Federal government is embracing AI, with more than half of U.S. agencies exploring agentic AI or actively planning pilots, according to new research from ServiceNow and Market Connections. The question is no longer whether to act, but how to scale.
Based on interviews with more than 200 technology executives across government, our research makes it clear that when it comes to AI in government, federal agencies are moving from experimentation to mission-critical infrastructure. The building blocks are in place; now comes the harder work.
Momentum is building across government. According to the research, nearly one-third of agencies are exploring AI, another 30% are planning pilots, and 22% are running them now. At the same time, 15% are implementing or deploying agentic AI systems. This figure will keep climbing as confidence and capability grow.
Pilots are relatively easy. Embedding AI across systems, teams, and mission workflows is where transformation happens. Most deployments today are still scoped to a single team with a single use case. Agencies that move beyond that will define what government performance looks like for the future.
AI delivers value when it’s woven into where work actually happens in an organization and is not a side project.
Scaling AI means confronting siloed systems, fragmented data, and disconnected workflows built over decades. These architectures weren’t designed for real-time decision-making or cross-agency execution. They create friction where AI needs to flow freely.
This is where governance matters. Nearly 90% of federal agencies require AI logging and audit trails, according to our research. More than 85% require automated guardrails for the technology. Seventy-seven percent say governance frameworks are essential, but frameworks work only when they’re consistent and applied enterprisewide.
A unified foundation that connects data, workflows, AI, and security is what turns governance policy into practice. Without it, AI merely adds complexity. But with it, agencies can coordinate across departments, apply controls consistently, and act with confidence.
Federal leaders have a clear vision for how AI should operate at scale. Nearly 80% want humans in the loop for high-stakes decisions affecting citizens, public safety, national security, and emergency response. At the same time, 90% support reducing human oversight for lower-risk functions such as routine automation.
That posture isn’t a constraint on AI’s potential; it’s the foundation that makes scaling AI trustworthy.
Government has entered a new phase of AI adoption. Interest in the technology is evident. Pilots are running. Frameworks are taking shape. But what the public sector still needs to do is execute at enterprise scale.
Citizens don't measure transformation by technology roadmaps. They care about disaster relief arriving, permits getting processed, and receiving the information they need.
Government agencies that commit to scaling AI thoughtfully, with strong governance and unified infrastructure, will be best positioned to deliver on their vital missions in a more powerful way than ever before.
Find out how ServiceNow can help you put AI to work for government.
