NASCIO 2025 highlights shift toward measurable modernization

At the recent National Association of State Chief Information Officers annual conference, state IT leaders emphasized that innovation in government is shifting away from large-scale overhauls and toward practical agility and maximizing existing resources. In a new video interview produced by Scoop News Group following the event, Beth Howen, President of State, Local and Education at NTT DATA North America, echoed this, saying that today’s priority is enabling states to adapt quickly and deliver more value with limited budgets.

“It really felt grounded in pragmatic innovation,” says Howen. “State CIOs are past the hype cycle, and the focus is really on sustainability, resilience and measurable impact.”

Another recurring theme across sessions and hallway conversations was financial uncertainty. While some states continue to benefit from post-pandemic revenue surpluses, others are bracing for tightened budgets and declining federal support. “Budget uncertainty is shaping every single conversation,” says Howen. “CIOs are becoming more strategic and more selective. It’s about investing in areas that show a clear ROI and improve citizen services.”

Because citizens increasingly expect a seamless digital government experience, Howen said states are focusing on IT investments that streamline operations and improve service delivery. “Every citizen wants the Amazon-type experience when dealing with government,” she says.

While modernization remains a top priority, Howen said agencies are moving away from costly “rip and replace” strategies by embracing incremental modernization that blends new technologies such as AI, automation and low-code platforms with existing systems. “Creative modernization is about rethinking how we go about change,” she explains. “It’s more about extending the value of what’s already in place and delivering rapid wins while keeping that long-term vision in sight.”

Accessibility also rose to the forefront this year as states prepare for upcoming Department of Justice compliance deadlines in 2026 and 2027. “These deadlines are creating urgency, but they’re also creating opportunity,” Howen says. “It’s not just about compliance; it’s about making digital government truly inclusive for all citizens.”

AI and data governance were another dominant focus. Howen said states are excited about AI’s potential but are moving deliberately to ensure responsible implementation. “States really want to innovate, but they want to make sure they’re doing it safely and transparently,” she says. “Once governance is in place, AI becomes a powerful enabler, helping agencies deliver better outcomes and amplifying the human side of government.”

Across all areas, Howen underscored the growing importance of public-private collaboration. “It’s not about vendors delivering tools,” she says. “It’s about co-creating long-term value for the citizens states serve.”

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This video discussion was produced by Scoop News Group for StateScoop and underwritten by NTT DATA.