The Role of Agentic AI in Federal Operations: Enhancements and Challenges

Federal agencies are increasingly examining agentic AI as a potential tool for enhancing operations. A recent survey among over 200 technology executives within government sectors revealed a strong interest in this technology. Conducted by Market Connections on behalf of ServiceNow, the survey found that 53% of respondents are either exploring or planning pilot programs, while 15% have already implemented or completed integration of agentic AI systems.

Despite growing interest, adoption barriers persist, particularly regarding insufficient oversight policies. Although 77% of federal leaders recognize the need for oversight frameworks, less than a third have implemented these structures. Mike Hurt, Global Vice President of U.S. Public Sector at ServiceNow, highlighted the importance of integrating accountability from the start to realize impactful AI implementation results.

The surge in AI utilization is notable across federal organizations in 2025, even as the federal workforce decreases. The Office of Management and Budget's April inventory showed a more than twofold increase in AI applications, especially within NASA, the departments of Health and Human Services, Veterans Affairs, Justice, and Energy.

Agentic AI, characterized as autonomous systems capable of executing complex objectives with minimal human intervention, offers efficiency and resource optimization. However, readiness to deploy such systems varies; only 20% of agencies have pre-deployment evaluation policies, and a mere 8% have frameworks for incident management. Aaron Heffron, president of Insights and Research at GovExec, expressed concern about the adequacy of the current human and technical infrastructure to support these advancements.

Additionally, challenges exist in transitioning from pilot programs to fully operational systems, particularly concerning data preparation for AI integration. An unnamed IT director stressed the critical nature of data governance in aligning datasets with AI processes. Jon Alboum, Federal Chief Technology Officer at ServiceNow, suggested consolidating data and workflows into a unified environment to enhance AI operational efficiency and oversight.

Nearly 90% of executives emphasize the necessity of consistent oversight, with automated policy checks and audit trails deemed essential. The study highlighted demands for human oversight in high-stakes scenarios, such as national security, underscoring the need for a "human-in-the-loop" approach.

While agencies understand the importance of accountability, procedural measures such as 'kill switch' strategies to manage AI operations remain lacking. This gap between intention and capability poses challenges for federal AI implementations. The report stresses the urgency of establishing governance frameworks to maintain control as AI systems expand, asserting that built-in accountability is now a fundamental requirement for successful AI deployment in federal operations.