America’s AI Action Plan and Executive Order 14278 will impact the future of state and local government customer experience (CX) initiatives
The way government interacts with the public is about to change and fast. The President’s AI Action Plan and Executive Order 14278 aren’t just about technology. They’re about reshaping how services are delivered. They influence how residents engage. Additionally, they focus on building public trust.
For state and local government leaders focused on customer experience (CX), these policies create both a challenge and an opportunity. Leaders must adapt now. Otherwise, they risk falling behind.
The AI Infrastructure Push Will Raise Expectations
The federal government is investing more in AI infrastructure, like new data centers, faster grids, and high-security networks. As this happens, residents will expect government services to offer the same level of speed, convenience, and personalization. This level is already provided by the private sector.
If Amazon can give instant order updates, why should renewing a permit take days or weeks? Your bank can process transactions in seconds. Why should applying for benefits take so long?
Impact on CX:
- Higher standards for service delivery speed
- Pressure to offer real-time updates and self-service options
- Increased demand for secure, mobile-friendly digital portals
Workforce Transformation Will Redefine Service Channels
The plan’s focus on training a skilled AI workforce includes apprenticeships, Career and Technical Education (CTE) modernization, and employer-led training. As a result, many frontline and back-office roles will be reshaped by AI tools.
Contact centers, permitting offices, and inspection teams see AI handling routine inquiries. It manages data lookups and document processing. This would free staff for higher-value, human-centered interactions.
Impact on CX:
- Staff will need AI literacy training to use tools effectively
- Role redesign will focus human staff on empathy, judgment, and complex problem-solving
- Service channels will shift toward AI-assisted, 24/7 self-service while keeping human help available for complex needs
Funding Will Favor Agencies That Can Show CX Readiness
Federal infrastructure and workforce funding will increasingly go to projects that show they can deliver measurable results. These include projects that offer better service outcomes for residents.
Agencies that can tie investments to customer experience metrics will have an advantage. These metrics include reduced wait times, improved satisfaction scores, or faster case resolution.
Impact on CX:
- Stronger alignment between CX performance metrics and funding applications
- Need to collect and analyze customer feedback in real time
- Greater emphasis on public reporting of service outcomes to build trust
Data Integration Will Be Key to a Seamless Experience
AI systems depend on high-quality, connected datasets. Agencies need to break down silos and share data across departments. This approach will offer faster, more personalized service.
Imagine a single resident profile. It allows an agency to instantly see the status of a permit application, utility payment, and advantage claim. The resident is not asked to re-enter the same information three times.
Impact on CX:
- Integrated digital service platforms will become the norm
- Privacy and security protections will be more visible and important to public trust
- Residents will expect “one front door” government services across departments
The Trust Factor Will Make or Break AI Adoption
The AI Action Plan makes it clear: systems must be trustworthy, bias-free, and secure. For CX leaders, that means communicating openly with residents about how AI is used. They should explain what data it collects and how it benefits them.
If residents feel AI makes services less personal or less fair, trust and adoption will suffer.
Impact on CX:
- Agencies will need transparent AI policies residents can understand
- CX staff will play a role in educating the public on how AI improves service
- Public feedback loops will be essential to refine AI-enabled services
Bottom Line for CX Leaders
The federal AI strategy is not a distant, abstract plan. It’s a near-term shift. This shift will directly affect how your agency delivers services.
If you lead a CX initiative in state or local government, start preparing now by:
- Building AI literacy across your team
- Auditing service channels for automation opportunities
- Integrating CX metrics into every funding proposal
- Investing in secure, connected data systems
- Communicating openly with the public about AI use
Done right, AI won’t replace the human touch in government. It will amplify it. This allows staff to focus on what matters most: solving problems, building trust, and making every interaction count.

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