The State of Public Sector AI
Where government will use AI most in 2027 and beyond, where it stalls, and how the partners who serve it should build. Covering federal, state, local, higher education, and K-12, synthesized from 29 public sources.
Six findings that shape 2027
Adoption has doubled. Production hasn't caught up.
Federal AI use cases rose 105% to 3,611 in a year. About half are deployed or piloted.
Use is outrunning guardrails.
Six in 10 teachers use AI for work; 18% have formal guidance.
Demand is concentrating, and agents are next.
64% of state CIOs call agentic AI the most impactful technology ahead.
The binding constraints sit upstream.
Data, authorization, and governance decide what ships.
Buying is getting faster, and more demanding.
Consumption pricing and an AI fast lane in FedRAMP are resetting expectations.
Value measurement is the missing layer.
Just 13% of higher ed institutions measure AI ROI.
Plus a 2027 demand map, segment deep dives, the seven dimensions that decide whether AI reaches production, and a playbook for both government leaders and vendors.
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