basic AI literacy skills. 

Takeaway: The majority of respondents are already using some form of AI to support their job responsibilities. Providing enterprise access to AI platforms can help agencies build basic AI skills throughout their workforce, prevent shadow IT, and reduce cybersecurity risks.

Lack of staff with AI-related skills and knowledge is state and local agencies’ number one barrier to implementing AI technology. And even though 90% of state and local governments say at least 25% of their workforce needs upskilling, 51% don’t plan to provide AI upskilling for non-IT workers.

The reality is that AI impacts everyone. Whether they’re building AI applications or using platforms like ChatGPT, everyone needs AI skills, not just IT teams. For example, deepfakes are one of the greatest risks posed by AI—and anyone can fall victim to them, whether they work directly with AI or not.

So, what type of skill development should agencies invest in? State and local agencies list online courses or certification programs, internal upskilling programs, and in-person training programs or conferences as the most effective ways to build AI knowledge and skills.

Takeaway: To drive outcomes with AI and reduce cybersecurity risks, agencies need to create upskilling programs for IT and non-IT workers. Creating a formal upskilling program that combines online learning platforms with in-person conferences when possible can help teams learn AI skills.

Want an even more comprehensive look at AI use in state and local government agencies? Watch the webinar for all of the insights.

Learn how Pluralsight helps state and local governments upskill their workforce in AI.