The shift from experimental AI to operational AI is no longer a “future” goal—it is the current reality for government agencies. As Federal, SLED (State, Local, and Education), and civilian agencies face increasing pressure to do more with less, AI agents have emerged as the primary vehicle for delivering measurable Return on Investment (ROI).
According to a recent inaugural survey of 251 senior public sector leaders conducted by Google Cloud and National Research Group, the “agentic shift” is well underway. The data reveals that 55% of public sector leaders have already moved AI agents into production. This isn’t just a pilot phase; 42% of these organizations have deployed more than ten distinct agents to handle complex workflows.
High-Impact Use Cases Driving Public Sector ROI
Agencies are prioritizing AI where the impact on the constituent is most visible and internal efficiency gains are most significant. Based on the Google Public Sector report, the top agentic AI use cases already delivering ROI include:
- Constituent & Customer Service (41% ROI): This is the leading area for ROI, with 59% of agencies deploying agents to improve the constituent experience.
- Internal Productivity & Research (35% ROI): While fifth in overall adoption, this category jumps to second place for ROI, acting as a force multiplier for staff by automating data synthesis.
- Software Development (34% ROI): AI agents are accelerating the development lifecycle, from code generation to technical support.
Doubling Productivity Through Generative AI
The impact on the workforce is profound. 70% of public sector leaders report tangible productivity improvements driven by generative AI. Even more striking, 46% of those reporting improvements state that employee productivity has at least doubled. These gains are most evident in:
- IT Processes and Staff Productivity: 74% improvement.
- Non-IT Processes and Staff Productivity: 60% improvement.
- Faster Time to Insight: 54% improvement.
The Critical Success Factor: Executive Sponsorship
Despite the clear ROI, only 32% of leaders report comprehensive executive sponsorship and support for AI adoption. For AI initiatives to move beyond departmental silos and achieve enterprise-wide success, sustained leadership is mandatory to manage change and break down organizational barriers.
This leadership is also essential for securing future funding; notably, 61% of public sector organizations plan to allocate 50% or more of their future AI budgets specifically to AI agents.
Daston: Your Google Public Sector Partner
Modernizing government infrastructure requires a partner who understands the unique compliance and mission requirements of the public sector.
Daston Corporation leverages these insights from Google Public Sector to help agencies navigate this new era of innovation. Whether you are looking to deploy Gemini for Government—Google’s accredited, secure, and AI-optimized cloud service—or refine your agent prototypes, Daston’s experts ensure your agency’s transition is seamless and optimized for performance.