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Mar 06 2025
Artificial Intelligence

What AI Czar David Sacks’ Appointment Means for Federal IT Modernization Efforts

Sacks can hit the ground running by implementing a strategy that ensures AI has a connective capacity within and across agencies.

President Trump started his second term by appointing venture capitalist David Sacks the first-ever artificial intelligence and cryptocurrency czar on Jan. 23.

Joining Trump for the executive order signing that created the role, Sacks said the move heralded “the administration’s policy to make America the world capital in artificial intelligence, and to dominate and to lead the world in AI.”

FedTech spoke with AI experts about what that might look like in practice.

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An AI Czar Can Ensure AI-Driven Modernization of Government

Having a designated AI czar could ensure the technology is a driving force in the government’s IT modernization.

“It's very clear that there's a political priority in this administration” in favor of AI, particularly in support of improved efficiency, says Richard Johnstone, executive editor of the Global Government Forum. “Leadership is an important characteristic of making change happen.”

Modernization efforts in 2025 will largely focus on the “speed, interoperability and security” of AI to ensure investments made in this arena deliver real value, says Steve Walters, senior vice president of ServiceNow Public Sector.

Sacks will likely look to leverage AI to accelerate transformation across the government.

“You're going to see agencywide AI governance frameworks that absolutely ensure that there is AI adoption and that it aligns to federal mandates,” Walters says.

Deregulation and Strategy Are Tools in the Global AI Race

The Trump White House shares the previous administration’s desire to see the U.S. lead the global AI race.

“Deregulation will simplify innovation and allow for faster AI development and deployment within federal agencies,” says Tal Elyashiv, author of “Investing in Revolutions: Creating Wealth from Transformational Technology Waves.”

This represents “a potential strategic pivot in the government’s approach” to AI and digital infrastructure, one that will likely see the AI czar promoting the technology as a means “to innovate and enhance governmental efficiency and service delivery,” Elyashiv says.

Other countries — the U.K., Canada and Singapore, for instance — have taken concrete steps to spell out their AI strategies.

“A lot of governments are looking to make progress here,” Johnstone says.

RELATED: Federal CDOs want clarity around their AI responsibilities.

Sacks could likewise drive momentum by putting together a strategy that ensures AI has a connective capacity within and across agencies. In the corporate world, human resources, operations and finance functions all need to work in unison.

“Government needs to put AI to work by connecting all of these separate systems and silos to accelerate mission outcomes,” Walters says.

“AI is only as good as the platform that it's on and whether it can connect to all four corners of an enterprise,” he says. “When you can connect people, systems, data and organizations, then you can really use AI as a strategic tool.”

Flexibility Is Key for Agencies Implementing AI Capabilities

Agency IT leaders can take steps now to integrate AI in support of both efficiency and improved mission outcomes, as long as they allow for flexibility.

“AI is changing very quickly,” Johnstone says. Agencies need an approach “that is as flexible as possible so that you don't get caught with a technology that quickly ends up out of date.”

UP NEXT: Agencies need a method to fight the AI “octopus.”

Process automation, predictive analytics and natural language processing supporting chatbots and virtual assistants are low-hanging fruit in terms of capabilities agencies can readily adopt, Elyashiv says.

Agencies should look for AI applications that can be implemented in six-week sprints, Walters says. ServiceNow’s Government Transformation Suite empowers the use of agentic AI capabilities to increase visibility and drive efficiencies.

Agentic AI helps agencies “get quick insights into true program costs,” Walters says.

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