Public Sector AI Readiness Report

Public sector AI adoption outpaces governance and visibility

Government, defense, and healthcare sectors are racing to deploy AI to improve efficiency and service delivery. But as adoption accelerates and teams face pressure to innovate and improve mission outcomes, new research reveals public sector organizations are still building the necessary governance frameworks and monitoring practices to use AI responsibly and securely.

Download the report to see where U.S. and U.K. public sector organizations are ahead, where visibility gaps remain, and what IT leaders can do next as AI-driven cyber threats against critical infrastructure increase.

Key Findings

event200

701iM000003DWA2QAO

The public sector AI readiness gap.

40%

of U.S. public-sector respondents report having a formal AI governance framework.

42%

say they monitor AI behavior, despite reporting high confidence in broader observability coverage.

24%

of U.S. public-sector respondents have fully implemented zero trust.

37%

report loosening previously strict security restrictions to allow AI use.

U.S. and U.K. public sector organizations face different pressures to adopt AI

Compare how governance, observability, security, workforce, and agentic AI concerns differ across the two markets.

United States
United Kingdom

Governance
Observability
Security Risk

State of U.S. Public Sector AI

Fewer than half of U.S. public-sector organizations have formal AI governance in place

State and local governments report the largest governance gap.

Chart: Local governments lag on AI governance frameworks

Only 40% of U.S. public-sector respondents say they have a formal AI governance framework in place. Federal civilian agencies lead at 47%, while state and local governments report 19% with an adoption framework for deploying AI securely and responsibly.

State of U.S. Public Sector AI
Fewer than half of U.S. public-sector organizations have formal AI governance in place
State and local governments report the largest governance gap.
Only 40% of U.S. public-sector respondents say they have a formal AI governance framework in place. Federal civilian agencies lead at 47%, while state and local governments report 19% with an adoption framework for deploying AI securely and responsibly.

Compliance
Workforce
Agentic AI

State of U.K. Public Sector AI

Half of U.K. respondents are mostly or fully compliant with Secure by Design

Local governments are the least compliant, which suggests monitoring gaps across their networks.

Secure by Design, a software development framework that prioritizes security “baked in” at the start of the software development lifecycle, provides key guardrails for U.S. and U.K. organizations across the software supply chain.

In the U.K., Secure by Design informs key compliance requirements and statutory frameworks to ensure sensitive data is protected.

Half of U.K. public sector respondents say they are mostly or fully compliant with Secure by Design and they’re also more likely to say they’re hesitant or less aggressive on AI adoption, suggesting a more methodical, security-first mindset to AI.

U.K. respondents are also slightly less likely to say they’ve seen an increase in AI-driven cyber threats compared to the U.S.

State of U.K. Public Sector AI
Half of U.K. respondents are mostly or fully compliant with Secure by Design
Local governments are the least compliant, which suggests monitoring gaps across their networks.
Secure by Design, a software development framework that prioritizes security “baked in” at the start of the software development lifecycle, provides key guardrails for U.S. and U.K. organizations across the software supply chain.

In the U.K., Secure by Design informs key compliance requirements and statutory frameworks to ensure sensitive data is protected.

Half of U.K. public sector respondents say they are mostly or fully compliant with Secure by Design and they’re also more likely to say they’re hesitant or less aggressive on AI adoption, suggesting a more methodical, security-first mindset to AI.

U.K. respondents are also slightly less likely to say they’ve seen an increase in AI-driven cyber threats compared to the U.S.

2026 State of Public Sector Report Web Image

October 21, 2026

Learn More at DC World Tour

Join us in Reston, VA to learn more about the state of AI readiness. Register to hear how federal government and defense leaders can strengthen their IT infrastructure and data protocols to maximize AI while keeping missions safe and secure.

Save Your Seat

Turn AI readiness insights into stronger IT visibility

Meet mission-critical visibility requirements without compromising your security posture or compliance obligations. With SolarWinds^® Observability Self-Hosted, you can monitor and observe your entire IT environment on your terms.

See How It Fits Your Mission Talk to a Government Specialist

Public sector AI adoption outpaces governance and visibility

The public sector AI readiness gap.

U.S. and U.K. public sector organizations face different pressures to adopt AI

Fewer than half of U.S. public-sector organizations have formal AI governance in place

AI adoption is creating new visibility gaps across public-sector networks

AI adoption is testing existing security controls

Fewer than half of U.S. public-sector organizations have formal AI governance in place

AI adoption is creating new visibility gaps across public-sector networks

AI adoption is testing existing security controls

Half of U.K. respondents are mostly or fully compliant with Secure by Design

The U.K.’s AI strategy is a training plan

U.K. less confident about ability to monitor AI agents

Half of U.K. respondents are mostly or fully compliant with Secure by Design

The U.K.’s AI strategy is a training plan

U.K. less confident about ability to monitor AI agents

Learn More at DC World Tour

Turn AI readiness insights into stronger IT visibility

Fewer than half of U.S. public-sector organizations have formal AI governance in place

AI adoption is creating new visibility gaps across public-sector networks

AI adoption is testing existing security controls

Fewer than half of U.S. public-sector organizations have formal AI governance in place

AI adoption is creating new visibility gaps across public-sector networks

AI adoption is testing existing security controls

Half of U.K. respondents are mostly or fully compliant with Secure by Design

The U.K.’s AI strategy is a training plan

U.K. less confident about ability to monitor AI agents

Half of U.K. respondents are mostly or fully compliant with Secure by Design

The U.K.’s AI strategy is a training plan

U.K. less confident about ability to monitor AI agents