Public Sector AI Use Surges, Raising Data Security Concerns
The use of AI tools by public-sector employees is surging, with 51% employing one daily. However, this trend raises concerns about data security and governance.
The increasing availability of powerful, low-cost AI tools has led employees to bypass traditional procurement processes. Some states allow purchases under USD5,000 without approval, enabling micro transactions for AI tools. This 'shadow AI' use exposes sensitive data to unvetted third-party services, as embedded generative AI in everyday software can leak information.
Unapproved AI tools lack monitoring and reporting features, making data breaches harder to track and manage. Moreover, employees use AI tools to circumvent strict IT rules and slow purchasing processes, leading to governance problems such as noncompliance with regulations and ethics and bias concerns.
The US General Services Administration (GSA) facilitates purchases and contracts for AI systems from major providers like Meta, Amazon Web Services, Microsoft, Google, OpenAI, and xAI. This reflects the federal government's strategic expansion of AI tools integration across agencies. However, adoption varies, with 59% of state and local respondents indicating availability compared to 72% at the federal level.
The increasing use of AI tools by public-sector employees, while offering benefits, also presents significant challenges. To mitigate risks, governments must strengthen governance, improve monitoring, and ensure compliance with regulations. Addressing these issues will be crucial for protecting sensitive data and maintaining public trust in government use of AI.
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