Enhancing government resilience with technology amidst uncertainty

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In 2025, governments at city, state, and federal levels in the US have faced significant uncertainty. Economic challenges, such as persistent inflation and fluctuating labor markets, have put pressure on public budgets and complicated plans for infrastructure investment. Large-scale federal layoffs, along with ongoing debates about artificial intelligence (AI) governance and digital privacy, have led to legal disputes and increased public distrust. Cities are under pressure to tackle issues like climate resilience, housing affordability, and public safety, often without substantial federal assistance. State governments, dealing with their own budget limitations, have struggled to balance funding for essential services with long-term infrastructure projects. This mix of economic, political, and social challenges highlights the necessity for more agile and resilient governance across all levels.

Essential tools for government employees

Emerging technologies, particularly those powered by AI and machine learning, have the potential to alleviate challenges such as economic uncertainty, workforce shortages, and increasing operational costs. In governmental operations, these technologies can streamline administrative processes, optimize resource distribution, and enhance service delivery, thus easing the burden on overstretched workforces. One example is predictive analytics, which can aid in planning infrastructure maintenance, while automated chatbots can manage routine inquiries from citizens, allowing staff to focus on more impactful tasks. As governments face budget limitations and evolving policy priorities, these technologies offer a chance to increase efficiency, boost citizen engagement, and assist agencies in navigating uncertainties through smarter, data-driven decisions. Key findings from a study conducted by 451 Research, a part of S&P Global Market Intelligence, demonstrate how governments are adopting internet of things (IoT) and AI applications to strengthen resilience.

These applications are utilized across various areas, including back-office operations, planning tools, and physical infrastructure. Typically, IT departments oversee the acquisition and management of these technologies. However, there is an increasing trend of individual departments—such as public works, transportation, public safety, economic development, and utilities—investing in emerging tools to enhance efficiency amid resource and budget limitations.

In 2024, the top three most commonly implemented use cases by governments were chatbots (used by 49% of respondents), predictive maintenance (38%), and smart grid technologies (30%). The wide range of these technologies underscores the critical role digital transformation plays in modernizing government operations. The variety of these deployments illustrates how governments are leveraging technology to enhance operational efficiency, achieve cost savings, and improve service delivery.

Broadly, these emerging technologies span four primary categories:

1. Asset management and infrastructure optimization: Technologies in this area, such as digital twins and predictive maintenance, focus on reducing downtime and maintenance costs. They help minimize service disruptions and predict asset failures, with nearly 40% of governments deploying predictive maintenance and about 30% using operational digital twins. These tools are crucial for resilience, aiding in disaster preparedness and response.
2. Data processing and decision support: These technologies, including robotic process automation and computer vision, enhance efficiency by streamlining administrative processes. They reduce manual labor and improve infrastructure modeling. Adoption is growing, with 44% of governments using or planning to use computer vision, and a significant portion planning to implement 3D simulations for urban planning.
3. Public services and citizen engagement: Technologies like government chatbots and V2X infrastructure aim to improve communication and service delivery. Chatbots are rapidly being adopted, with 49% of governments using them for inquiries and translation services. V2X infrastructure, used by 23% of governments, enhances transportation safety and mobility by providing real-time vehicle movement insights.
4. Energy and sustainability infrastructure: This category focuses on optimizing energy distribution and supporting sustainability goals. Smart grid technologies are increasingly common, with 30% of governments already implementing them to improve grid reliability and integrate renewable energy sources. These technologies are crucial as cities face challenges like power outages and rising energy costs.

Navigating challenges with digital transformation

In 2025, economic instability, escalating energy costs, and political and social upheaval are significantly impacting government operations. These hurdles are prompting governments to adopt cost-saving strategies, invest in efficient technologies, and prioritize sustainability efforts. Faced with the need to maximize output with limited resources, public sector leaders are increasingly embracing digital transformation. These strategic shifts are vital as governments strive to manage financial constraints, rising costs, and societal demands for greater transparency and efficiency.

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