In a recent article for Government Technology Insider, our CEO, Rick Fortman, sheds light on the growing market for modern technology in local government. The article, "Why Local Governments Are the Next Frontier for ERP and AI Innovation," highlights how regulatory changes, citizen expectations, and cybersecurity threats are driving an urgent need for new tech solutions. It makes a really strong case for why local governments are going through a big tech transformation.
Why all the change? Local governments are facing significant pressure from multiple directions, creating an urgent demand for new technology.
For one, new regulations are coming down the pipeline. Federal and state agencies are tightening rules around data privacy, cybersecurity, AI governance, and digital accessibility. So, governments are forced to get new tech to keep up and stay compliant.
And citizens have higher expectations, too. They want transparency. They want to hold agencies accountable. They expect real-time information. Modern technology helps with that, too.
But the biggest issue might be cybersecurity. Local governments are a major target for cyberattacks. And ransomware attacks on state and local governments are getting more expensive. A lot more. State and local government organizations reported an average cost of $2.83 million in 2024, more than double the cost from the previous year. This threat is exacerbated by outdated infrastructure, with nearly 60% of CISOs reporting this as a major challenge.
Even though these problems look big, they can provide a huge opportunity. Rick's article argues that modern ERP (Enterprise Resource Planning) systems, when combined with automation and AI (Artificial Intelligence), can provide a path forward.
Why? Because modern tech can help. A good ERP system is the foundation for everything. Governments can move from just reacting to being proactive. ERP software can flag inconsistencies, maintain compliance, and produce reports automatically. Automation and AI can reduce errors, save time, and free up staff to focus on other work that moves the community forward.
With modern technology, you can make smarter decisions and get better at talking to the public. Integrated data can be pushed to public transparency portals. This improves accountability and public engagement.
But many in the public sector space are hesitant (to say the least) to adopt cloud-based solutions and AI. And it's likely due to misconceptions. The truth is that modern technology can make your work life so much easier.
So, how do you get started? Rick says the key is to start small. Just pick one clear, specific use case. Maybe automate some document processing or try out an AI-powered chat tool. Thoughtful adoption beats avoiding technology every single time.
The article emphasizes that digital transformation is happening now, and a proactive approach is necessary for governments to stay ahead of future mandates and threats.
This is a wake-up call. (Insert Rocky theme music.) And the companies that jump in will be the ones to help shape the future of ERP and AI in the public sector.