{"id":332,"date":"2026-06-24T19:10:42","date_gmt":"2026-06-24T19:10:42","guid":{"rendered":"https:\/\/marketrelocationreport.com\/?p=332"},"modified":"2026-06-24T19:10:42","modified_gmt":"2026-06-24T19:10:42","slug":"the-public-sector-agentic-era-trading-pilots-for-transformation","status":"publish","type":"post","link":"https:\/\/marketrelocationreport.com\/?p=332","title":{"rendered":"The public sector agentic era: Trading pilots for transformation"},"content":{"rendered":"
\n

The agentic era marks a significant paradigm shift for the government. Technology leaders are no longer asking if AI can be implemented or what AI can do, but rather how fast it can be deployed to solve the nation\u2019s most pressing challenges. From federal agency headquarters to local city halls, all levels of government are answering this question by using AI to transform critical operations. Use cases range from accelerating drug approval processes, to unifying previously siloed IT operations, to managing logistics and public safety as the City of Los Angeles prepares to host several major events over the next three years, to creating more personalized learning journeys for health care students.\u00a0<\/p>\n

Read more Space Force acquisition nominee faces ethics scrutiny over defense industry ties<\/a><\/p>\n

\u201cThrough our research, we\u2019ve found that public sector organizations, in particular, have been early and ambitious adopters of AI and agents,\u201d said Karen Dahut, CEO of Google Public Sector, at Google Cloud Next. \u201cAccording to our Return on Investment of AI in the Public Sector report, 55% of public sector leaders say that their organizations are already using AI agents, 42% report that their organization has deployed more than 10 agents, and nearly half, 46%, say their productivity has at least doubled thanks to AI agents.\u201d This measurable ROI is shifting the mission focus from simple task completion to delivering faster, more personalized and equitable outcomes for the public.<\/p>\n

By embracing the agentic era and leveraging a purpose-built unified AI stack as a force multiplier \u2014 rather than the fragmented legacy \u2018Gov clouds\u2019 of the past \u2014 government leaders are gaining a commercial-grade path to innovation that ensures security and governance are built-in, not bolted on.\u00a0<\/p>\n

AI as an accelerator<\/strong><\/p>\n

In 2025, the Trump Administration released its AI Action Plan emphasizing the importance of accelerating AI adoption in government. \u201cTransformative use of AI,\u201d the plan states, \u201ccan help deliver the highly responsive government the American people expect and deserve.\u201d In practice, AI serves as an accelerator by automating the \u201cadministrative toil\u201d that often slows public sector missions.<\/p>\n

First, agencies are turning to AI to alleviate the burden of repetitive, low-level tasks, freeing employees for more advanced, higher-level thinking. In other words, AI helps the government workforce shift from being information or data gatherers to decision makers.<\/p>\n

The Defense Logistics Agency (DLA), for example, manages the end-to-end U.S. defense global supply chain \u2014 a monumental lift in terms of scale and complexity. Partnering with Google Public Sector, the agency launched the DLA Enterprise Platform as a foundation for AI-driven modernization.<\/p>\n

Now, with the help of AI, \u201cYou don’t have to collect different spreadsheets like we did before, in terms of what is the Air Force ordering, what’s been consumed,\u201d said Adarryl Roberts, DLA Chief Information Officer. \u201cWe automated that \u2026 so that they can actually focus on the decision that has to be made based on that information versus spending hours, days or weeks gathering the information.\u201d\u00a0<\/p>\n

The U.S. Food and Drug Administration (FDA) is similarly working to accelerate critical decision-making to as close to real time as possible. The agency\u2019s vision, said Jeremy Walsh, the agency\u2019s Chief AI Officer, is to transform the FDA into a \u201creal-time regulatory environment.\u201d As a document-based organization, drug approvals have typically taken around 10 years from start to finish, with a significant portion of time spent on tedious paperwork.<\/p>\n

The timeline for filing review, for instance, is 60 days, and \u201cit made sense when we had paper,\u201d Walsh said. But now, with AI, \u201cwe\u2019re going to get that down to a couple of hours.\u201d Add together similar AI-powered time savings throughout the traditional decade-long approval process and suddenly 10 years is cut in half.\u00a0<\/p>\n

\u201cThat’s the story at the FDA,\u201d Walsh summarized. \u201cIt’s rapid utilization of AI to drive huge public health outcomes for the American public to be able to get things onto market faster \u2026 and to protect them when things do come on market.\u201d<\/p>\n

At the Department of Transportation (DOT), partnering with Google Public Sector has served as both an accelerator and a unifier. With numerous sub-departments within the agency, the DOT struggled with siloes causing inefficiencies.\u00a0<\/p>\n

\u201cThe goal the secretary has mandated for us is to unify and strengthen the department. We call it OneDOT,\u201d said Pavan Pidugu, DOT\u2019s Chief Digital and Information Officer, of the effort to consolidate IT operations and infrastructure.\u00a0\u00a0<\/p>\n

In just 22 days, the DOT was able to deploy and migrate initial users to Google Workspace. Within 160 days, the entire department and 1 billion emails were migrated to the new environment, Pidugu said.\u00a0<\/p>\n

\u201c[Just] because we are the federal government doesn\u2019t mean our projects have to be three to four years or longer,\u201d Pidugu said. \u201cWe are the U.S. federal government, and why can\u2019t we be the role models to the rest of the industry? \u2026 We ignited that spirit in the next project that we’re working on, and the next project we’re working on, to be able to beat that benchmark again.\u201d<\/p>\n

AI as a force multiplier<\/strong><\/p>\n

While many agencies use AI to compress timelines, the City of Los Angeles is using it to expand capacity. LA officials are preparing to host several major events in three years: the 2026 FIFA World Cup, the 2027 Super Bowl and the 2028 Summer Olympics and Paralympics. Though the city already employs more than 27,500 people, scaling human capital to support these upcoming events simply isn\u2019t feasible without technology.<\/p>\n

\u201cHow do you empower 27,500 employees to handle this once-in-a-lifetime effort? The reality is, you need force multipliers,\u201d said Ted Ross, Chief Information Officer for the City of Los Angeles. \u201cYou need tools like artificial intelligence, which don’t replace our workforce, but amplify their ability to deliver.\u201d<\/p>\n

Read more Pentagon\u2019s growing role as an investor draws new scrutiny on Capitol Hill<\/a><\/p>\n

Leading up to the Olympics, LA is turning to AI to meet three preparedness goals:\u00a0<\/p>\n

    \n
  1. Get stuff built. <\/strong>While LA is a no-build host in terms of net-new buildings and infrastructure, the city will still be retrofitting and modifying existing venues. AI is a critical tool for smart construction planning, code compliance monitoring and more.\u00a0<\/li>\n
  2. Get stuff done. <\/strong>AI-powered tools act as connective tissue across the city\u2019s enterprise, bridging the gap between disparate data and entrenched legacy processes. AI agents can manage entire business process workflows, simplifying complex tasks and enhancing the workforce\u2019s ability to communicate with residents and visitors in multiple languages.<\/li>\n
  3. Get stuff moving. <\/strong>With massive crowds descending upon the city \u2014 spectators, media, officials from other nations \u2014 LA will use AI for real-time traffic optimization, public transit safety and autonomous fleet orchestration.<\/li>\n<\/ol>\n

    The City of Los Angeles is using AI to translate messages into multiple languages to better serve residents, and to build the technological foundation for future events during a highly complex and historically significant period of time.<\/p>\n

    \u201cI can\u2019t hire 15,000 more people. I need the tools to be able to facilitate [these] efforts,\u201d Ross said. \u201cThat\u2019s how we get LA built for the Olympics.\u201d\u00a0<\/p>\n

    Building an AI-forward culture<\/strong><\/p>\n

    Turning AI into a cornerstone of public sector operations is about people just as much as tools and solutions. AI success is built on workforce preparedness \u2014 do they know how to use new tools? Do they have access to training? Most importantly, are they open to and permitted to experiment?<\/p>\n

    \u201cThe technology really wasn\u2019t the hard part,\u201d said Sean Maday, Co-Founder and CTO of Game Plan Tech. \u201cThe harder part is that this is really a behavioral change inside the organization.\u201d\u00a0<\/p>\n

    Such a change requires a \u201cpermission structure\u201d that flows from the top down. When the workforce sees executive leadership embracing a new technology, it validates both its importance and their license to use it.<\/p>\n

    \u201cBecause of the intense pressure of what we’re doing day to day [in the DLA], lives being maintained, particularly in our agency, folks don’t like to trust something that they haven’t seen,\u201d Roberts said. \u201cPart of this is creating that safe space, that decision space, where you allow some grace and allow that decision to fail early, learn and make that part of the process.\u201d<\/p>\n

    Experimenting begins with evaluating the status quo, identifying areas for improvement and developing a plan. AI integration is an opportunity to prioritize business process improvement across an organization. If AI agents are intended to accelerate workflows, those workflows first need to be optimized. There\u2019s little value in turbocharging an inefficient workflow.<\/p>\n

    \u201cWe started to do Lean Six Sigma training across our organizations, so people aren’t just taking a tool and trying to hyper speed a Rube Goldberg 80-step complex process,\u201d Ross said. \u201cLet’s sit down. Let’s reevaluate it. Let’s clean things up before we start to introduce advanced technologies.\u201d<\/p>\n

    At Covista, the nation\u2019s largest healthcare educator, AI training isn\u2019t just part of workforce training \u2014 it\u2019s being baked directly into the academic journey. The organization is partnering with Google Cloud to launch a comprehensive AI credentials program for healthcare students and practicing clinicians. In just the first week, 3,500 students signed up for the new AI credentials program, according to Camilla Sullivan, Vice President of Innovation and AI at Covista.<\/p>\n

    For both Covista staff and students, \u201cthis is a hands-on learning situation,\u201d Sullivan said. \u201cEvery little thing we can do to support the student journey and increase their chance of success, AI gives us the opportunities to do things you couldn’t even imagine just a few years ago.\u201d<\/p>\n

    Ultimately, an AI-first culture hinges upon collaboration. Whether working across departments and agencies or with industry partners, the most effective path to successfully embracing the agentic era is collaborative.\u00a0<\/p>\n

    “AI is a ‘go-as-a-group’ conversation. You can run out there on your own, and then you’ll have no organizational support, and your workforce hasn’t made the change,\u201d Ross said. \u201cThe real benefits are cross workforce.” Simply stated, with AI, if you want to go far, go as a group.<\/p>\n

    Learn more<\/em> about how Google Public Sector is bringing government organizations at all levels into the agentic era.\u00a0\u00a0<\/em><\/p>\n

    Read more Lawmakers warn acting intelligence chief against major workforce changes<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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