Artificial Intelligence and Cybersecurity: A Federal Perspective

As artificial intelligence (AI) continues to expand across Government operations, Federal agencies must integrate advanced AI technology to strengthen cybersecurity while staying ahead of new cyber threats. This is especially crucial in environments where critical systems, personally identifiable information (PII), and critical infrastructure are constantly targeted by sophisticated adversaries.

AI is a double-edged sword. Malicious actors now use machine learning techniques, deep learning and generative AI to scale cyberattacks at unprecedented speed. At the same time, security teams are successfully deploying advanced AI algorithms, security tools and threat intelligence to detect, defend and respond faster. Striking the right balance is essential for Federal leaders responsible for safeguarding national interests.

In this article, we’ll talk about how to find the right balance between exploiting AI’s capabilities and guarding against the risks. We’ll also explore the specific threats agencies face today, and discuss how AI can help by automating risk management.

The Growing Cybersecurity Challenge

Ransomware, large-scale phishing campaigns and deepfake social engineering attacks are accelerating due to advancements in AI systems and large language models (LLMs). Cybercriminals can cast a wider net than ever before, with little effort and at a low cost to themselves, especially when targeting critical infrastructure and Federal systems.

Increased Threats

It’s worth noting that even benign AI applications are paving the way for more cyber events. When Government agencies adopt AI tools, they automatically expand their networks and their “attack surfaces,” requiring new security measures and stronger vulnerability assessment practices.

AI’s automation and speed enable large-scale attacks. AI can rapidly scan and scrape online databases and analyze network traffic, looking for potential targets to attack. Hackers can use AI’s no-code automation capabilities to create the code for malware at high speed, and to send out phishing emails at a larger scale than ever before. AI’s natural language processing (NLP) capabilities allow it to create credible “deepfake” video and audio at high speed, as well.

The vast majority of these attacks are unsuccessful, but it only takes one careless end user to click a bad link to a malicious website, or to click a link that triggers a domain blocking failure. That’s why it’s so important for security teams to be on their guard. Fortunately, AI tools can also help. Just as no-code automation helps hackers, it also helps agencies protect themselves against threats.

Leveraging AI Tools To Fight Cyberattacks

The same capabilities that can make AI useful for hackers also make it a great tool in fighting cyber threats. Automation, speed and the ability to identify patterns are all invaluable for countering online threats.

Using AI to Identify Phishing Attacks

AI excels at assisting with phishing detection. AI and Machine Learning (ML) tools can quickly “read” incoming emails and texts and scan them for telltale signs of danger, like unusual sender addresses. AI’s natural language processing capabilities also help. NLP tools scan incoming messages for unusual phrasing or a strange tone, which might indicate a phishing attack.

Most spam folders are powered by AI and ML tools. These tools are constantly learning on the job, too. Whenever you mark an incoming email “spam,” your software learns a little more about what you consider to be spam. Going forward, it incorporates that information into its workflow.

Using AI To Scan for Malware

AI-powered antivirus tools scan for malware more effectively than older antivirus detection systems. The AI software scans and analyzes huge quantities of data in network traffic and system logs to identify patterns that could indicate a virus. Because deep learning models are so good at identifying patterns and spotting anomalies, it can often spot new viruses early on.

Older antivirus software relies on known viral signatures. While useful, these tools can’t keep up with new threats evolving through AI algorithms. That’s the AI difference: predictive pattern detection supports proactive cybersecurity solutions and strengthens incident response.

Using AI To Identify Threats From Within

AI can help to spot attacks from within. The software establishes a baseline of user behavior, like normal login hours and normal patterns of data access. When there’s a change in that baseline, the AI tool flags it for further investigation.

AI looks for changes like unusual activity outside of a team member’s normal working hours or location-based aberrations. For example, if a member of your team normally logs in at 9 a.m. and out at 5 p.m., the AI tool will notice if they start logging in again at midnight to download files. Even if they have authorization to view that information, it’s worth asking why they suddenly need to access it at an unusual time. In the same vein, further review may be warranted if an employee views a record from an atypical IP address.

Using AI To Actively Fight Threats

Beyond identifying cyber threats, AI tools can proactively defend systems. They block or isolate compromised devices, enforce malicious domain blocking, apply system patches and notify security teams of attempted attacks.

AI-backed incident response workflows reduce the spread of malware and help protect the network even when one endpoint is compromised.

Exercising Precaution: Building Guardrails for AI

AI is a valuable tool for fighting cyber threats. However, it’s important to protect your network and end users against AI’s natural pitfalls. Federal agencies have a special responsibility to install guardrails in accordance with the relevant regulations and guidelines.

AI guardrails ensure that the technology behaves according to ethical standards, avoiding bias and making appropriate use of sensitive data. To some extent, AI itself can create guidelines. Generative AI tools can routinely scan for ethical problems and alert managers to any new issues.

However, human oversight remains crucial, and agencies should appoint managers to be directly accountable for AI supervision. The NIST AI Risk Management Framework provides detailed guidance for managers and anyone else involved in managing AI guardrails.

Making the Best Use of AI

Government agencies can’t turn their backs on AI. The technology offers too many benefits to stop using it. However, leaders must be aware that expanding AI also opens them up to greater threats. It’s also critical to be alert to the many dangers posed by AI-enabled cyberattacks.

The first step? Inform yourself about how AI can impact your agency. To get started, learn about AI integration into GRC today.

The Practical Applications of Artificial Intelligence in Government Programs

A Government’s ability to lead, protect and serve is tied to how boldly it embraces technology. Artificial intelligence (AI) is no longer a distant concept. It’s a force already redefining the way agencies operate, safeguard resources and deliver services. In an era where global competitors are racing ahead with automation and advanced analytics, standing still is not an option. Agencies that adopt AI strategically will not only keep pace but set new standards for effectiveness, transparency and citizen trust.

Key Use Cases for Artificial Intelligence in Government

Across the Public Sector, AI is moving beyond pilot projects into critical programs. Government agencies are weaving AI into their daily operations. They are detecting fraud before it drains budgets, automating compliance that once accounted for many staff hours and analyzing risks too complicated for manual review. The practical applications are real, measurable and growing. What once seemed like gradual innovation is quickly becoming a foundation for modern governance.

Common AI use cases in Government include:

Fraud detection and prevention

The U.S. Government loses between $233 billion and $521 billion a year to fraud. While no agency is immune to fraud, AI is helping the Government fight back. For example:

  • The Treasury Departmentuses machine learning to detect fraud in real time, enabling it to recover over $4 billion in fraudulent funds during fiscal year 2024.
  • The Centers for Medicare & Medicaid Services (CMS)has integrated AI in its fraud prevention system to review claims before payment. Between January and August 2025 alone, it denied over 800,000 fraudulent claims, saving more than $141 million.
  • The IRS uses AI-powered tools, such as the Risk-Based Collection Model, to improve fraud detection and reduce the tax gap.

Compliance reporting

Compliance is time-consuming for agencies, but AI is now automating much of the process. Agencies use AI to monitor real-time data and flag inconsistencies to simplify reporting. With these capabilities, AI enables greater transparency and faster responses to regulatory requirements.

While AI doesn’t replace human oversight, it frees staff to focus on higher-value analysis, cutting the time and costs of compliance. A good example is the Securities and Exchange Commission’s (SEC) use of natural language processing to automate reporting for financial markets. It processes millions of filings and generates compliance reports to improve enforcement efficiency.

Risk management

Government programs face constant risks:

  • Operational
  • Financial
  • Security
  • Environmental
  • Third-party exposure

AI in Government is already helping agencies with minimum risk management practices. For instance, automating third-party risk management with AI-enabled Governance, Risk and Compliance (GRC) platforms helps agencies assess vendor reliability and track compliance to reduce exposure.

Supply chain monitoring

The COVID-19 pandemic revealed the vulnerability of the public supply chain. AI is now helping the Government strengthen resilience with real-time monitoring.

Machine learning models predict bottlenecks to help agencies optimize their logistics. Additionally, enhanced visibility allows policymakers to proactively mitigate third-party risks in the supply chain, as they can monitor vendors and flag vulnerabilities before they escalate.

Policy cycle integration

Public policies move through cycles: setting the agenda, designing solutions, implementing programs and evaluating results. AI has a role at each stage.

Policy cycle stageAI’s roles
Agenda-settingAnalyzes citizen feedback and emerging trends to identify priorities
Solution development Models the likely impact of different policy options
ImplementationAutomates program operations
EvaluationMeasures outcomes against goals

Used thoughtfully, AI makes the policy cycle more evidence-driven and adaptive.

Citizen services

According to a 2024 Salesforce report, 75% of Americans expect Government digital technologies to match the quality of the best private sector organizations. To meet these expectations, U.S. and State Government agencies are using:

  • Chatbots to answer common questions and improve the availability of Government services
  • Digital assistants to provide personalized help and handle more complex inquiries
  • Self-service portals to let citizens complete tasks like renewing licenses on their own

Benefits of Artificial Intelligence in Government

Beyond mere modernization, embracing AI in Government delivers measurable value:

Increased efficiency and productivity

According to a 2023 McKinsey report, generative AI can automate 60%–70% of tasks and add $2.6–4.4 trillion annually to global productivity. Federal and State agencies are using AI to reduce repetitive tasks such as data entry and document reviews to free Government employees’ time for more strategic efforts. This shift in focus raises productivity without adding headcount.

Improved strategy

Insights from AI help policymakers see the bigger picture. Agencies use predictive analytics to forecast outcomes and test scenarios so they can design public policies to prevent undesirable outcomes to begin with, instead of just reacting to them.

Greater responsiveness

AI makes public services more responsive. Examples include agencies using chatbots to answer citizens’ questions and sentiment analysis tools to better listen to community concerns.

Implementation Challenges that Hinder the Strategic Use of AI in Government

While AI is already delivering results in Government agencies, several obstacles hinder its broader adoption.

Skill gaps and training

A 2024 Salesforce survey found that 60% of Public Sector IT professionals say limited AI skill is their top challenge in implementing AI.

Data biases and ethics

AI learns from data that often reflects existing societal inequities, which can perpetuate or even amplify bias.

Data management

Many agencies rely on siloed or outdated systems. In fact, the Federal Government faces a $100 billion legacy IT challenge, making it difficult to integrate and secure data effectively.

Public trust

Government agencies are expected to operate with a high degree of accountability and transparency. Public skepticism, shaped with legitimate concerns about bias and privacy, may stall or derail AI initiatives.

The Way Forward: Building Smarter, Trustworthy Public Programs

The potential of AI in Government is huge, but so are the risks. To enjoy the benefits while protecting public trust, it’s important to follow best practices for managing AI risks:

  • Treat AI as a strategic asset that drives smart, citizen-focused outcomes, rather than just a technical tool.
  • Pair AI with human oversight to address biases and provide context in decision-making, so the outcomes remain fair and ethical.
  • Invest in responsible governance frameworks to guide the development and deployment of AI within your agency.
  • Monitor AI continuously after deployment to address any unintended consequences.

Managing AI in GRC Solutions