Every day, people write that artificial intelligence has the potential to revolutionize government services, making them more efficient, more responsive, and more people-centric. And on March 28, the Office of Management and Budget released final guidelines for the use of AI by government agencies (M-24-10). After spending extensive time at the highest levels of the legislative and executive branches of government and working with governments around the world on how to effectively use technology, a new memo from the Office of Management and Budget teaches how to improve government outcomes. It is clear that there is a significant lack of guidelines for using AI to
AI has become a strategic focus for both government and industry. Strategic initiatives in government focused on compliance have typically become reporting activities that rarely improve agency outcomes. Governance is a critical component of any strategy, but success with AI requires clear objectives and measurable outcome goals.
To be fair to OMB, it's hard to launch a strategy in the fourth year of an administration. As one of its first actions, the next administration should take a strategic approach to AI in government agencies, emphasizing clear goals, measurable outcomes, and the “know your customer” approach that has proven successful in the business world.
Citizens will benefit most from government AI initiatives tied to strategic needs and opportunities. For government agencies, a widely understood vision and measurable goals are as important as the governance, risk, and compliance requirements established by the Office of Management and Budget. Based on what we know about agency AI initiatives submitted to the White House last year, there are approximately 1,000 AI projects underway in the government. These projects range from classic algorithmic AI (also known as GOFAI) to robotic process automation (RPA) to neural network-generated AI tools and chatbots. Following OMB's guidance, billions of dollars should not be spent on AI projects that are only interesting from a research perspective. Such dreamlike approaches have rarely succeeded in improving government. Rather, if you are putting a lot of effort into an AI project, you want a return on investment that is tied to the government's biggest strategic needs and chronic problems.
Anyone who has watched a business show or tracked technology stocks in the past nine months has noticed that AI is becoming indispensable for businesses. One approach that is gaining traction among companies is the use of AI in customer relationship management (CRM) to understand and support customer needs. For example, consider companies that offer a variety of products and services, such as Amazon or Facebook Marketplace. These companies recognize you as a customer with unique needs and customize their offers to meet those needs. Moreover, interactions are simplified and you rarely have to re-enter data.
Governments can increase efficiency, effectiveness, and responsiveness by using this “know your customer” approach.
For example, AI tools can predict when participants are likely to need to recertify to receive benefits or would benefit from other support services, and proactively provide relevant information and assistance.
Similarly, as the Pandemic Analysis Center of Excellence has documented, this approach can protect beneficiaries and taxpayers from fraud, waste, and abuse.
By analyzing participant feedback and complaint patterns, AI algorithms can identify areas where programs fall short and suggest targeted interventions to improve outcomes. For example, if a program receives negative feedback or fails to meet performance goals, AI can uncover the root cause of the problem and suggest solutions to increase the program's effectiveness. While this can improve response times, prevent fraud, improve satisfaction, and ultimately make program operations more efficient, it may only produce incremental change.
During my time on Capitol Hill and at OMB, I learned that substantive improvements require significant programmatic change. So if businesses can use AI to “know their customer” and deliver efficient, integrated experiences across multiple service and product providers, why shouldn’t government apply the same approach to address key problems and government-wide strategic needs?
The insights of Professor Henry Mintzberg, author of The Rise and Fall of Strategic Planning, offer a useful approach to strategic thinking about AI. Mintzberg wrote that strategy needs to be holistic, addressing an organization's culture, structure, and processes. He saw strategy as a way of thinking about and learning about challenges and opportunities.
Thus, a planning process that overlays GOFAI, generative AI, and RPA opportunities with existing government strategies, learning agendas, and OMB oversight could encourage agencies to think about AI initiatives in terms of breakthroughs in government performance.
Proven approaches such as the Quick Silver framework, which uses collaborative cross-agency teams led by OMB or the President's Management Council, can greatly assist in transitioning from current AI compliance guidance to a results-driven strategy.
Such an approach will result in a government-wide AI strategy. Agency priorities and interagency goals will incorporate AI-infused concepts (such as know your customer) as key elements to significantly improve customer service and program effectiveness. AI will be integrated into this strategy as a tool to support the achievement of strategic objectives, and AI initiatives will be funded in line with strategic objectives.
The benefit here is that when team members return to their institutions, collaboration generates comprehensive innovation within and outside the institution, as we learned with the Bush administration's e-government efforts. Applying a “Quick Silver” approach creates a common vision and understanding of how AI fits into a holistic approach, improving performance and service delivery across government and eliminating silos. The limitations and risks of the agency-by-agency approach are reduced and current guidance implements the desired controls.
Successful use of AI in government requires more than just a focus on administrative compliance. It requires a vision and approach to achieving strategic value. This is the only way to ensure improved government performance and ensure that guidance does not become just a reporting exercise. Applying AI using commercial “know your customer” concepts to federal programs can streamline processes, clarify which programs are effective and which are not, and ultimately make them more effective and efficient. This may lead to program management. However, to ensure that the benefits are realized without compromising individual rights or societal values, it is essential to have clear goals and a shared vision across government agencies.
Mark Forman is OMB's first administrator of e-government and IT and is currently executive VP of Dynamic Integrated Services.
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