CBIZ
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March 13, 2025

ChatGPT Gov: What Public Sector Leaders Need to Know Now

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To date, data security concerns and compliance requirements have tempered the public sector’s adoption of artificial intelligence (AI) technology. Still, even with a more measured approach compared to the private sector, federal agencies more than doubled their AI use cases in 2024. Now, the January 2025 introduction of ChatGPT Gov from OpenAI sets the stage for a rapid acceleration in AI adoption across federal, state and local government entities.

Purpose-built for the public sector, ChatGPT Gov removes many of the barriers that have limited AI’s use in the industry. The tailored solution enables government agencies to access generative AI tools in secure, government-approved cloud environments to enhance efficiency, decision-making and service delivery. While it streamlines the AI integration process for government agencies, optimization of the technology will require public sector leaders to strike a careful balance between innovation and responsibility.

What makes ChatGPT GOV different?

ChatGPT Gov’s fundamental difference is that it’s not software-as-a-service (SaaS) based. Governmental agencies license the code from OpenAI and contain the deployment within their existing, secure environments. The approach will significantly expedite the security and compliance work required to authorize the use of AI for sensitive, non-publicly available data.

Through this secure self-hosting, public sector entities gain access to OpenAI’s latest large language model (LLM), including text interpretation and summarization, data processing and analysis, and coding assistance. Government agencies can also create custom chatbots to facilitate internal processes and tasks.

Agency IT teams manage user access, set permissions for custom GPTs, and enforce single sign-on protocols to ensure that ChatGPT Gov use meets government compliance, security and regulatory requirements.

What are the primary application opportunities for ChatGPT Gov?

AI’s potential in the public sector is essentially limitless, with the initial focus in three primary areas:

1. Efficiency & Productivity: By automating processes and routine tasks, AI can reduce costs, free employees for other work and reduce staffing needs over time. In a ChatGPT Gov pilot program, public sector workers saved an average of 105 minutes per day on routine tasks.

2. Research & Analysis: AI can be leveraged to quickly digest and summarize information and integrate and analyze complex data sets. Serving as a research assistant, it can also spot data patterns, generate insights and suggest next steps.

3. Service Delivery: Government agencies are also expected to apply AI to enhance a wide range of customer service interactions. For example, AI chatbots can handle customer inquiries, translate information into multiple languages and guide people through administrative processes. Generative AI can also streamline predictive modeling to forecast trends, anticipate changing needs and allocate resources.

What risks do public sector entities need to consider when implementing AI?

As ChatGPT Gov streamlines the process of leveraging AI for government entities, the risk management landscape remains challenging. When implementing new AI applications, whether through ChapGPT Gov or SaaS vendors, the first considerations should be security and trustworthiness.

In 2024, the National Institute of Standards and Technology (NIST) released an AI Risk Management Framework to help organizations recognize and manage risks through structured processes. It also provides guidance on how to operationalize responsible AI.

Mitigating data privacy, cybersecurity, bias and compliance risks is complex and ever-changing. Governmental entities must consider regulatory requirements, ethics and controls when implementing and managing AI use. Developing an AI strategy and roadmap for deployment is critical for optimizing the benefits and avoiding risk-related pitfalls.

The dedicated public sector and AI experts at CBIZ can help you assess AI applications, identify operational implications, educate your workforce and mitigate risk. Connect with a member of our team and gain access to more resources here.

This article includes input from John Verry, Managing Director of CBIZ Cybersecurity, and Rob McGillen, Chief Innovation Officer of CBIZ Financial Services.

 

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