NASCIO Voices
NASCIO Voices
GenAI a Year Later: States Make Giant Leaps in Use and Governance
Alex and Amy discuss findings from the 2025 State CIO Survey on how states use and governance of generative artificial intelligence has evolved since the 2024 survey.
Hi, and welcome to Nassio Voices, where we talk all things state IT. I'm Amy Glasscock in Lexington, Kentucky.
SPEAKER_01:And I'm Alex Whitaker in Washington, D.C. The 2025 State CIO survey is out, and we are going to have a few episodes breaking down different parts of it. To kick it all off, Amy and I are going to be chatting about the evolution of generative AI between 2024 and 2025.
SPEAKER_00:That's right. So we first asked state CIOs about generative AI in last year's survey, and you know, by the time we got into the time frame of last winter and we were at meetings talking about the survey, it was already starting to feel like the info was probably out of date. So we were eager to ask state CIOs about it again in this survey.
SPEAKER_01:Yeah, no, I'm glad that we did. It seems like so quickly AI information is out of date. So I'm looking forward to this.
SPEAKER_00:Yeah.
SPEAKER_01:All right. So compared to last year, what stands out most in how states are approaching generative AI?
SPEAKER_00:So, you know, I think last year, 2024, was kind of the year of exploration. States were curious, they were being cautious, and mostly just kind of still experimenting with it, some of the low-hanging fruit ways to use it. But by 2025, nearly every state seems like they are actively engaged in using generative AI through pilots, you know, creating policies or enterprise guidance around it. And the overall tone has kind of shifted from, you know, we're figuring this out to how do we manage and scale this responsibly?
SPEAKER_01:Yeah, absolutely. So what kinds of generative AI use cases are states focusing on most now?
SPEAKER_00:So, you know, early on, um, it was really about the kind of content generation, using it the same way that we all were in our daily lives, summarizing reports, writing emails, you know, creating FAQs, those sorts of things that, you know, simple things that made our jobs easier. But it's really um quickly elevated and expanded. And so we're seeing, you know, movement into operational and data-driven uses, workflow automation, predictive insights, and even uh dipping into citizen services, which we can talk about more later. But and this started happening in 2024 as well, maybe earlier, but AI started showing up inside of enterprise tools that people already had, started being embedded in software that states were already using. And so that continues to be an opportunity and a challenge. And um, you know, it's just kind of less about like standalone AI projects and more about AI becoming part of everyday government work. So, you know, for example, um, we learned in the survey this year that 90% of states are running pilot projects, and we know that they're moving beyond pilots now too. We we had a, I don't think I'm giving any private information away here, but we had a discussion, you know, about generative AI beyond pilots um in our state members only session um at the conference the Sunday before everything got kicked off. And we thought, you know, maybe a couple of states are doing things, but everybody just kept standing up and sharing what they were doing um beyond the pilot phase. So it is maturing quickly.
SPEAKER_01:Yeah, well, I would be remiss if I also didn't quickly throw in that uh NASIO has been working aggressively to make sure that a lot of these programs that states are in and and through their laws and regulations are putting in place or being challenged by some in Congress and in the federal government. So we will continue to uh to to fight against an AI moratorium to protect all this great work. But that's just me having having to toot the NASIO horde.
SPEAKER_00:And if I could just say too, like we we did ask about that in the survey. And do you want these laws to be preempted? And and uh, you know, they definitely didn't. Um states definitely did not want preemption of state authority or moratoriums that would limit states' abilities to regulate AI, and they didn't want overly prescriptive mandates um that could be too rigid or slow moving or disconnected from the reality of the pace of technology. So um definitely you are on the right track there.
SPEAKER_01:Good to hear it. Um okay, so more use um certainly brings in questions of governance. Um and I know that governance or really kind of a lack thereof was a big theme last year. So what's changed on that front?
SPEAKER_00:Yeah, so we definitely saw in 2024 that um a lot of CIOs were saying, yeah, we definitely need governance that's important, but we don't really have it yet. And maybe like a quarter of states had governance around it. But in 2025, that has shifted. Many, if not most, states now have like an AI task force, steering committees, or enterprise frameworks. We know from the most recent survey that 88% said that they have some sort of responsible use, flexible guardrail, security ethics uh governance in place. 84% also are inventorying and documenting use cases and agencies, uh, which is something that you know we've recommended. And 82% have created advisory committees and task forces. So definitely top of mind. You know, privacy, accuracy, bias, those are all still top concerns. But I think as the technology is improving so rapidly, and as states are getting better at procuring it and putting in the appropriate terms and conditions and the contracts, these things are being addressed more.
SPEAKER_01:Yeah. So would you say as a result, are CIOs feeling more confident about using Gen AI?
SPEAKER_00:Yeah, I definitely think so. Um, I think confidence is up and governance is up. There's a recognition that this isn't just some flash in the pan, it's not going away. It's really about managing it safely, not avoiding it. You know, early on we saw some moratoriums for states using any kind of AI. You can you can feel that shift from like, I don't know, this seems risky to wow, this could really be transformative if we do it right. Um, but you know, there's also recognition we heard from state CIOs that they are getting pushback from both government employees and citizens that are not really feeling very trustful of AI or not worried about it. So, you know, of course, as in with many things, they're dealing with the change management aspect of it too. And, you know, we talk a lot about scaling at the speed of trust, and that's something that they have to keep in mind.
SPEAKER_01:Okay, yeah, no, that's really interesting. So, how are COs thinking about the workforce now that AI tools are actually in use?
SPEAKER_00:Yeah. So, you know, 2024, there was like worry about shadow AI tools being used without approval. Um, certainly needed to be worried about that because that was happening. Um, 2025, they're kind of seeing AI more as like a workforce multiplier. How can it help staff be more productive and focus on higher value work? And so um, when we asked this question this year, we asked if employees in the CIO's organization are using Gen AI tools in their daily work, 82% said yes, and that's up from just 53% a year ago, um, which we thought was was bonkers. You know, the number should be way higher. So 82% seems more realistic. 16% said no, down from 29% a year ago. And so, you know, I think this represents a leap in the willingness of the CIO organization to not only allow the use of Gen AI, but also an acknowledgement that the technology is very accessible to anybody that has access to the internet, anybody that wants to use it, sanctioned or otherwise. So um more of a realistic answer this year. And then finally, on workforce trainings, another big um jump this year. 71% of state CIOs reported that they are doing AI training.
SPEAKER_01:Got it. All right, so the big question money. Are states putting real funding behind AI?
SPEAKER_00:Well, it's definitely still a challenge. Um, only 25% reported that they have dedicated funding for Gen AI, but you know, outside of that, I would assume that, you know, because AI is being rolled into this technology that states are already buying, you know, AI is being paid for in other pockets of money and things like that, other technology funds, um, just because it is seemingly an everything these days.
SPEAKER_01:Yeah, I will say that um the new uh state and local cybersecurity grant program legislative vehicle, the Pillar Act, um, it's interesting. A generative AI was written in as an allowable use, which um though I don't think it would have been banned necessarily in the previous iteration, um the the the current authors thought, you know, that that they wouldn't include that. So I think that you're right. Um people are really starting to think about funding questions for this too. Yeah. Um you've you've kind of said a lot of things about how it's different from last year, but what surprised you the most about this year's findings?
SPEAKER_00:You know, I didn't find anything super surprising in the survey. Uh I guess, you know, it's kind of shocking how quickly AI is evolving and the fact that we're already talking about what's beyond generative AI. And I knew that, you know, in those questions that, you know, we ask from year to year, so we can really see exactly how they change. Like I knew that there would be jumps, um, but they were pretty drastic. So that was interesting. You know, and we talked a little bit too, you know, I about the uh moratorium on states regulating AI. Didn't expect that to show up. So that was kind of a surprise, just like from the year.
SPEAKER_01:Yeah. Um, all right. Well, if we had to pull out the Amy crystal ball, and if you could summarize where states are headed next with generative AI, what would you say?
SPEAKER_00:I uh predict that states are gonna be moving away from just using generative AI internally, and they're gonna start using it more externally for citizen services, and that's gonna start with probably chatbots and virtual assistants. Um, and then I think we're gonna start moving into the world of agentic AI and using agents and um perhaps agents for citizen services. So that's my prediction.
SPEAKER_01:Wow. Well, I I'm excited and terrified for the future. So thank you.
SPEAKER_00:Get ready for your your your state services to be easier and faster. So hopefully that's it, yeah.
SPEAKER_01:Yeah. All right. Well, Amy, you know the drill. We can't let anyone, especially you, go without a few questions that we call the lightning round. And I might even answer one of these as well. So are you ready?
SPEAKER_00:Yep.
SPEAKER_01:All right. So, first, what are you gonna be for Halloween?
SPEAKER_00:I'm going to a Halloween party uh with my husband and another couple, and we are going to be the mom, dad, brother, and sister from Shits Creek. So I am Alexis Rose.
SPEAKER_01:Nice. Well, I actually just started watching that with my wife. I've never seen it. So we're yeah, I'm going through it. It's good. Um, all right. Well, I don't have a costume, but um, we we live on a street this year that does Halloween big, so for the first time we've gotten real decorations.
SPEAKER_00:So nice.
SPEAKER_01:All right. So what's your favorite song on Life of a Showgirl?
SPEAKER_00:Um, probably whatever song is running through my head any particular hour of the day.
SPEAKER_01:Okay. Good.
SPEAKER_00:I don't know. I like them all for different reasons and they're just really fun. I like Elizabeth Taylor a lot.
SPEAKER_01:All right, good. Okay, finally. Uh any life hacks for getting through the holiday season?
SPEAKER_00:Um yes, we'll see how this goes, but I have already ordered our holiday cards for the year. Nice. This is something that I feel like uh is a huge drain on my time come December. And, you know, we have some cute pictures from summer travels and and other travels, and so I just was like, went ahead and ordered them. Um, you can get good coupon codes for doing it early. Uh, and then hopefully we'll just get them all ready to send out by like, you know, Thanksgiving. And we have a big renovation going on at my house right now, and I I just can't like do a lot in December.
SPEAKER_01:So yeah, one of the things we did last year for the first time is we uh we ordered the pre-addressed uh envelopes, which is a huge we to my I I I wouldn't say we, my wife wrote uh a lot of the addresses the last two years. I tried to pitch in, so that was a big hack.
SPEAKER_00:That's nice.
SPEAKER_01:Um all right. Well, thank you, Amy. This was great. Um, really appreciate it as always. And stay tuned because I think we're gonna be doing a few more of these.
SPEAKER_00:Yeah, yeah. I think we are gonna invite some other NASIO staff on and hear about some different parts of the state CIO survey so we don't have to talk about it all in one big episode.
SPEAKER_01:Thanks again for listening to NASIO Voices. This podcast is a production of the National Association of State Chief and Professional Officers. Learn more at NATSIO.org.
SPEAKER_00:We'll be back soon with more insights from the State CIO survey. Have a great one.