New research from Euna Solutions sheds light on how government agencies across North America are starting to use artificial intelligence. While many are still exploring the technology, some operational areas are already seeing measurable benefits. These include tasks like procurement, budgeting, managing grants, and processing payments. The report highlights that practical AI applications are making government workflows more accurate and efficient.

Most Agencies Are Curious But Not Fully Implementing AI

The report finds a big gap between interest in AI and actual deployment. More than half of agencies—around 57%—are actively exploring AI, learning what it can do and how it might help them. However, only a small percentage, about 16%, are testing small projects, and just 1.6% have rolled out AI across entire departments. This shows that while enthusiasm is high, full-scale adoption is still rare.

Many barriers slow down progress. Agencies face structural challenges like concerns over security and privacy, unclear rules for governance, outdated legacy systems, and limited staff capacity to implement new tech. These factors make it harder to move from experimentation to wider deployment, despite the interest in AI’s potential.

Operational Workflows Are Leading the Way in AI Adoption

The report notes that early AI success stories focus on automating routine, rules-based tasks. For example, procurement teams are generating requests for proposals (RFPs) with AI, which 29% of respondents see as a near-term use case. Forecasting and scenario planning are also popular, with 27% exploring how AI can improve these processes. Additionally, AI is being used for grants research and matching, with 25% of agencies interested in this area.

Most agencies are looking for quick wins that save time and boost productivity. Over two-thirds of respondents said that hours saved and increased efficiency are their top goals. Cost savings and more advanced, generative AI tools are seen as longer-term or less immediate priorities. The focus remains on practical applications that can improve day-to-day operations right now.

Barriers Are Structural, Not Motivational

The report emphasizes that agencies want to adopt AI, but many lack the foundational conditions to do so safely and effectively. Concerns over security and privacy are significant hurdles. Unclear policies and governance frameworks also slow progress. Many agencies are working with outdated systems that don’t easily integrate with new AI tools.

Limited staff capacity is another obstacle. Implementing AI requires specialized skills that many public sector organizations currently lack. These structural issues mean that enthusiasm alone isn’t enough. Agencies need clearer guidance, better infrastructure, and more resources to scale AI adoption responsibly.

Overall, the report suggests that AI is no longer a distant future for government. It’s happening now, but mainly in operational workflows that can deliver quick, measurable benefits. Addressing the structural challenges can help more agencies move from curiosity to full deployment, unlocking AI’s potential to improve government services for everyone.

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• https://ai-techpark.com/euna-solutions-releases-state-of-ai-in-the-public-sector-report/