October 17, 2025
Originally posted on LinkedIn
Federal
Federal Agencies Turn to Private Cloud for Better Control and AI Use
Federal agencies are shifting toward hybrid and private cloud models to better balance innovation, security, and mission outcomes. Leaders say this approach gives them more control over data and improves the effectiveness of AI tools in areas like defense, cybersecurity, and public services. This article highlights how agencies are moving from “cloud-first” to “cloud-smart” strategies, using hybrid and private clouds to pair AI innovation with stronger control over mission-critical data. It reflects a maturing federal mindset that treats cloud not as a destination but as an operational model for accountability, security, and agility.
Colorado Lawmakers Push Back on Energy Project Cuts Amid AI Power Demands
State of Colorado lawmakers are criticizing the U.S. Department of Energy (DOE) for canceling over $7 billion in energy project funding, arguing the move undermines efforts to manage rising electricity demand from AI data centers. They say the cancellations threaten jobs, increase utility costs, and hinder progress on affordable energy solutions. This marks a growing tension between scaling AI infrastructure and energy policy: as demand for power-hungry AI data centers grows, the U.S. Department of Energy cancelled billions in clean-energy project funding.
Federal Highway Administration Adopts AI Tool for Infrastructure Planning
The Federal Highway Administration has chosen Aurigo Masterworks, an AI-powered platform, to help modernize how it plans and manages infrastructure projects. This move could influence how other government agencies use AI in public works. This move “signifies a pivotal moment where AI is no longer confined to experimental labs or consumer applications but is actively deployed to enhance the efficiency and resilience of national assets.” We’ll see what comes of that.
State
States Face New Cyber and AI Security Mandates Under Federal Orders
New federal directives are pushing state governments to strengthen their cybersecurity and AI defenses. To stay eligible for funding, states must clarify responsibilities, prioritize critical infrastructure, and integrate AI protections into their broader security plans. State CIOs and CISOs are being urged to treat generative AI systems as critical infrastructure assets: mapping out where AI is embedded, applying the same risk assessments and safeguards used for cyber systems, and integrating AI into enterprise security and grant strategies
State IT Leaders Embrace Fast-Paced Tech Changes, Including AI
A new survey from the National Association of State Chief Information Officers (NASCIO) shows that state IT leaders are rapidly adopting new technologies, including artificial intelligence, to improve government services and operations. State CIOs are embracing emerging technologies like AI while also facing tightening budgets and increased turnover in the role; over half reported budget increases, yet many expect future fiscal pressures.
State Tech Leaders Recognized for Innovation in AI and Public Services
Three state technology leaders received the NASCIO State Technology Innovator Award for their efforts in improving government services through application development, citizen engagement, and the use of AI. Congratulations to: Keith Perry, MBA, Georgia Technology Authority (GTA) Bryanna Pardoe, Commonwealth Office of Digital Experience (CODE PA) Josiah Raiche, Vermont Agency of Digital Services
Texas Adds Boat and Driver’s License Services to Online Assistant
Texas has expanded its digital assistant services to let residents renew boat registrations and upgrade driver’s licenses online, making it easier to access these services without visiting an office. Tackling friction points at the motor vehicle department is typically a public win.
State Tech Leaders Prioritize Accessibility Alongside AI
State technology leaders are making digital accessibility a key focus alongside AI, as they prepare to meet a compliance deadline in April 2025. This shift was highlighted at the NASCIO annual conference. The need to address the human side of AI is more important than ever.
Governor Newsom Blocks Bill to Limit AI Chatbots for Minors
State of California Governor Gavin Newsom rejected a bill that would have limited how minors interact with AI-powered companion chatbots, citing concerns about the bill’s approach. Newsom rejected AB 1064 because it could amount to a near total ban on minors using companion AI chatbots, a good example of how balancing innovation and protection plays out in real time.
Local
Ypsilanti Residents Question National Security Data Center Project
Los Alamos National Laboratory and the University of Michigan plan to build a national security data center in the City of Ypsilanti, but local officials and residents are concerned about the project’s benefits and impact on the community. The Ypsilanti controversy highlights a growing tension in local governance: the national push for AI infrastructure often collides with community concerns about transparency, environmental impact, and equitable development. Public administrators should see this as a case study in how “innovation zones” can fail without local trust and inclusive planning.
City of Kyle Uses AI to Improve Public Services and Engagement
The City of Kyle, TX is using a new form of AI to improve public services and increase community involvement as part of a broader digital transformation effort. This is using agentic AI not just as a flashy tech experiment but as a strategic tool to manage rapid growth, unify silos, and deliver 311 services more efficiently.
Omaha Launches Citywide AI Initiative to Boost Learning and Innovation
The City of Omaha launched ‘OMA x AI’, a citywide initiative to educate residents and city workers about artificial intelligence and explore how it can improve local government services. This is a good example of what happens when local government, academia, and business sectors align around AI for workforce development and civic innovation.
Campbell County Votes Against Rezoning Land for Data Centers
Campbell County, Virginia, has decided not to rezone 57 acres of land that could have been used to attract data centers, keeping existing land protections in place. As seen in City of Memphis, City of Ypsilanti, and now places like Village of Caledonia, City of Tucson, and Jerome Township, there’s a growing tension between the race to expand AI infrastructure and local demands for transparency, environmental protection, and community benefit. These conflicts are becoming a defining test of how public institutions balance innovation with trust.
Hartford Adds AI Translation to Public Meetings for Better Access
The City of Hartford, Connecticut is using AI-powered translation tools at public meetings to help residents who speak different languages participate more easily. The effort is part of a partnership with Google Public Sector to improve access to local government. As a former linguist, this makes my heart sing. It’s a reminder that some of the most meaningful AI applications in government aren’t flashy, they quietly expand who gets to participate and be heard.
International
Europe Pushes AI Use in Industry and Government Amid Setbacks
The European Commission has launched a new strategy to boost the use of AI in major industries and public services, but challenges remain in funding and implementation. It reminds me of all those states and cities that promised to be the “next Silicon Valley for [insert industry here].” Ambition alone isn’t enough; without clear demand, skilled talent, and a supportive policy environment, even the best-funded AI hubs can struggle to take root.
OpenText and Core42 Team Up to Boost UAE’s Public Sector with AI
OpenText is partnering with Core42 to support the United Arab Emirates’ public sector by improving AI, cloud, and automation systems as part of the country’s digital transformation efforts.This kind of public-private collaboration shows how governments can pair global expertise with local infrastructure to accelerate digital transformation on their own terms.
Microsoft to Process AI Data in UAE to Support Compliance
Microsoft will begin processing AI data locally in the UAE starting in 2026 to help government and regulated industries meet data compliance rules. As the UAE strengthens its foothold in a region that is rapidly positioning itself as a digital and regulatory leader, I see this giving Microsoft an advantage over competitors that still rely on offshore or multi-region processing.
ServiceNow and Nvidia Expand AI Infrastructure in the UK
ServiceNow is partnering with NVIDIA to bring advanced AI infrastructure to data centers in the UK, aiming to support local innovation and digital services. This expansion shows how AI transformation depends as much on where data is processed as on the technology itself. Governments want AI capability that fits within national rules and values, not just imported innovation.
Research
Amazon and Carnegie Mellon Team Up on Responsible AI Research
Amazon and Carnegie Mellon University have partnered to create an AI Innovation Hub focused on developing responsible AI solutions and addressing public policy challenges.I think we’re likely to see an academic arms race as universities compete to establish AI innovation hubs of their own. As with past “hub” initiatives, the differentiator tends to be whether the university builds lasting public partnerships rather than chasing corporate alignment alone.
Study Finds AI Systems Miss Much of Human Knowledge
A new study finds that generative AI systems often overlook large parts of human knowledge, especially information outside dominant languages and cultures. Researchers say these systems tend to reinforce common patterns, leaving out less-represented perspectives. As I teach my graduate students at the Fels Institute of Government at the University of Pennsylvania, this is exactly why domain expertise is critical. AI can surface information quickly, but without human context and subject knowledge, it can miss the nuance, judgment, and depth that real understanding requires.
Public Sector
Why Government AI Projects Often Fail — and How to Fix Them
Government agencies are gaining easier access to AI tools, but many pilot projects fail due to unclear goals and poor data. Experts suggest using Process Intelligence to better understand operations before applying AI, helping ensure real improvements and taxpayer value. Is “Process Intelligence” the new Systems Thinking?
Snowflake Offers Tools to Help Public Sector Get AI-Ready
Snowflake is promoting tools to help public sector organizations prepare their data systems for AI use, focusing on open formats and integration with AI services. If your data lakes use closed or proprietary formats, you may struggle to integrate across silos, maintain governance, or scale analytics pipelines for generative-AI tasks. If you don’t know your data, you don’t know AI.
Public Sector AI Leader Honored at Global Data Summit
At the 3rd Annual CDO Magazine Global Data Leadership Summit, a public sector AI leader was recognized for her efforts in advancing data and AI use in government work. A growth mindset isn’t just inspirational this time, it seems to be the framing that data leaders are using to bridge governance, ethics, talent, and AI imperatives at scale.
Report Calls for Improved AI Testing Programs in U.S. Government
A new report argues that the U.S. needs better-designed AI regulatory sandboxes to help government agencies and companies test new technologies safely and effectively. These programs can support innovation while managing risks. Something I learned ealry on from my kids: sometime we all just need more time in the sandbox.
Tensor and Carahsoft Team Up to Offer Predictive AI to Local Governments and Researchers
Tensor and Carahsoft have partnered to provide local governments, research institutions, and businesses with access to predictive AI tools designed to help anticipate outcomes rather than generate new content. The bet here is the frontier in AI for government is shifting from generative to predictive, anticipating risks and operational needs rather than just generating content.
UK Lawmakers Question AI Cost-Saving Claims in Public Services
UK lawmakers are questioning the government’s claims that artificial intelligence will lead to major cost savings in public services like the NHS and local councils. Experts told MPs that the expected savings may be overstated and hard to measure. Good reminder that ambitious savings claims like the £45 billion AI productivity goal by the Department for Science, Innovation and Technology need to be treated as hypotheses, not guarantees. As public leaders, we must keep pushing for transparent assumptions, clear timeframes, and measurable metrics rather than letting big headline numbers stand unchecked.