Amidst growing concerns about data privacy and government efficiency, a new report from New America's Open Technology Institute recommends that governments prioritize privacy-boosting technologies like encryption, de-identification, and hashing. Published on March 25, 2025, the report comes as cybersecurity experts highlight potential risks associated with the Trump administration's Department of Government Efficiency (DOGE) having access to sensitive information from federal agencies. Such concerns have been further amplified by recent court challenges.
The report's author, Sydney Saubestre, emphasizes that “privacy enhancing technologies,” or PETs, are essential in safeguarding against unauthorized data access. “Data sharing is really important, but obviously so is privacy,” Saubestre said. “They’re equally important and they’re equally critical, and they shouldn’t necessarily be in opposition to each other.”
Saubestre also highlighted examples of PETs, stating that they include not only encryption but also innovative solutions such as synthetic data, which is created by algorithms to reflect real-world data characteristics without containing actual personal information. The report urges governments to incentivize the development of such technologies by establishing procurement policies, implementing long-term contracts, and providing grants for innovation.
While the report advocates for the widespread use of privacy-centric technology, it has also pointed out that the Trump administration has been working against the grain. In addition to accessing sensitive data, the administration has attempted to cut funding for grant programs that could support the advancement of PETs. Saubestre believes smaller organizations and state governments are better positioned to adopt these recommendations in the current landscape.
“There is an urgent need for public sector stakeholders to prioritize securely using data to drive positive outcomes while upholding the privacy and rights of individuals,” Saubestre asserts.
In another development, state legislators across the United States have begun to explore the integration of artificial intelligence (AI), particularly generative AI, into state agencies as a means of improving service delivery. The automatic demand for technologically adept workers is coinciding with state budget constraints, necessitating innovative solutions. Wisconsin serves as an example of proactive engagement with AI to meet these challenges.
In 2023, Wisconsin Governor Tony Evers signed Executive Order #211, which established the Governor's Task Force on Workforce and Artificial Intelligence. Following this initiative, the task force released its Advisory Action Plan in July 2024, proposing policies on AI implementation across education, government, workforce, and economic development.
Amid this backdrop of progressive AI adoption, the state has initiated a special Speaker's Task Force on Artificial Intelligence aimed at defining AI and exploring its implications within the state. The Governor’s Plan has acknowledged that it is critical to develop best practices for implementing AI ethically and equitably.
The analysis identifies that stakeholders require a more nuanced understanding of AI policies and their responsibilities. It highlights a need for strategic communications to foster public trust around AI technologies.
Another significant recommendation includes showcasing successful examples of AI adoption in the private sector, which could help to shift misperceptions about AI in government operations. Moreover, it emphasizes that AI can address staffing shortages by enhancing the skills of existing workers, thereby allowing state agencies to provide more enhanced services to citizens, even with reduced budgets.
One solution that has gained traction is the concept of Private AI, which enables governments to build their AI capabilities within a private cloud using the existing data center infrastructure, which minimizes the need for new investments and controls costs.
Private AI offers a practical approach for state governments to navigate budgetary constraints without sacrificing the advantages of innovative technology. By leveraging virtualization, AI capacities can be pooled and shared intelligently, curbing both energy consumption and costs.
This method not only maintains the integrity of citizens' data but also allows state agencies to maintain control over their technological environments. Furthermore, the analysts at MultiState caution that while states are contemplating their AI deployment strategies, they must be careful not to implement premature regulations that could stifle innovation in this rapidly evolving landscape.
In conclusion, the integration of privacy-enhancing technologies and the adoption of AI within public sectors create substantial opportunities for both improved efficiencies and protections for citizen data. The need for careful consideration in crafting policies that uphold privacy standards and ethical practices will be critical as these technologies are deployed.
