Four steps government agencies can take to achieve meaningful modernization

The current federal administration has issued a challenge to federal agencies: accomplish their missions with greater speed, cost savings, and efficiency. This unprecedented moment of technological opportunity requires a bold strategic vision that can meet today’s challenges, and ensure America maintains its global leadership in AI and innovation. Drawing on the extensive experience Amazon Web Services (AWS) has in partnering with public sector organizations worldwide, here are four transformative steps agencies can take to drive meaningful modernization and shape the future of government service delivery.

1. Migrate from on-premises to the cloud to unlock savings and security

AWS has years of data showing that migrating to the cloud from on-premises saves money. The choice is clear: if you want to be more efficient, moving to the cloud is the way to go. When customers migrate to the cloud, some cut their related IT expenditures by almost two-thirds which can generate major savings for taxpayers.

AWS works with thousands of public sector organizations to migrate to the cloud securely. Cloud enables customers to instantly scale resources to meet fluctuating mission needs, shift from capital expenditures to a more flexible pay-as-you-go model, and leverage built-in security and compliance frameworks specifically aligned to government requirements. AWS supports 143 security standards and compliance certifications, including PCI-DSS, HIPAA/HITECH, FedRAMP, GDPR, FIPS 140-2, and NIST 800-171, helping satisfy compliance requirements for virtually every regulatory agency around the globe.

AWS’s security-first architecture, combined with continuous monitoring and automated threat detection, provides agencies with stronger security posture than most can achieve on-premises. This comprehensive approach not only reduces costs, it strengthens security and accelerates innovation.

2. Adopt AI tools to boost efficiency and productivity

Artificial Intelligence (AI) is transforming government operations by automating routine tasks, enhancing decision-making, and improving citizen engagement. Every day, AI-powered digital transformations are moving beyond proof of concept into fully operational solutions.

For example, the Financial Industry Regulatory Authority (FINRA), which is not government but operates under Securities and Exchange Commission (SEC) oversight, achieved a 40 percent reduction in effort for technology upgrades and maintenance tasks using AI-powered development tools, while also improving code quality and integrity by 30 percent.

The U.S. Navy Reserve is seeing the benefits of AI after deploying a Q&A chatbot in just four months that now helps more than 56,000 reservists find critical information faster. Built on AWS GovCloud, the chatbot uses generative AI to aid reservists in accessing information quickly, reducing the need for support calls to their command.

These are just two examples of how AI is transforming government across multiple fronts—from automating document and records management, to deploying virtual assistants to provide 24/7 support, and implementing predictive analytics that can anticipate service needs and optimize resource allocation. These capabilities enhance productivity while allowing government employees to focus on higher-value work that directly improves mission outcomes.

AWS announced the Generative AI Impact Initiative, a two-year, $50 million investment designed to accelerate AI adoption among public sector organizations. Since then, customers from around the world have increased innovation using AWS generative AI services and infrastructure, such as Amazon Bedrock, Amazon Q, and more.

3. Invest in upskilling and workforce training

Technology is only as effective as the people who use it, and agencies that invest in continuous learning and workforce development are able to more fully realize the benefits of modernization.

Upskilling is time and resources well spent. This is why AWS offers a wide range of training and certification programs designed specifically for public sector professionals, helping agencies close the digital skills gap and build a future-ready workforce. Federal employees can also take advantage of our newest programs: AWS Certified AI Practitioner and AWS Certified Machine Learning Engineer – Associate.

Training has been a longstanding investment for AWS. In December 2020, AWS committed to investing hundreds of millions of dollars to provide free cloud computing skills training to 29 million people worldwide by 2025. More than a year ahead of schedule, AWS has surpassed this ambitious goal, having helped more than 31 million learners across 200 countries and territories build their cloud skills through its free training initiatives. This milestone represents AWS’s relentless drive to democratize access to cloud careers and uplift communities worldwide.

4. Optimize budgets through data-driven decision making

Efficient budgeting requires real-time visibility, strategic planning, and accountability. Cloud-based analytics tools can empower agencies to make smarter financial decisions and maximize the impact of public funds. According to an ESG Economic Validation study, 83 percent of organizations reported that AWS helped them improve their ability to perform analytics on their data, and organizations leveraging AWS analytics tools experienced a 37 percent improvement in the speed of data-driven decision making—enabling more strategic resource allocation and budget optimization.

AWS tools can empower agencies to gain financial transparency and control through real-time cost monitoring and forecasting dashboards that track and predict spending patterns, resource optimization capabilities, and performance metrics that align spending directly with mission outcomes and citizen satisfaction. With solutions like Amazon DataZone, agencies can implement comprehensive data governance while democratizing access to insights.

The Defense Innovation Unit used cloud technology to optimize air logistics, which has critical impact on national security. With the ability for on-time package delivery worldwide, AWS used its internal air logistics optimization engine to create a service that the U.S. Department of Defense (DoD) tested. During a demonstration, Amazon developed several route options which reduced the number of needed aircraft by up to 50 percent, drove mission operation cost savings by 12 percent, and reduced pallet delivery expenses by 10 percent.

Conclusion

Achieving meaningful modernization is not just attainable for government agencies—it’s essential for America’s continued AI leadership. By migrating to the cloud, adopting AI, investing in workforce development, and optimizing budgets, federal agencies can transform their operations while simultaneously strengthening the nation’s position at the forefront of global innovation. At home, these modernization efforts create a powerful foundation for advanced AI applications that directly improve Americans’ everyday interactions with government, building trust in institutions while ensuring taxpayer dollars deliver maximum value. AWS remains committed to working as a trusted mission partner with the federal government to achieve these goals through secure, scalable, and cost-effective cloud solutions that accelerate America towards technological advancement and AI leadership.