Every time a new digital service goes live — a permitting portal, a benefits app, a scheduling tool — there’s an IT team behind it trying to keep pace. But as demand rises, staffing and systems are falling behind. Budgets are tight, timelines are short, and expectations for speed and security continue to grow.
That pressure is forcing agencies to rethink how they work. The latest State of IT in the Public Sector report reveals how agencies are responding and where they’re focusing next to work smarter, modernize systems, and prepare for AI. From data cleanup to automation, here are three ways agencies are working to build smarter, more resilient services.
1. Modernize legacy systems to reduce drag.
Outdated infrastructure is slowing teams down. Nearly 29% of public sector IT projects are missing deadlines, often because stretched teams are stuck maintaining aging systems while also standing up new services.
Legacy platforms increase costs, complicate security, and force teams to spend valuable time resolving issues manually — especially when data is scattered across disconnected tools.
To move faster and build smarter, many agencies are shifting to cloud-first platforms, consolidating systems, and strengthening their architecture. Moving away from legacy infrastructure helps reduce maintenance demands, improve reliability, and create a stronger foundation for tools like automation and AI.
2. Prepare for AI with a strong data foundation.
Public sector leaders see the potential of AI — but they know it depends on reliable data. In fact, 30% of IT professionals say improving data accuracy is one of AI’s most promising use cases.
That’s especially relevant as agencies explore agentic AI — tools that rely on connected, trustworthy data to make decisions and take action. Without that, AI efforts stall or create more work than they solve.
As a result, many agencies are pivoting to data hygiene, integration, and governance. Some are consolidating systems to cut down on duplication. Others are automating data validation to reduce manual errors. The end goal is the same: reliable, accessible information that can power smarter tools — and smarter decisions.
3. Use AI agents to extend team capacity.
As demand for digital services grows, many agencies are turning to AI agents for help. 81% of public sector IT leaders say they’re already using, or plan to use, AI agents in the next two years. These tools can draft responses, route requests, or process documents — freeing staff to focus on complex cases, cross-agency collaboration, or longer-term planning.
But adoption isn’t just about plugging in new tech. Success depends on strong data pipelines, thoughtful use cases, and clear guardrails. AI agents are most effective when they’re supporting the work, not replacing it.
For agencies facing budget constraints and talent shortages, this kind of support can make a real difference. When people can offload repeatable tasks, they can respond faster, with less burnout and better outcomes for the communities they serve.
Build for impact, not just speed.
Public sector IT teams are making hard trade-offs every day — choosing where to invest time, how to allocate limited resources, and which systems to modernize first. The ones making progress are focused on the basics: improving data quality, streamlining workflows, and reducing duplication across platforms.
That work isn’t always visible, but it adds up. It makes services more responsive, reduces risk, and lays the groundwork for future innovation — including AI. Whether you’re modernizing infrastructure or piloting AI, the goal stays the same: Deliver better outcomes with the team and tools you already have.
The State of IT in the Public Sector
We surveyed 4,000+ IT leaders worldwide to uncover the trends, priorities, and challenges shaping the public sector IT landscape. See how public sector IT leaders are navigating these challenges — and where they’re headed next.
