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Widespread AI Adoption: Over half of public-sector employees use AI daily, with varying availability across state and federal agencies, raising concerns about unregulated use of "shadow AI."
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Procurement Challenges: Low-cost AI tools often escape traditional budget oversight due to small transaction amounts, complicating procurement processes in government.
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Risks of Unapproved Tools: Employees frequently use unauthorized AI tools to circumvent slow purchasing and strict IT rules, leading to potential exposure of sensitive data.
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Integration Issues: AI embedded in everyday software can create confusion about approved tools, increasing the risk of data breaches and compliance challenges.
- Recommendations for Mitigation: Enhance visibility into AI use, streamline procurement processes, establish clear policies, and educate the workforce on permitted AI use to foster innovation while managing risks.