GUEST COLUMN.

A combination of conditions, decisions and constraints is altering the public sector HR landscape in 2026. These factors are contributing to foundational shifts driving gradual, yet persistent change at every level of operation.

For many public sector HR teams, the work is growing, but resources remain limited. Staffing shortages are compounded by longer hiring timelines and reduced budgets, and managers are often juggling higher expectations in the same constrained environment. For years, these felt like temporary disruptions. Now, for many state and local agencies, they have become the operating reality.

Recently, our team at NEOGOV released our annual Public Sector HR Trends survey of more than 4,000 public sector professionals and found that agencies are increasingly focused on managing tangible burdens, like staffing, workload, and inefficiency, often at the expense of longer-term initiatives.

These findings show a system under pressure, not because public sector professionals lack awareness or effort, but because the capacity to execute varies – resulting in a gap between intention and what is realistically achievable within current constraints.

The silver lining around this HR cloud is that public sector employees are beginning to find practical ways to relieve some of that pressure.

A turn toward AI

Public sector employees are increasingly turning attention toward technology as a potential source of relief. Among these technologies, AI is beginning to take its place as a time-saving tool in the day-to-day work of public sector professionals.

AI use has seen a modest increase in the past year, with 21.3% of respondents’ agencies now actively using AI in some capacity, according to the report. The most common applications are data analysis, internal communications, external communications and workflow automation. This translates to small gains in efficiency, which can create meaningful relief – allowing employees to work better within the current environment of limited time and increasing operational demands.

Governance is key

While AI as a time-saving tool is important, data demonstrates that it is being introduced into environments that are not yet fully prepared to support it. According to NEOGOV, only 28% of agencies have documented policies governing AI use, and 24% have provided training to employees. This presents larger concerns around compliance, data security, accuracy, and more, which respondents themselves expressed – issues that agencies cannot ignore.

According to Smart Cities Dive, some cities like San Francisco, Austin and Seattle, are already moving in this direction by formalizing AI use policies that establish clear expectations around accountability, transparency and data protection.

For state and local governments, the next step does not need to be a complex or expensive AI strategy. In many cases, progress can begin with basic clarity.

A simple start

Forward-thinking agencies are making meaningful progress by being strategic about where they focus first and building momentum through quick wins. Moving from insight to action requires a clear, practical roadmap – and understanding where to start is the first step.

Agencies can start by defining how AI can and cannot be used. A simple policy can identify approved tools, prohibited uses, data privacy expectations, and who employees should contact with questions. This simple step can reduce confusion and prevent sensitive data from being shared.

Training is also crucial. Because AI is new to so many organizations, employees must understand the limits of AI, how to check outputs for accuracy, when human review is required, and how AI use intersects with existing policies, compliance obligations, and public trust.

Agencies should also focus on specific use cases rather than broad adoption. The most useful starting points are often the areas where employees already feel the greatest burden - summarizing documents, drafting internal communications, analyzing workforce data, or reducing repetitive workflow steps. Starting with defined, lower-risk use cases can help agencies build confidence while learning what works.

AI readiness should be treated as organizational readiness. NEOGOV’s report shows that many agencies are still operating reactively, with limited time for long-term planning and uneven use of data in decision-making. AI will not fix those conditions on its own. It will be most useful in agencies that have clear processes, reliable data, aligned leadership, and the ability to manage change.

A balanced path forward

The public sector workforce will never remain static. Over time, it will continue to evolve in response to shifting expectations, technological advancements, and general labor market dynamics.

Nevertheless, due to persistent resource shortages, efficiency will remain a priority for better service delivery and return on investment. Technology adoption will expand exponentially, bringing both opportunity and complexity.

The agencies that thrive will be those that approach these conditions strategically, starting with small, sustainable changes that compound over time. In this landscape, progress does not always come from large, immediate changes. It may come from sustained adjustments – clarifying priorities, improving alignment, strengthening systems, and creating space for execution where possible.

The contents of this Guest Column are those of the author, and not necessarily Barrett and Greene, Inc

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