If data is the new oil, the federal government is sitting on huge reserves, but is only just now figuring out how to refine it. Federal agencies collect personal data on citizens, GPS data, health care data, meteorological data, and a multitude of other kinds. That data is central to a number of ongoing initiatives in government: cybersecurity, automation, fraud and abuse mitigation, efficiency and transparency. But to use this data effectively, experts increasingly call for agencies to have a comprehensive data strategy, and a chief data officer to oversee it. Some agencies are farther along than others in this area, but new technologies and ways of doing business demand that each of them begin to address this now, if they haven’t already.

Deloitte’s Center for Government Insights put together a playbook for CDOs in government. Read it here.

One of the ripest opportunities for predictive analytics in the federal government is fraud and abuse. The Government Accountability Office estimated that in 2019 alone, the federal government paid out $175 billion in improper payments. Of that, $75 billion was deemed to be recoverable. That’s money on the table for agencies willing to put in the work to pursue it, and some agencies have already started using predictive analytics to do so. In 2018, the most recent year for which data has been reported, the Department of Health and Human Services’ Office of Inspector General recovered $2.3 billion in healthcare fraud judgements and settlements. Predictive analytics have played a significant part in that, sniffing out likely cases of fraud for investigators to pursue. Coronavirus stimulus spending is only going to create more potential opportunities for fraud in government Tim Persons, the Government Accountability Office’s chief scientist, said these data analytics tools, powered by artificial intelligence algorithms, have helped agencies “deal with messier, larger data sets,” and serve as force multipliers for auditors and investigators to recover money from these improper payments.

Read more about how governments are using predictive analytics to help spot fraud in this Deloitte article.

The President’s Budget Request for 2021 anticipates doubling spending on federal research and development for artificial intelligence. But increased spending without a clear plan for implementation might be a recipe for disaster. Some agencies have already started down the path to developing an AI strategy, like the Department of Defense, which stood up its Joint Artificial Intelligence Center in 2018. Other agencies have only just begun to consider how AI can enhance their operations. These agencies will have to plan carefully to avoid missteps and maximize the benefits they glean from this technology.

“AI is a powerful emerging and enabling technology that is rapidly transforming culture, society and, eventually, even warfighting. Whether it does so in a positive or negative way depends on our approach to adoption and use,” Air Force Lt. Gen. Jack Shanahan, director of the Joint Artificial Intelligence Center, said earlier this year. “We owe it to the American people … to adopt AI principles that reflect our nation’s values.”

What constitutes an effective AI strategy for a government agency? This article discusses: Crafting an AI strategy for government leaders