U.S. government investment in artificial intelligence (AI), which amounted to $4.38 billion in 2022, is designed to benefit not only national security and government operations but also American society. This two-pronged approach has led to discoveries about the advantages of AI in areas beyond governance, including healthcare, transportation, the environment, and others.
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Starting with an endorsement of “man-machine cooperation” by then-President John F. Kennedy’s Science Advisory Committee in 1962, numerous presidential administrations have encouraged AI research and knowledge, including in the workforce, education, and government. These efforts included an Obama administration 2016 report titled “Preparing for the Future of Artificial Intelligence;” the Trump administration’s “American AI Initiative,” launched in 2019; and the Biden administration’s executive order on the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” issued in October 2023.234
As AI technology advances, the government is exploring ways to harness and leverage it in its operations while setting and maintaining appropriate guardrails.
KEY TAKEAWAYS
- Artificial intelligence (AI) has become increasingly important in various sectors, including government services.
- The U.S. government is actively harnessing AI technologies to improve its services and operations.
- AI offers numerous benefits in areas such as healthcare, transportation, the environment, and benefits delivery.
- The federal government has initiated various projects and initiatives to leverage AI technologies.
- Responsible use of AI in government requires establishing strong guardrails and addressing ethical and privacy concerns.
AI Initiatives in the U.S. Government
President Joe Biden’s October 2023 executive order (EO) on the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence” provides extensive guidance for government involvement in AI.5
Primary Directives
The Biden EO directs U.S. government agencies to establish safety and security standards, protect privacy, advance equity and civil rights, promote innovation and competition, and advance American AI leadership worldwide. An overview of the document’s eight primary directives follows.654
New Standards for AI Safety and Security
The EO directs government agencies to ensure robust, reliable, repeatable, and standardized testing and evaluations of AI systems. The administration will also help develop adequate labeling and mechanisms to ensure the origin of AI content.
Promoting Innovation and Competition
AI-related education, training, development, research, and capacity investments must be leveraged to address specific intellectual property (IP) questions. Agencies must promote competition by providing small developers access to technical assistance and encouraging the Federal Trade Commission (FTC) to exercise its authority to enforce competition and protect consumers.
Supporting Workers
Government departments must develop principles and best practices to mitigate the harms and maximize the benefits of AI for workers. This will require addressing job displacement, labor standards, workplace equity, health and safety, and data collection.
Advancing Equity and Civil Rights
Government use of AI will comply with all federal laws and promote substantive oversight and engagement with all communities to protect against unlawful discrimination and abuse. Coordination between the U.S. Department of Justice (DOJ) and federal civil rights offices will play a significant role in these efforts.
Standing Up for Consumers, Patients, and Students
To protect consumers and promote the responsible use of AI in domains such as healthcare and education, the administration will enforce existing consumer protection laws and enact safeguards against fraud, unintended bias, privacy violations, and other harmful effects. This will include advancing the responsible use of AI in developing affordable and lifesaving drugs and advancements in other health-related areas.
Protecting Americans’ Privacy
The lawful, secure collection, use, and retention of data must promote privacy by directing federal agencies to use privacy-enhancing technologies (PETs) where beneficial. Congress is also urged to pass bipartisan data privacy legislation.
Ensuring Responsible and Effective Government Use of AI
Agencies will ensure the responsible government deployment of AI and work to modernize federal AI infrastructure in various domains, such as regulation, governance, benefits, procurement, and security. The government will further accelerate hiring AI professionals as part of a government-wide AI talent surge led by the Office of Personnel Management, the U.S. Digital Service, the U.S. Digital Corps, and the Presidential Innovation Fellowship.
Advancing American Leadership Abroad
Government agencies are directed to engage with international partners to develop a framework to manage AI risks while advancing American leadership in safety, security, trust, and AI development. This will include the expansion of bilateral, multilateral, and multistakeholder collaborations on AI; accelerated development and implementation of vital AI standards with international partners; and promoting safe, responsible, rights-affirming development and deployment of AI worldwide.
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The number of American AI government use cases, as of September 20236
AI Initiatives and Projects in Government Agencies
President Biden’s October 2023 executive order mandates U.S. government agencies to pursue various AI initiatives. For example, the president directed the organization of an interagency council to coordinate AI development, assess the ability of federal agencies to adopt AI, and address national security risks and benefits.4
Highlights of the main initiatives for different agencies are shown in the table below.
| Agency | Directive |
| Department of Agriculture (USDA) | Issue guidance on automated systems for public benefits programs |
| Department of Commerce | Develop guidance for authenticating AI-generated content |
| Department of Defense | Establish a pilot program to identify vulnerabilities in critical systems |
| Department of Education | Develop guidance on responsible AI use in education |
| Department of Health and Human Services (HHS) | Prioritize responsible AI development and create an HHS AI Task Force |
| Department of Housing and Urban Development (HUD) | Issue guidance on fair lending and housing laws to prevent discrimination by AI |
| Department of Energy | Coordinate responsible AI governance across the government |
| Department of Homeland Security | Ensure that AI development aligns with U.S. values |
| Department of Justice (DOJ) | Identify best practices for recruiting and hiring law enforcement professionals with AI skills |
| Department of Labor | Analyze agency abilities to support workers displaced by AI |
| Department of State | Expand international partnerships in AI |
| Department of Transportation (DOT) | Examine the safe use of AI in transportation |
| Department of the Treasury | Review antitrust guidance and enforcement policies related to AI |
| Department of Veterans Affairs (VA) | Host AI Tech Sprint competitions |
| Federal Trade Commission (FTC) | Protect consumers and enforce competition in the sector |
| Federal Communications Commission (FCC) | Examine how AI can aid in the fight against unwanted robocalls and robotexts |
| General Services Administration (GSA) | Prioritize funding for AI projects for at least one year |
| National Science Foundation (NSF) | Fund and launch at least one NSF Regional Innovation Engine |
| Office of Personnel Management | Coordinate a pooled hiring action to recruit AI talent and develop guidelines on using generative AI by the federal workforce |
| Patent Office | Publish guidance on how to address the use of AI in patents |
| Small Business Administration (SBA) | Support small businesses innovating with AI and assess existing programs’ eligibility criteria for AI expenses |
Ensuring Responsible Use of AI in Government
Government agencies regularly call for the responsible use of AI. This includes mandates for compliance with laws that protect privacy, civil rights, and civil liberties. The benefits of AI come with potential pitfalls that create a need to establish strong guardrails to ensure AI keeps people safe and doesn’t violate individual rights.
AI Safety and Security
Section 4 of the Biden EO addresses AI system vulnerabilities through the Defense Production Act of 1950. AI companies must report safety test results and other information for systems that may pose national security or infrastructure risks. Federal agencies must establish guidance and standards for safe AI development and use and promote research and collaboration to address potential risks. Workforce development plans for integrating AI technology are also required.4
Ethical Considerations and Privacy Concerns
AI has raised ethical concerns about privacy, bias, accountability, and transparency. Despite ideological differences between administrations, government AI policies have attempted to address these concerns since 2016. AI systems require large amounts of data, which can raise privacy concerns. Bias can result from training AI systems on non-representative data, leading to discriminatory outcomes. AI decisions can have significant impacts on individuals, making accountability critical. The transparency of AI decision-making processes is also important for individuals to understand how and why decisions are made.4
FAST FACT
The AI for autonomous situational awareness system is one use-case example for the Department of Homeland Security that was proposed for customs and border protection. It is intended to use Internet of Things sensors, high-resolution cameras, and motion sensors to covertly detect and analyze illicit border crossings in remote locations while creating a low-cost, low-power footprint.7
Benefits of Artificial Intelligence in Government Services
AI can offer several benefits to the government, such as improved efficiency, accuracy, and decision making. AI can automate repetitive tasks, freeing up employees to focus on higher-value tasks. AI can eliminate errors and inconsistencies for improved accuracy and consistency of government services. AI can facilitate data-driven and evidence-based decisions, as well as personalized and responsive services. Additionally, AI can save costs by reducing the need for manual labor and streamlining processes.68
AI has shown benefits in specific areas, such as healthcare, transportation, the environment, and delivery of government benefits. HHS leverages AI to solve problems and improve patient outcomes. The DOT uses AI in three areas: drone operations, traffic management, and railroad safety. AI is used in the environment to monitor natural resources and predict natural disasters. AI can also reduce the workload for workers and assist caseworkers. The Social Security Administration (SSA) uses data analytics and computer systems to process claims more efficiently.910111213
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Challenges and the Future of AI in Government Services
AI constantly evolves, and potential advancements include improving accuracy and efficiency, creating more human-like systems, personalizing medicine, and addressing global challenges.
However, implementing AI in government services has several challenges, such as a lack of skilled personnel, data privacy and security concerns, integration with existing systems, and transparency and accountability. Addressing these challenges requires a collaborative approach involving government agencies, AI developers, domain experts, and citizens. Governments need to invest in training, establish clear policies and guidelines, and engage citizens to build trust and ensure accountability.
How Is Artificial Intelligence Being Used in Healthcare by the U.S. Government?
One of AI’s most significant applications is in medical imaging to improve accuracy and speed up diagnosis. The U.S. government also uses AI to analyze health data in order to identify trends and patterns that can inform public health policy decisions.15
What Are the Potential Benefits of AI in Improving Transportation Services?
AI-powered technologies can be used to optimize traffic flow, reduce congestion, and improve overall road safety. Additionally, AI can predict demand for transportation services, enabling providers to allocate resources more efficiently and reduce wait times. AI enables transportation providers to improve routes and schedules and provide more personalized services to passengers.
What Initiatives Has the U.S. Government Undertaken to Leverage AI Technologies?
Initiatives include an Obama administration 2016 report titled “Preparing for the Future of Artificial Intelligence;” the Trump administration’s “American AI Initiative,” launched in 2019; and the Biden administration’s executive order on the “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” issued in October 2023.234
Furthermore, the National Institute of Standards and Technology (NIST) has been tasked with developing AI standards, while the National Science Foundation (NSF) is funding research in AI and machine learning. Additionally, several federal agencies, including the Department of Defense and the Department of Energy, are investing in AI technologies to enhance their operations and capabilities.
What Are the Ethical Considerations and Privacy Concerns Associated with AI in Government?
Law enforcement agencies’ use of facial recognition technology has raised concerns about surveillance and potential privacy violations. Additionally, there are concerns about the potential for AI to perpetuate bias and discrimination, particularly in the criminal justice system. The use of AI in decision-making processes, such as those related to hiring or lending, could also have unintended consequences and reinforce existing biases.
How Much Money Has the U.S. Government Spent on AI?
According to the most recent figures, the U.S. government spent approximately $4.8 billion on AI research and development in 2022. This includes funding for various agencies such as the National Science Foundation, the Department of Defense, and the Department of Energy. This funding is expected to increase in the coming years, as AI plays an increasingly important role in government operations.1
The Bottom Line
The potential of AI to transform government services and improve public welfare is immense. AI can help streamline bureaucratic processes, enhance decision-making capabilities, and enable more efficient delivery of public services.
For example, AI-powered chatbots can provide 24/7 customer support, reducing wait times and improving the overall experience for citizens. AI can also be used to analyze vast amounts of data to identify patterns and trends, which can inform policy decisions and resource allocation.
By harnessing the power of AI, the government can enhance its capacity to serve its citizens and improve the overall well-being of its communities. Additionally, the use of AI in government services may be imperative to achieve efficiency, accuracy, and cost containment, especially as both the number of government services and the population continue to expand.
While advantages of AI—especially in healthcare, transportation, the environment, and benefits delivery—are numerous, responsible use of AI in government requires establishing strong guardrails and addressing ethical and privacy concerns.