Center for AI & Public Sector Innovation · July 2026
Federal agencies reported 3,611 artificial intelligence use cases in 2025, more than double the year before, with over 1,800 systems already deployed or in pilot. The technology is inside the building; the open question is whether the two-million-person workforce operating it is prepared to command it. This flagship paper surveys the current state of federal adoption under Executive Order 14179 and OMB Memorandum M-25-21, maps which functions automate, which augment, and what skills the government must build or buy, assesses institutional readiness honestly across training, procurement, and governance, and closes with five recommendations for an AI-ready workforce that improves service while shrinking cost, with accountability kept human at every step.