Shutterstock
Modernization is not achieved through tools alone. It requires a deliberate combination of technology, governance, workforce enablement and procurement pathways that allow agencies to move at the pace their missions demand. Increasingly, government leaders are learning that success with AI is less about experimentation and more about execution.
MOVING BEYOND AI PILOTS
Across government, AI adoption is shifting from limited pilots to large-scale operational deployments with measurable results. The most successful initiatives focus on applying AI to high-volume, rules-driven work — areas where even modest efficiency gains can translate into meaningful impact.
At the federal level, agencies responsible for revenue and financial administration are leveraging advanced optical character recognition (OCR) and AI-driven document processing to modernize decades-old, paper-intensive workflows. In one such implementation, a federal agency is using OCR combined with machine learning models to digitize and classify millions of tax returns annually.
These technologies extract structured data from handwritten and scanned forms, validate accuracy, detect anomalies, and route information into downstream systems. The result has been a significant reduction in manual data entry, improved processing speed during peak filing periods and stronger data accuracy — while operating within strict security, privacy and compliance requirements.
At the county level, the same principle is being applied to policy-heavy human services environments. In a recent engagement, a county implemented an employee-facing AI policy chatbot to reduce the time staff spent searching and interpreting complex eligibility manuals. Even under conservative planning assumptions, the solution delivered measurable reductions in policy research time, translating directly into recovered workforce capacity without increasing head count — and producing an estimated return of approximately 10 times the initial investment.
Together, these examples highlight a consistent modernization pattern. Whether digitizing millions of documents at the federal level or streamlining policy access at the county level, AI delivers the greatest value when it is embedded into everyday operational workflows — moving agencies decisively from pilots to production.
MODERNIZATION REQUIRES AN INTEGRATED APPROACH
AI alone is not a modernization strategy. To achieve sustained impact, agencies must balance multiple priorities simultaneously:
- Cloud and digital modernization
- Cybersecurity and risk management
- Data governance and compliance
- Workforce enablement and change management
- Legacy system sustainment alongside innovation
Fragmented vendors, disconnected contracts and siloed initiatives introduce risk and slow progress. Successful agencies pursue integrated approaches that align technology, people and procurement under a unified execution model.
A PARTNER BUILT FOR PUBLIC-SECTOR COMPLEXITY
For almost three decades, 22nd Century Technologies has supported federal, state and local governments with an execution-focused approach to modernization.
With approximately 7,000 employees operating across all 50 U.S. states, 22nd Century Technologies brings both national scale and local delivery capability to its government clients.
Key capability areas include:
- AI and Data Platforms: Responsible AI, analytics, automation and governed knowledge solutions
- Cloud and Digital Transformation: Application modernization, hybrid environments and scalable digital platforms
- Cybersecurity: Identity management, zero-trust architectures, vulnerability management and compliance-driven security programs
- IT Infrastructure and Managed Services: Enterprise IT operations, service desks and end-user support
- Workforce Solutions: Program-aligned workforce support, surge capacity and long-term operational teams
PROCUREMENT THAT MATCHES THE PACE OF MODERNIZATION
Even the strongest modernization strategy can stall if procurement becomes a bottleneck. State and local agencies increasingly rely on cooperative purchasing vehicles to accelerate acquisition while maintaining compliance and transparency.
Several public entities in more than 15 states have been taking advantage of the availability of 22nd Century’s broad portfolio of cooperative and local purchasing contracts, including:
- OMNIA Partners
- NASPO ValuePoint
- Sourcewell
- State-specific term contracts
- Regional and local cooperative purchasing agreements
In total, 22nd Century holds and supports more than 450 active government contracts nationwide, enabling agencies to procure AI, cloud, cybersecurity and workforce solutions efficiently without lengthy standalone RFP processes.
FROM STRATEGY TO SUSTAINED IMPACT
Modernization is not a single project. It is a continuous process that requires the right mix of technology, governance, people and procurement.
By focusing on responsible AI adoption, integrating modernization capabilities and simplifying procurement pathways, government agencies can move beyond pilots and into production — delivering measurable improvements in efficiency, security and service delivery.
The most successful modernization efforts are not defined by headlines or hype, but by their ability to quietly improve how government works every day, behind the scenes, in service of the public.
About the Author
Reddy Bollineni leads State and Local practice at 22nd Century Technologies. They are a nationwide systems integrator and managed services provider supporting federal, state and local governments across AI, data, cloud, cybersecurity, digital transformation and workforce solutions. With approximately 7,000 employees across all 50 U.S. states and more than 450 active government contracts, the company partners with public-sector agencies to execute modernization initiatives that are secure and scalable while saving taxpayers’ dollars.
