Federal Agencies Double Down on Generative AI as Usage Soars and Challenges Mount

Federal agencies increased generative AI use from 32 to 282 cases between 2023 and 2024, improving communication and monitoring. Challenges include data privacy and resource needs.

Categorized in: AI News Government
Published on: Jul 31, 2025
Federal Agencies Double Down on Generative AI as Usage Soars and Challenges Mount

GAO Study Reveals Increased Generative AI Use by Federal Agencies

July 30, 2025

Growth in Generative AI Adoption Across Agencies

The Government Accountability Office (GAO) released a report highlighting a marked increase in generative artificial intelligence (AI) use among federal agencies from 2023 to 2024. According to the report, AI instances across 11 agencies rose from 571 to 1,110, while generative AI usage surged from 32 to 282 cases.

The report, Artificial Intelligence: Generative AI Use and Management at Federal Agencies, outlines several practical applications of generative AI. Agencies are leveraging this technology to improve written communication, accelerate access to information, and monitor program statuses more efficiently.

Examples of Generative AI in Federal Operations

  • The Department of Veterans Affairs has introduced automation in medical imaging to enhance diagnostic services for veterans.
  • The Department of Health and Human Services utilizes generative AI to collect and analyze data related to poliovirus containment efforts, focusing on regions declared polio-free.

Overall, agencies see generative AI as a tool to increase productivity, support internal workflows, and streamline service delivery.

Challenges in Implementing Generative AI

Despite its benefits, agencies face hurdles in adopting generative AI. These include compliance with federal policies on data privacy, securing sufficient technical resources and funding, and establishing clear use policies.

To manage these challenges, many agencies are crafting internal guidelines based on existing AI frameworks and federal guidance updates issued in early 2025.

The GAO also points out risks tied to generative AI, such as potential threats to national security, environmental concerns, and the possibility of misinformation spreading.

Federal employees interested in expanding their AI skills and staying current with best practices may find relevant training resources at Complete AI Training.


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