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. 

Episode Transcript

SPEAKER_00 (00:05):
Hi, and welcome to Nassio Voices, where we talk all
things state IT.
I'm Amy Glasscock in Lexington,Kentucky.

SPEAKER_01 (00:11):
And I'm Alex Whitaker in Washington, D.C.
The 2025 State CIO survey isout, and we are going to have a
few episodes breaking downdifferent parts of it.
To kick it all off, Amy and Iare going to be chatting about
the evolution of generative AIbetween 2024 and 2025.

SPEAKER_00 (00:26):
That's right.
So we first asked state CIOsabout generative AI in last
year's survey, and you know, bythe time we got into the time
frame of last winter and we wereat meetings talking about the
survey, it was already startingto feel like the info was
probably out of date.
So we were eager to ask stateCIOs about it again in this
survey.

SPEAKER_01 (00:44):
Yeah, no, I'm glad that we did.
It seems like so quickly AIinformation is out of date.
So I'm looking forward to this.

SPEAKER_00 (00:49):
Yeah.

SPEAKER_01 (00:50):
All right.
So compared to last year, whatstands out most in how states
are approaching generative AI?

SPEAKER_00 (00:57):
So, you know, I think last year, 2024, was kind
of the year of exploration.
States were curious, they werebeing cautious, and mostly just
kind of still experimenting withit, some of the low-hanging
fruit ways to use it.
But by 2025, nearly every stateseems like they are actively
engaged in using generative AIthrough pilots, you know,

(01:19):
creating policies or enterpriseguidance around it.
And the overall tone has kind ofshifted from, you know, we're
figuring this out to how do wemanage and scale this
responsibly?

SPEAKER_01 (01:29):
Yeah, absolutely.
So what kinds of generative AIuse cases are states focusing on
most now?

SPEAKER_00 (01:35):
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 madeour jobs easier.
But it's really um quicklyelevated and expanded.

(01:57):
And so we're seeing, you know,movement into operational and
data-driven uses, workflowautomation, predictive insights,
and even uh dipping into citizenservices, which we can talk
about more later.
But and this started happeningin 2024 as well, maybe earlier,
but AI started showing up insideof enterprise tools that people
already had, started beingembedded in software that states

(02:20):
were already using.
And so that continues to be anopportunity and a challenge.
And um, you know, it's just kindof less about like standalone AI
projects and more about AIbecoming part of everyday
government work.
So, you know, for example, um,we learned in the survey this
year that 90% of states arerunning pilot projects, and we

(02:40):
know that they're moving beyondpilots now too.
We we had a, I don't think I'mgiving any private information
away here, but we had adiscussion, you know, about
generative AI beyond pilots umin our state members only
session um at the conference theSunday before everything got
kicked off.
And we thought, you know, maybea couple of states are doing
things, but everybody just keptstanding up and sharing what

(03:01):
they were doing um beyond thepilot phase.
So it is maturing quickly.

SPEAKER_01 (03:06):
Yeah, well, I would be remiss if I also didn't
quickly throw in that uh NASIOhas been working aggressively to
make sure that a lot of theseprograms that states are in and
and through their laws andregulations are putting in place
or being challenged by some inCongress and in the federal
government.
So we will continue to uh to tofight against an AI moratorium
to protect all this great work.
But that's just me having havingto toot the NASIO horde.

SPEAKER_00 (03:30):
And if I could just say too, like we we did ask
about that in the survey.
And do you want these laws to bepreempted?
And and uh, you know, theydefinitely didn't.
Um states definitely did notwant preemption of state
authority or moratoriums thatwould limit states' abilities to
regulate AI, and they didn'twant overly prescriptive
mandates um that could be toorigid or slow moving or

(03:51):
disconnected from the reality ofthe pace of technology.
So um definitely you are on theright track there.

SPEAKER_01 (03:59):
Good to hear it.
Um okay, so more use umcertainly brings in questions of
governance.
Um and I know that governance orreally kind of a lack thereof
was a big theme last year.
So what's changed on that front?

SPEAKER_00 (04:09):
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'treally have it yet.
And maybe like a quarter ofstates had governance around it.
But in 2025, that has shifted.
Many, if not most, states nowhave like an AI task force,
steering committees, orenterprise frameworks.
We know from the most recentsurvey that 88% said that they

(04:32):
have some sort of responsibleuse, flexible guardrail,
security ethics uh governance inplace.
84% also are inventorying anddocumenting use cases and
agencies, uh, which is somethingthat you know we've recommended.
And 82% have created advisorycommittees and task forces.
So definitely top of mind.
You know, privacy, accuracy,bias, those are all still top

(04:57):
concerns.
But I think as the technology isimproving so rapidly, and as
states are getting better atprocuring it and putting in the
appropriate terms and conditionsand the contracts, these things
are being addressed more.

SPEAKER_01 (05:12):
Yeah.
So would you say as a result,are CIOs feeling more confident
about using Gen AI?

SPEAKER_00 (05:17):
Yeah, I definitely think so.
Um, I think confidence is up andgovernance is up.
There's a recognition that thisisn't just some flash in the
pan, it's not going away.
It's really about managing itsafely, not avoiding it.
You know, early on we saw somemoratoriums for states using any
kind of AI.
You can you can feel that shiftfrom like, I don't know, this

(05:37):
seems risky to wow, this couldreally be transformative if we
do it right.
Um, but you know, there's alsorecognition we heard from state
CIOs that they are gettingpushback from both government
employees and citizens that arenot really feeling very trustful
of AI or not worried about it.
So, you know, of course, as inwith many things, they're
dealing with the changemanagement aspect of it too.

(05:59):
And, you know, we talk a lotabout scaling at the speed of
trust, and that's something thatthey have to keep in mind.

SPEAKER_01 (06:04):
Okay, yeah, no, that's really interesting.
So, how are COs thinking aboutthe workforce now that AI tools
are actually in use?

SPEAKER_00 (06:10):
Yeah.
So, you know, 2024, there waslike worry about shadow AI tools
being used without approval.
Um, certainly needed to beworried about that because that
was happening.
Um, 2025, they're kind of seeingAI more as like a workforce
multiplier.
How can it help staff be moreproductive and focus on higher
value work?
And so um, when we asked thisquestion this year, we asked if

(06:34):
employees in the CIO'sorganization are using Gen AI
tools in their daily work, 82%said yes, and that's up from
just 53% a year ago, um, whichwe thought was was bonkers.
You know, the number should beway higher.
So 82% seems more realistic.
16% said no, down from 29% ayear ago.

(06:55):
And so, you know, I think thisrepresents a leap in the
willingness of the CIOorganization to not only allow
the use of Gen AI, but also anacknowledgement that the
technology is very accessible toanybody that has access to the
internet, anybody that wants touse it, sanctioned or otherwise.
So um more of a realistic answerthis year.
And then finally, on workforcetrainings, another big um jump

(07:20):
this year.
71% of state CIOs reported thatthey are doing AI training.

SPEAKER_01 (07:25):
Got it.
All right, so the big questionmoney.
Are states putting real fundingbehind AI?

SPEAKER_00 (07:31):
Well, it's definitely still a challenge.
Um, only 25% reported that theyhave dedicated funding for Gen
AI, but you know, outside ofthat, I would assume that, you
know, because AI is being rolledinto this technology that states
are already buying, you know, AIis being paid for in other
pockets of money and things likethat, other technology funds,

(07:53):
um, just because it is seeminglyan everything these days.

SPEAKER_01 (07:57):
Yeah, I will say that um the new uh state and
local cybersecurity grantprogram legislative vehicle, the
Pillar Act, um, it'sinteresting.
A generative AI was written inas an allowable use, which um
though I don't think it wouldhave been banned necessarily in
the previous iteration, um thethe the current authors thought,
you know, that that theywouldn't include that.
So I think that you're right.
Um people are really starting tothink about funding questions

(08:17):
for this too.
Yeah.
Um you've you've kind of said alot of things about how it's
different from last year, butwhat surprised you the most
about this year's findings?

SPEAKER_00 (08:25):
You know, I didn't find anything super surprising
in the survey.
Uh I guess, you know, it's kindof shocking how quickly AI is
evolving and the fact that we'realready talking about what's
beyond generative AI.
And I knew that, you know, inthose questions that, you know,
we ask from year to year, so wecan really see exactly how they
change.
Like I knew that there would bejumps, um, but they were pretty

(08:48):
drastic.
So that was interesting.
You know, and we talked a littlebit too, you know, I about the
uh moratorium on statesregulating AI.
Didn't expect that to show up.
So that was kind of a surprise,just like from the year.

SPEAKER_01 (09:01):
Yeah.
Um, all right.
Well, if we had to pull out theAmy crystal ball, and if you
could summarize where states areheaded next with generative AI,
what would you say?

SPEAKER_00 (09:11):
I uh predict that states are gonna be moving away
from just using generative AIinternally, and they're gonna
start using it more externallyfor citizen services, and that's
gonna start with probablychatbots and virtual assistants.
Um, and then I think we're gonnastart moving into the world of
agentic AI and using agents andum perhaps agents for citizen

(09:32):
services.
So that's my prediction.

SPEAKER_01 (09:34):
Wow.
Well, I I'm excited andterrified for the future.
So thank you.

SPEAKER_00 (09:38):
Get ready for your your your state services to be
easier and faster.
So hopefully that's it, yeah.

SPEAKER_01 (09:45):
Yeah.
All right.
Well, Amy, you know the drill.
We can't let anyone, especiallyyou, go without a few questions
that we call the lightninground.
And I might even answer one ofthese as well.
So are you ready?

SPEAKER_00 (09:57):
Yep.

SPEAKER_01 (09:58):
All right.
So, first, what are you gonna befor Halloween?

SPEAKER_00 (10:01):
I'm going to a Halloween party uh with my
husband and another couple, andwe are going to be the mom, dad,
brother, and sister from ShitsCreek.
So I am Alexis Rose.

SPEAKER_01 (10:10):
Nice.
Well, I actually just startedwatching that with my wife.
I've never seen it.
So we're yeah, I'm going throughit.
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 Halloweenbig, so for the first time we've
gotten real decorations.

SPEAKER_00 (10:24):
So nice.

SPEAKER_01 (10:25):
All right.
So what's your favorite song onLife of a Showgirl?

SPEAKER_00 (10:28):
Um, probably whatever song is running through
my head any particular hour ofthe day.

SPEAKER_01 (10:33):
Okay.
Good.

SPEAKER_00 (10:34):
I don't know.
I like them all for differentreasons and they're just really
fun.
I like Elizabeth Taylor a lot.

SPEAKER_01 (10:40):
All right, good.
Okay, finally.
Uh any life hacks for gettingthrough the holiday season?

SPEAKER_00 (10:45):
Um yes, we'll see how this goes, but I have
already ordered our holidaycards for the year.
Nice.
This is something that I feellike uh is a huge drain on my
time come December.
And, you know, we have some cutepictures from summer travels and
and other travels, and so I justwas like, went ahead and ordered

(11:07):
them.
Um, you can get good couponcodes for doing it early.
Uh, and then hopefully we'lljust get them all ready to send
out by like, you know,Thanksgiving.
And we have a big renovationgoing on at my house right now,
and I I just can't like do a lotin December.

SPEAKER_01 (11:22):
So yeah, one of the things we did last year for the
first time is we uh we orderedthe pre-addressed uh envelopes,
which is a huge we to my I I Iwouldn't say we, my wife wrote
uh a lot of the addresses thelast two years.
I tried to pitch in, so that wasa big hack.

SPEAKER_00 (11:36):
That's nice.

SPEAKER_01 (11:37):
Um all right.
Well, thank you, Amy.
This was great.
Um, really appreciate it asalways.
And stay tuned because I thinkwe're gonna be doing a few more
of these.

SPEAKER_00 (11:45):
Yeah, yeah.
I think we are gonna invite someother NASIO staff on and hear
about some different parts ofthe state CIO survey so we don't
have to talk about it all in onebig episode.

SPEAKER_01 (11:55):
Thanks again for listening to NASIO Voices.
This podcast is a production ofthe National Association of
State Chief and ProfessionalOfficers.
Learn more at NATSIO.org.

SPEAKER_00 (12:03):
We'll be back soon with more insights from the
State CIO survey.
Have a great one.