Agentic AI in an Era of Efficiency

In 2025, SLED government technology is undergoing a significant transformation, focusing on modernization, efficiency and improved service delivery. Emerging and innovative technology is at the forefront of this transformation, with AI leading the charge. AI’s influence on government operations is undeniable; whether it’s public safety, health, or education, AI is shaping government operations across all verticals. Through a wide array of applications such as natural language processing, task automation, image recognition, and smarter policymaking, AI is shifting how state and local governments interact with their constituencies and carry out day-to-day tasks.

Earlier this year, President Trump repealed Biden’s EO on AI and implemented an order directing new AI policies to advance “America’s global AI dominance.” This EO, along with the investment in Stargate, a $500 billion AI infrastructure initiative, are examples of the administrative focus on innovation guided by AI.

As the advancement and adoption of innovative technology such as AI continues, agentic AI may serve as a pillar of technological transformation, affording promising operational and service delivery benefits to state and local governments with minimal human intervention. Its ability to adapt quickly to changing environments and automate a variety of workflows and business processes, ensures state and local government agencies are better equipped to address the ever-evolving needs of their constituencies. The transition from rules-based automation to utilizing contextual data for optimization allows agencies to accomplish a wider array of tasks and improve the overall quality of service delivery and automated interactions.

The 2025 administration has strongly emphasized policies that focus on deregulation, efficiency and innovation. The creation of DOGE, along with potential funding cuts and shifting priorities, could present increased budgetary pressure for states and localities, which may lead to programmatic changes in areas such as public safety, health and education. The adoption and deployment of agentic AI can provide innumerable benefits to agencies and constituencies alike, helping to offset potential budgetary constraints. From an efficiency standpoint, agentic AI has the potential to significantly mitigate costs through routine task automation, reducing processing times for applications and enhancing resource allocation.

Following the federal government’s creation of DOGE, states like Texas, North Dakota and Iowa are establishing their own government efficiency task forces. Iowa, for instance, is focusing efforts on lowering state and local spending and lowering property taxes this year. Agentic AI’s ability to provide a reduction in manual involvement leads to significant operational savings and can help states like Iowa reach their fiscal goals.

Enhancing the Citizen Experience is also still a focal point for state and local government leaders, with emphasis on individualized service delivery. The public benefits from quick response times to inquiries and requests, along with more streamlined interactions. Agentic AI is capable of bolstering data-driven decision-making through the generation of insights around policy development, real-time analysis of community needs and predictive modeling for resource allocation.

When it comes to cybersecurity, the new administration’s focus is on protecting critical infrastructure, safeguarding American intellectual property and adopting innovative AI solutions to enhance cyber resilience. There is also a continuance of the “Whole of State” approach to security, involving intergovernmental collaboration and cohesion.

With an increasingly complex threat landscape in which malicious actors are only becoming more sophisticated, agentic AI can play a key role in bolstering the nation’s cybersecurity posture. Its ability to quickly adapt to new environments and changing landscapes, assess potential threats independently, automate responses and provide real-time data-driven insights, makes it the perfect co-companion to modern cybersecurity tools and solutions such as Zero Trust.

Agentic AI can also enhance other vertical-specific operations such as public health monitoring and urban planning. Local governments experienced more severe recovery impacts after the Covid-19 Pandemic, and agentic AI is an example of a technological solution that can help spur economic vitality.

The adoption and implementation of agentic AI will demand a robust governance framework that addresses criticalities such as data privacy and security. IT companies in this space should stay mindful of emerging compliance and regulatory challenges, and partner with end users to ensure mitigation of potential ethical concerns. The adoption of agentic AI will also require a data foundation that is built on sound governance with emphasis on data quality and management. IT companies can expect to see more demand for solutions that complement these efforts, such as secure system architecture.

Furthermore, with efforts to restore the public’s trust in government, we can expect to see requirements around impact assessments and accountability standards. The advancement of any new technology also spurs demand for change management, change-management-as-a-service, for example. The successful adoption of any new technology should be complemented by individuals who know how to use it properly.

The evolution of agentic AI in state and local governments can help agencies achieve success throughout their digital transformation journeys. Ensuring its success will require an all-hands-on-deck approach that focuses on security, data privacy, accountability and proper governance. The 2025 administration has stressed the importance of innovation through efficiency, with emphasis on reducing unnecessary spend. Agentic AI can serve as the foundation of efficiency, streamlined service delivery, accountability and adaptability, while minimizing human involvement and generating cost savings.

In 2025, AI is here to stay. Change is inevitable, but new circumstances often breed innovation. With the help and guidance from technology partners, agentic AI can become the cornerstone of modernization for years to come.

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About the Author: Yvonne Maffia is the senior analyst covering state, local and education markets. She applies insights and analysis to purchasing trends to help vendors and partners shorten their sales cycles. Prior to joining TD SYNNEX Public Sector, Yvonne spent 8 years working in state and local government, where she oversaw advisory boards across the State of Florida and served as an analyst to a local politician. Yvonne currently lives in Washington, DC.