State CIOs raise the bar for AI results

Moving AI into production is only part of the challenge for state technology leaders. They must also demonstrate that AI improves government operations and ensure that their data, workforce and security capabilities can keep pace.

That was a central theme at NASCIO’s 2026 annual conference, according to Beth Howen, Executive Managing Director for State, Local, and Education at NTT DATA North America.

“We’ve moved from readiness to results,” Howen said in a video interview produced by Scoop News Group for StateScoop and underwritten by NTT DATA. “The question isn’t whether these technologies are ready; it’s ‘how quickly can we turn them into measurable public value?’”

The 2026 NASCIO State CIO Survey reflects that shift: 82% of states reported that generative AI projects were in production. Meanwhile, 64% of CIOs identified agentic AI as the emerging technology most likely to have the greatest impact over the next two to three years.

For Howen, agentic systems represent a shift “from AI that just answers questions to AI that can act,” raising new questions about where automation belongs and how to control its risks. “We should not automate something simply because we can,” she said.

For example, some processes need to be redesigned before they can be automated effectively. Others require modernized systems or stronger data governance. “The goal isn’t to have the most AI pilots in place; it’s to put AI into production where it can safely create measurable value,” said Howen.

Governance should help states make those decisions and move forward with confidence. Howen said safeguards need to be built into how AI is designed, procured, and operated. “That means innovation with guardrails, not innovation versus guardrails,” she said.

The same focus on outcomes applies to cybersecurity. States with thin staffs cannot simply hire their way out of growing threats, Howen said. Automation, AI-assisted security operations, zero-trust principles and managed services can help extend internal teams’ capacity. “Citizens don’t experience a cyber incident; they experience government not working,” she said.

Technology spending requires similar discipline. Howen urged states to reconsider blanket “cloud first” strategies and assess where workloads belong. “Let’s be honest, not everything belongs in the cloud,” she said.

Howen urged states to make modernization “mission-driven rather than personality-driven,” supported by measurable outcomes and institutional governance.

“Technology strategies survive leadership transitions when they’re tied to something bigger than technology,” she said.

Learn how NTT DATA helps states streamline operations and deliver exceptional constituent experiences.

This article and the video interview were produced by Scoop News Group for StateScoop and underwritten by NTT DATA.