tl;dr: Public sector IT leaders are balancing innovation with real constraints. At our State and Local Government Advisory Board, we discussed practical paths forward: focus AI on ROI, strengthen cyber resilience and build strategic partnerships that unlock funding and momentum. With the right framework, agencies can modernize with confidence and deliver better outcomes for residents.
At Dell Technologies, we believe progress is a collaborative effort. That’s why we recently brought together our State and Local Government (SLG) Advisory Board, a dedicated group of C-suite-level IT leaders from across the country. Our goal was to foster a true partnership, sharing our vision for the future while gaining a deeper understanding of the complex realities they face. The conversations were candid and insightful, reinforcing a central theme: navigating the duality of innovation, where immense promise is balanced by inherent risks.
The enduring challenges: Funding, workforce, and modernization
It is no secret that public sector IT leaders consistently face challenges with funding, workforce talent, and technology modernization. We heard firsthand about the immense pressure of doing more with less. Leaders described facing significant budget constraints and ongoing financial pressures, with many pointing to recent rounds of budget cuts and hiring freezes that continue to stall progress.
This situation creates a difficult cycle for state and local leaders. Innovation is necessary to serve communities better and operate more efficiently, but the required upfront investment is often the first thing to be cut when budgets are tight. This highlights the need for strategic partnerships that can help leaders build a business case for technology investments that deliver long-term value.
Demystifying AI: From hype to tangible ROI
While the potential power of AI to transform how governments operate is clear, IT leaders are rightly concerned about governance, data privacy and how to best deploy the technology. The conversation has shifted from excitement about the technology itself to a practical focus on its real-world application.
Our Global CTO and Chief AI Officer, John Roese, explained during his session that our focus is on cutting through the hype. “AI should only be used if it maps directly to a return on investment,” he stated. “We’re applying this principle internally, from streamlining sales prep to optimizing our service dispatches. It’s not about AI for AI’s sake; it’s about driving tangible value.”
This focus on value is critical. As one leader noted, the CIO’s role has evolved to become an AI educator and catalyst for innovation. CIOs are now responsible for creating a secure framework and giving users the space to explore AI safely. Simply having AI technology is not enough. The real power is in its application as a problem-solving tool, moving beyond identifying challenges to developing concrete use cases that improve resident experiences and deliver measurable outcomes.
Building resilience in the AI era
As agencies embrace AI and enhance services, the cyber threat landscape grows more complex and demanding. Disruptive cyberattacks on critical infrastructure—such as airports or utilities—can have far-reaching consequences, making supply chain and cyber infrastructure security more important than ever.
Our Chief Security Officer, John Scimone, reminded us that as technology evolves, so must our approach to security and resilience. He highlighted three essential principles:
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- Protect your organization’s use of AI to ensure it operates as intended.
- Defend your organization against adversarial AI that seeks to exploit systems.
- Strengthen your organization with AI by harnessing its capabilities to enhance security.
At Dell Technologies, we integrate security into our products and processes and safeguard the technology supply chain, working alongside government agencies to build a resilient foundation for innovation. With the right strategies in place, governments can move forward with confidence and deliver secure, transformative outcomes for their communities.
To explore practical strategies for securing AI systems in state and local governments, check out my recent byline in StateTech: “Debunking AI Security Myths for State and Local Governments.”
The path forward: A commitment to partnership
The most powerful message from the advisory board was the desire for a true strategic partnership to help them see what’s next in technology. Leaders urged us to engage proactively and help them navigate complex procurement processes for emerging technologies, like AI.
We heard the requests for forward-looking technology trend insights and support in identifying funding through programs like our Dell Grants Office Support Program.
These discussions are invaluable. They don’t just inform us; they shape our strategy and deepen our commitment to the public sector. The challenges are complex, but by working together, we can turn insights into action and accelerate intelligent outcomes that benefit every member of the community.
