To navigate the high stakes of public sector AI, classify initiatives into low, medium, and high risk. Begin with 'low-hanging fruit' like automating internal backend processes that don't directly face the public. This builds momentum and internal trust before tackling high-risk, citizen-facing applications.
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Use a two-axis framework to determine if a human-in-the-loop is needed. If the AI is highly competent and the task is low-stakes (e.g., internal competitor tracking), full autonomy is fine. For high-stakes tasks (e.g., customer emails), human review is essential, even if the AI is good.
Most companies are not Vanguard tech firms. Rather than pursuing speculative, high-failure-rate AI projects, small and medium-sized businesses will see a faster and more reliable ROI by using existing AI tools to automate tedious, routine internal processes.
When creating AI governance, differentiate based on risk. High-risk actions, like uploading sensitive company data into a public model, require rigid, enforceable "policies." Lower-risk, judgment-based areas, like when to disclose AI use in an email, are better suited for flexible "guidelines" that allow for autonomy.
Many leaders mistakenly halt AI adoption while waiting for perfect data governance. This is a strategic error. Organizations should immediately identify and implement the hundreds of high-value generative AI use cases that require no access to proprietary data, creating immediate wins while larger data initiatives continue.
Treating AI risk management as a final step before launch leads to failure and loss of customer trust. Instead, it must be an integrated, continuous process throughout the entire AI development pipeline, from conception to deployment and iteration, to be effective.
When introducing AI automation in government, directly address job security fears. Frame AI not as a replacement, but as a partner that reduces overwhelming workloads and enables better service. Emphasize that adopting these new tools requires reskilling, shifting the focus to workforce evolution, not elimination.
To find valuable AI use cases, start with projects that save time (efficiency gains). Next, focus on improving the quality of existing outputs. Finally, pursue entirely new capabilities that were previously impossible, creating a roadmap from immediate to transformative value.
In sectors like finance or healthcare, bypass initial regulatory hurdles by implementing AI on non-sensitive, public information, such as analyzing a company podcast. This builds momentum and demonstrates value while more complex, high-risk applications are vetted by legal and IT teams.
When developing AI for sensitive industries like government, anticipate that some customers will be skeptical. Design AI features with clear, non-AI alternatives. This allows you to sell to both "AI excited" and "AI skeptical" jurisdictions, ensuring wider market penetration.
To balance security with agility, enterprises should run two AI tracks. Let the CIO's office develop secure, custom models for sensitive data while simultaneously empowering business units like marketing to use approved, low-risk SaaS AI tools to maintain momentum and drive immediate value.
