7 Critical Lessons from a Year of AI Implementation in Federal Government

Bogoodski

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Building generative artificial intelligence systems in government isn’t just about the technology — it’s about creating sustainable, compliant solutions that deliver real value. After a year of developing generative AI systems within our federal agency, we’ve gathered key insights that can help other federal AI enablement offices succeed in their implementations.

Image generated using DALL·E by OpenAI (2025).

1. Balance Platform Autonomy with Service Options

When implementing AI solutions, consider both operational control and service capabilities. For our chatbot development, we chose Azure AI because it offers direct platform control without requiring contractor support for each action. This autonomy accelerated our development cycles for RAG-based chatbots. Meanwhile, we continue to offer AWS services like SageMaker and BedRock to our users for their specific AI needs, providing a flexible range of options for different use cases.

2. Bridge the Gap Between Prototype and Production

While building AI prototypes is relatively straightforward, transitioning to production reveals hidden complexities. Take our chatbot deployments: Azure AI’s generated interfaces worked great for prototypes, but production deployment required:

  • Accessibility compliance reviews
  • Code security scans
  • Domain restructuring
  • Security documentation
  • Brand compliance updates
  • Display of Rules of System Use

Early identification of these requirements can prevent costly delays.

3. Establish Clear Cost Models

Transparency in AI service costs is crucial for sustainable adoption. We’ve implemented several successful approaches:

  • Development costs covered by our team’s budget
  • Production environments funded by owning teams
  • Chargeback models for specific use cases

Pro tip: Set up cost telemetry early and develop accurate estimation methods to help teams evaluate project feasibility before investing significant time in initiatives they may not be able to fund.

4. Build Robust Governance from Day One

Strong governance isn’t optional — it’s essential for responsible AI deployment. However, the key is striking the right balance between necessary controls and operational efficiency. We’ve crafted a framework that ensures proper oversight while maintaining the agility needed to deliver mission impact quickly:

  • Enterprise-level AI Governance Board that reviews all potential AI use cases through streamlined processes
  • Centralized AI Use Case inventory for tracking and reference, enabling quick validation of new proposals
  • Documented development environments with pre-approved configurations
  • Efficient code review processes that maintain rigor without creating bottlenecks
  • Prompt engineering validation integrated into the development workflow
  • Clear vulnerability reporting channels with defined response timelines
  • Regular safety assessments aligned with deployment schedules

We leverage enterprise platforms like Palantir Foundry to standardize and automate these controls, from managing development environments to streamlining code reviews and prompt validation.

The Governance Board plays a crucial role in eliminating redundancy and ensuring each AI implementation is suitable for its intended purpose, while maintaining a rapid review cycle that keeps projects moving forward. Our AI Use Case inventory serves as a valuable resource for practitioners across the agency to learn from existing implementations and identify potential collaboration opportunities, accelerating the path to production.

By thoughtfully designing these controls, we’ve created a governance structure that protects the agency’s interests while enabling teams to move quickly from concept to implementation. This balanced approach has been key to successfully deploying AI solutions that positively impact our mission.

5. Stay Ahead of AI Research

Maintaining awareness of AI developments isn’t just academic — it’s practical risk management. For example, our early understanding of LLM alignment challenges helped us implement preventive measures before they became issues, maintaining user confidence in our systems.

Just as important as staying current is implementing rigorous evaluation frameworks. For traditional machine learning applications, we focus on maximizing accuracy, precision, and recall metrics. For LLM implementations, we’ve established dedicated testing environments to benchmark different models against specific use cases, ensuring we select the most appropriate model for each application. This empirical approach to model selection has proven crucial for delivering optimal results while managing costs effectively.

6. Create an AI Community of Practice

Success in AI implementation requires more than technical expertise — it demands organizational buy-in and knowledge sharing. We established an Advanced Analytics Center for Enablement that:

  • Connects field analysts with headquarters leadership
  • Facilitates project knowledge sharing
  • Supports progressive complexity in implementations
  • Creates a forum for emerging AI use cases

Proactive engagement has been key to our success. Through roadshows with offices across every line of business, we’ve discovered that many potential users don’t realize how many applicable use cases they have until they see the “art of the possible” in action. These demonstrations have sparked countless innovative ideas and implementations that might never have emerged without this direct engagement.

7. Define Clear Project Management Processes

Structured project management is vital for AI implementation success. Key components include:

  • Documented intake procedures for user requests
  • Explicit resource assignments for each project phase
  • Designated responsibilities for user engagement
  • Clear ownership of requirements gathering
  • Specific assignments for technology stack decisions
  • Named leads for deployment processes
  • Dedicated resources for compliance tracking

Having clear ownership for each task ensures nothing falls through the cracks. We’ve learned that vague or shared responsibility often leads to delayed implementation and missed requirements.

Looking Forward

As we move into our second year, we’re expanding into exciting new territories. We’re collaborating with research partners to explore fine-tuning open-source LLMs and developing domain-specific foundational models. These partnerships allow us to combine our practical implementation experience with cutting-edge research expertise, pushing the boundaries of what’s possible in federal AI implementation.

Remember: successful AI implementation in government isn’t just about cutting-edge technology — it’s about building sustainable, compliant, and valuable solutions that serve the public interest effectively. By sharing these lessons learned, we hope to help other federal AI enablement offices accelerate their journey to successful AI adoption.

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