Driving government efficiency through AI and digital modernization

But AI can only achieve its potential when it is given the contextual knowledge that those closest to the mission possess. This is why it’s essential to get program and mission specialists working with technology in secure environments; they will discover how to employ AI in a way that brings value to the mission. [Editor’s Note: See how we’re helping our clients deploy AI agents to tackle complex tasks.]

2. Empower cross-functional teams to deliver big impact

The shift to Agile software development led to small, cross-functional teams that rapidly delivered valuable functionality. Agency leaders can unlock more agility, speed, and yes, efficiency by expanding this fusion team approach to teams and programs more broadly.

What does this look like in practice? Imagine a major digital modernization initiative, such as converting a legacy paper-based certification process to a digital one. Instead of relying on layers of bureaucracy, agency leaders can instead assemble a small, cross-functional team of experts and authorize them to make decisions that account for business goals, user needs, and technical requirements. This was the approach we took to help CMS modernize their laboratory certification process—and the agency was able to go further, faster as a result.

3. Collaborate across data silos to unlock insights

Good data is the foundation of effective AI. The federal government has an abundance of data, but its potential is limited due to silos and interoperability gaps.

Collaboration across departments, agencies, and datasets is needed to maximize resource sharing and enhance overall efficiency. By embracing modern data standards such as Fast Healthcare Interoperability Resources (FHIR), agencies can break down silos and set the stage for improved data access and sharing. In our work with federal clients, we have seen the impact of data harmonization on program efficiency and mission outcomes, as well as the power of real-time data sharing APIs to improve public health emergency response.

Sharing real-time data saves lives. Standards like FHIR can help hospitals and public health agencies seamlessly exchange critical information—like ICU capacity and PPE availability—through EHR-integrated FHIR APIs. This streamlines reporting, allowing hospitals to focus on patients while agencies access the data they need, when they need it.

Looking ahead: Sustaining and scaling impact

Digital modernization and transformative AI technologies offer the promise of smarter, faster, and more efficient government service delivery. But to achieve long-term, sustainable impact that truly moves the needle, agencies must shift from one-off projects and pilots to an enterprise-wide view of their modernization efforts. Here’s what that can look like in practice:

People: Embrace visionary leadership

While much is changing in today’s federal landscape, some things remain the same: Transformative leaders bring transformative results. With many eyes on their actions, federal agency leaders should focus on using advanced technology to deliver better citizen experiences and accelerate time-to-value—taking an intentional approach to modernization that prioritizes innovation and is squarely focused on improving outcomes.

And while policies and regulations are essential for ensuring the safe and reliable delivery of government services, they don’t have to hinder innovation. Technology can play a crucial role in streamlining compliance, enabling agencies to meet security requirements efficiently. Automated tools for managing software bills of materials (SBOMs), penetration testing, and security scans, for example, help government teams maintain compliance while accelerating progress with greater confidence.

In many cases, the real challenge is not the policies themselves but how they are understood, interpreted, and applied. Existing laws and procurement strategies offer more flexibility than many assume—but it takes vision and leadership to explore the art of the possible. For example, cloud technologies employ automated mechanisms instead of manual efforts. This has transformed the authority to operate (ATO) process by introducing automated security controls, continuous monitoring, and active cyber defense as part of a modern DevSecOps process. The result is the continuous ATO (cATO), a modern authorization process for organizations that want to move faster.

By thoughtfully reexamining regulations in light of emerging technologies, organizations can create space for innovative approaches without compromising compliance.

Process: Measure what matters

Defining success goes beyond mere cost savings to encompass mission impact, service quality, and agility. Agencies should use existing operational metrics, leverage real-time data analytics, and introduce objectives and key results (OKRs) to chart progress against desired outcomes.

But instead of emphasizing extensive measurement frameworks, prioritize outcome-oriented measures that directly relate to action and efficiency. By focusing on metrics that drive real-time improvements and impact, organizations can continually assess and enhance their performance where it matters most, without getting overwhelmed by a cacophony of data noise. This pragmatic approach ensures that measurement is a tool for action rather than an end in itself, allowing agencies to make informed decisions that lead to tangible results.

Technology: Invest in platforms and cloud solutions

Investments in cloud technologies and modern platforms are crucial for meeting efficiency objectives. These platforms provide the infrastructure for seamless data integration, real-time analytics, and enhanced collaboration, driving significant efficiencies—such as the 86% reduction in processing time we helped the Department of Commerce achieve through the modernization of a legacy correspondence case management solution.

It’s currently estimated that the federal government spends about 80% of its $100 billion annual IT budget on maintaining legacy systems. By leveraging advanced technology platforms, agencies can begin to chip away at these costs and reduce long-term expenditures while simultaneously creating opportunities for transformative service delivery.

Efficiency has long been a federal priority—but today’s leaders have an opportunity to drive it in ways that are smarter, more sustainable, and better aligned with mission success. The key is not just adopting new technologies, but ensuring they are implemented in a way that creates lasting impact. Our proven track record across federal agencies—modernizing legacy systems, enhancing data analytics, and developing, delivering, and scaling AI solutions—reflects our commitment to helping government clients drive efficiency and achieve their mission objectives.