Federal Workforce Gaps Block AI Adoption, Survey Finds
Federal leaders overwhelmingly see artificial intelligence as essential to modernizing their agencies, but they lack the skilled workers to make it happen. An Ernst & Young survey found that 88% of federal decisionmakers call AI a "critical tool" for efficiency - yet half of all AI projects remain stuck in pilot or planning stages.
Workforce shortages emerged as the single biggest barrier to progress. Forty-four percent of surveyed agency leaders cited gaps in skilled labor as a major obstacle to modernization, according to the survey shared exclusively with Nextgov/FCW.
Budget constraints, outdated technology infrastructure, slow procurement processes, and cybersecurity concerns also ranked high among obstacles. But the human capital problem stands apart: agencies cannot implement the tools they want without people who know how to use them.
The Upskilling Push
Federal leaders are responding to the shortage. Ninety-five percent said they are focused on upskilling current employees to build a tech-fluent workforce.
The challenge runs deeper than hiring. Respondents noted that modernization approaches vary widely across federal agencies. Forty-five percent take an incremental approach, adding new features or fixing bugs in existing systems. Another 41% pursue sweeping overhauls of their entire technology foundation.
This fragmented strategy slows progress. Ninety-six percent of federal leaders want their agencies to streamline internal processes and strengthen cybersecurity before rolling out new technologies.
Where Agencies Want to Invest
When asked about priorities for improving efficiency, 44% of respondents pointed to enhanced cybersecurity infrastructure. Forty-three percent each cited AI, machine learning, and automation as key, and new data systems as equally important.
Efficiency remains the top goal across federal agencies for fiscal 2026. Leaders see technology investment and employee upskilling as the primary levers to achieve it.
The Trump administration launched the U.S. Tech Force program in 2025 to recruit temporary workers from major technology companies for two-year stints in government - one attempt to address the skills gap directly.
For government professionals focused on modernization, the message is clear: AI capability depends first on building the people who can deploy it. Learn more about AI for Government and explore resources like the AI Learning Path for CHROs to help close the workforce gap in your agency.
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