Digital States 2026: AI Moves From Experiment to Infrastructure

Artificial intelligence has moved rapidly from experiment to infrastructure in state government. Across the country, states are putting AI to work in application development, cybersecurity operations centers, benefits administration, procurement and data management. At the same time, technology leaders are navigating shifting federal requirements, persistent cyber threats and pressure to modernize aging systems — often without a corresponding abundance of new staff or money. Those dynamics helped define the Center for Digital Government’s* 2026 Digital States Survey, the biennial assessment of technology practices across state government. Eleven states — Texas, Hawaii, Mississippi, Ohio, Georgia, Connecticut, Utah, Michigan, Nevada, Iowa and Missouri — earned an "A" grade in this year’s survey. The survey shows both how quickly states' technology priorities are changing and how some longstanding concerns are becoming even more urgent. Cybersecurity continues to rank as states’ No. 1 overall priority, followed by collaboration and shared services, AI and machine learning, budget and cost control, and constituent engagement and experience. The workforce picture reinforces those priorities. Eighty-four percent of states said cybersecurity is an area where they need additional staff, while 76 percent pointed to AI modeling. Nearly two-thirds anticipated needing to hire people for application building, integration and modernization,…