From Smart Cities to State Services: The Next Wave of AI-Driven Government Modernization

Lenovo’s Anthony Pichardo offers commentary on the next wave of AI-driven government modernization. This article originally appeared in Insight Jam, an enterprise IT community that enables human conversation on AI.

As governments confront rising cybersecurity threats, complex data ecosystems and growing citizen expectations, the path forward is clear but steep. According to the latest OMB FISMA release, agencies reported 32,211 cybersecurity incidents to the U.S. Computer Emergency Readiness Team (US-CERT) in FY 2023. Agencies at every level are under pressure to deliver more reliable, secure and responsive public services, often with fewer resources and dated infrastructure. The result is a widening gap that citizens are experiencing firsthand.

AI is quickly propelling the next wave of public-sector transformation at an astronomical pace, spanning everything from smarter cities to statewide digital ecosystems capable of delivering a higher level of service. Machine learning, edge computing, generative AI and automation are enabling governments to anticipate needs, streamline services and strengthen resiliency in ways that were unimaginable a decade ago.

Companies are helping agencies bridge this widening gap, where rising expectations collide with aging infrastructure, limited budgets and the need for more advanced public-sector services. Through secure, scalable AI and infrastructure solutions, Lenovo’s solutions enable governments to convert raw data into actionable intelligence. These capabilities enhance emergency management, optimize traffic flow, detect anomalies in utility systems and support mission-critical decision-making. Modern AI infrastructure is quickly becoming indispensable.

The question is not whether governments will embrace AI, but how they can do so thoughtfully and securely amid constrained budgets, aging infrastructure and rising public expectations.

Urban Intelligence: The Next Frontier

The evolution of smart cities marked the first wave of AI in the public sector. Municipalities connected critical systems through real-time data and predictive insights, enabling more responsive public services. US cities such as Kansas City, MO and San Diego, CA have been early leaders, deploying intelligent streetlights, real-time transit monitoring and connected public-safety systems to improve city operations.   These advances illustrate how early smart-city investments created the blueprint for today’s AI-enabled public services.

A far more ambitious wave is now underway. It extends beyond city limits and integrates AI throughout statewide intelligent infrastructure designed to support resilience, coordination and large-scale modernization. Lenovo’s work through global initiatives such as the FIFA Lenovo Cities program demonstrates how data-driven, AI-enabled infrastructure can scale to meet these broader public-sector needs. Government leaders are exploring AI solutions to improve wildfire detection, water management, power grid stability, health and human services operations and broadband expansion. McKinsey estimates that AI could save governments up to $1 trillion each year in operational efficiencies and service delivery improvements by 2030 indicating that the economic impact could be significant.

Research from Johns Hopkins University’s Center for Government Excellence revealed that more than 71% of major U.S. cities are exploring, testing or implementing the use of generative AI to enhance service delivery, workforce productivity and resident engagement. Momentum in the U.S. continues to accelerate and trailblazing a new way of blending AI into modern city planning.

Building this new generation of infrastructure requires computing resources that are both powerful and distributed. Lenovo’s AI-ready solutions, place compute power closer to where data is generated, whether at traffic intersections, utility substations, health care facilities or disaster recovery zones. This approach reduces latency, strengthens situational awareness and supports faster decision-making. Centralized oversight further protects sensitive citizen data through Lenovo’s secure-by-design architectures and strong identity management practices.

Fusing edge computing with scalable data infrastructure enables governments to unlock real-time intelligence while maintaining the security, transparency and accountability essential to public service.

Digital Trust and the Human Layer of AI

Modernization must extend beyond automation. It must focus on demonstrating trustworthiness and ensuring that AI systems reflect the values and priorities of the communities they serve.

Government decisions impact people at all stages of life and include support for basic needs, like applying for benefits, navigating public health guidance, responding to emergencies and accessing education or employment resources. As AI plays a greater role in these processes, citizens need to trust that systems are secure, equitable and accountable.

Optimism is growing, but caution remains. A 2024 Pew Research Center survey found that 72% of Americans believe AI can improve government efficiency, yet only 38% trust it to make fair or unbiased decisions. This trust gap highlights the need for responsible innovation to guide every public-sector AI strategy.

Lenovo’s approach prioritizes the human layer of AI, ensuring technology is developed and deployed in ways that support people and protect their rights. Lenovo’s Responsible AI framework emphasizes fairness, transparency, explainability and accountability across the AI lifecycle. Privacy-enhancing capabilities, including confidential computing and federated learning, help agencies safeguard sensitive data while delivering secure, inclusive and insight-driven public services.

Trust is strengthened through transparency. Clear communication on how AI models operate, appropriate guardrails on their use and ongoing oversight ensure they support public interests rather than compromise them. When communities understand how AI contributes to safety, efficiency and service improvements, they are more likely to support its adoption and participate in digital governance.

The Human Future of Machine Intelligence

The next chapter of government modernization will not be written in code alone. People, data and intelligent infrastructure will shape this new era together. As agencies adopt AI to strengthen safety, sustainability and service delivery, they must continue to uphold the human values that define effective governance: fairness, accountability and empathy. Technology should elevate these principles, not replace them.

Automated processes, real-time insights and accelerated decision workflows give government employees more time to focus on strategic responsibilities and meaningful engagement with the communities they support. With more actionable data at their fingertips, public servants can better inform and collaborate with local communities. A public-sector workforce augmented by AI is more capable and better positioned to meet the rising expectations of a digital society.

If governments unite digital intelligence with human intent, they can create communities that are not only smarter but also more resilient, equitable and responsive. The evolution from smart cities to AI-enabled state systems is still in its early stages. With secure, responsible and citizen-centered approaches, governments can build a future in which technology strengthens public trust and expands opportunity for all.