Walking the AI Tightrope: Finding Balance Between Government Modernization and Public Trust

Key Takeaways

State and local governments are increasingly using AI to enhance public services, with nearly 60% already implementing it.
Public trust in AI usage for government services is declining, with only half of residents feeling comfortable about its application.
Transparency, digital maturity, and a resident-first approach are essential for building trust in AI initiatives.

AI Adoption in Government Services

State and local governments are rapidly adopting artificial intelligence (AI) to enhance service delivery, but many residents feel overwhelmed by the pace of this transition. While public sector leaders prioritize efficiency and user experience, concerns about public trust and comfort with AI are rising. Recent data shows this trust may be more fragile than anticipated.

AI integration in government has gained significant momentum. Recent years have seen agencies modernizing their services, with basic digital options becoming standard. As pressures mount to do more with limited resources, many leaders now view AI as a solution for further modernization. According to NASCIO’s 2025 State CIO Priority list, AI and machine learning rank as the second priority, only behind cybersecurity. A survey by PayIt reveals that almost 60% of governmental agencies utilize AI for various functions, including customer service and automation. Remarkably, only 2% remain without plans for AI deployment.

However, public readiness appears lower than expected. Currently, only 50% of residents report being comfortable with governments employing AI for service delivery, a decrease from 56% last year. Discomfort is particularly pronounced among Gen Z and Gen X, although Millennials and Boomers show consistent comfort levels. This hesitation isn’t due to ignorance; most residents are aware of AI but engage with it infrequently (1-2 times a month).

Concerns regarding security, fairness, accuracy, and transparency dominate resident apprehensions about government AI use. A significant 87% of residents worry about decisions made based on inaccurate data, while 86% are concerned about privacy issues, and 82% express fears of bias. Notably, nearly 80% believe that agencies ought to disclose when AI is used in service delivery.

These findings align with broader trends, as a PEW study from 2025 indicates that more than half of Americans perceive AI as a detriment to personal privacy. Only 17% believe that AI will positively impact society in the coming decades.

This challenging landscape necessitates a strategic response from government agencies eager to innovate. First, transparency must be prioritized. Clear communication about AI usage and safety measures can alleviate public skepticism. Encouragingly, when residents are informed about specific AI applications, comfort levels improve, indicating the importance of highlighting beneficial uses such as reduced wait times.

Secondly, agencies must focus on overall digital maturity. While AI holds transformative potential, many residents still face challenges with basic digital interactions. Rushing to implement complex technologies without first ensuring ease of use could lead to frustration.

Moreover, adopting an incremental, resident-first approach is crucial. Launching small-scale AI initiatives with measurable outcomes and incorporating resident feedback throughout the process can help in building the needed trust.

Although the allure of AI presents a promising future for digital governance, it is essential not to overlook the broader context of modernization. Residents currently perceive government digital services as comparable to private-sector experiences; however, their expectations remain modest. Features like transaction histories or payment reminders—common in the private sector—are still anticipated by only around half of consumers.

In summary, while exploring the possibilities of AI offers tangible benefits, investing in the foundational elements of usability, accessibility, and overall user experience must not be set aside. By prioritizing transparency, usability, and trust, governments can ensure that their modernization efforts serve all residents effectively.

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