Responsible Government Use and Oversight of AI: Key Takeaways from Tennessee Leaders

AI is transforming how governments serve citizens—but with great potential comes critical challenges like ethics, bias, and workforce readiness. How can public agencies harness AI responsibly while safeguarding public trust?

At the 2025 Government Innovation Showcase Tennessee, leaders explored cutting-edge strategies to balance AI innovation with oversight. One standout session—*Responsible Government Use and Oversight of AI—featured state and local experts sharing actionable approaches to navigate risks like misinformation and equity gaps. 

PSN brought together an esteemed panel of public sector innovators, each offering unique frontline perspectives:

Lauren S. Lamberth, Special Counsel to the Chief Deputy, Office of the Tennessee Attorney General

Roger Waynick, Director of AI Strategy & Innovation, Department of Finance and Administration, State of Tennessee

Aaron Welch, Director of Security, City of Chattanooga

Key Themes from the Discussion

1. Start with Risk Awareness and Governance

Understanding the importance of understanding AI risks before deployment. Key recommendations included:

• Know common risks (bias, privacy, misinformation) and prepare mitigation strategies.
• Understand how AI tools work, particularly their data usage.
• Align AI solutions with actual needs—don’t adopt tech searching for a problem.
• Incorporate feedback mechanisms to ensure transparency and accountability.

2. Collaboration Between State and Local Governments

Highlighted how cities can serve as innovation test beds. Chattanooga’s approach includes:

• Prioritizing AI as a "copilot"—augmenting staff, not replacing jobs.
• Engaging the community to reduce fear and uncertainty around AI.
• Leveraging open data to fuel AI development while ensuring strong data governance.

AI Advisory Council is fostering cross-agency collaboration and learning from other states’ missteps to avoid overly restrictive policies.

3. Data Readiness and Workforce Upskilling

A recurring theme was the need for clean, well-governed data to power AI effectively. Many agencies lack structured data policies, making AI integration challenging. Meanwhile, an emphasis on upskilling employees to work alongside AI tools, ensuring expertise isn’t eroded but enhanced.

4. Security and Policy Considerations

• Bans on high-risk AI tools: Tennessee has blocked certain foreign AI models (like DeepSeek) over cybersecurity and bias concerns.
• Monitoring AI usage: Agencies are deploying LLM gateways and data loss prevention (DLP) tools to control AI access and prevent sensitive data leaks.
• Advocating for federal AI frameworks: Panelists agreed that a national baseline (similar to HIPAA) would prevent fragmented state regulations from stifling innovation.

Final Thoughts

As AI evolves, governments must balance innovation with ethical oversight. Tennessee’s approach—centered on collaboration, risk management, and workforce readiness—provides a roadmap for other agencies. The key takeaway? Start small, prioritize transparency, and ensure AI serves the public good.

For more insights on AI in the public sector, follow the Public Sector Network’s ongoing coverage.