New Research: State and Local Government AI Deployments Risk Damaging Resident Trust

Audio By Carbonatix

KANSAS CITY, Mo.--(BUSINESS WIRE)--Sep 3, 2025--

While government agencies are rapidly deploying artificial intelligence (AI) to improve service delivery, new research shows many residents remain skeptical about its use in public services — at a time when trust in government is already at historic lows.

PayIt, the leader in digital customer experience solutions for state and local governments, surveyed more than 850 U.S. residents to understand their experiences with digital services and their attitudes toward AI in government. The results reveal significant tension between the benefits of digital government and human factors that influence digital adoption and trust.

“As government agencies are moving quickly to deploy AI, technical aspects often overshadow the human elements,” said Kelly Davis-Felner, chief marketing officer at PayIt. “But our findings show that managing human factors through transparency and thoughtful communication is essential to achieving the benefits of AI and restoring resident trust.”

Key findings from the report:

• AI adoption outpaces resident comfort: Half of residents are uncomfortable with AI in government, and that sentiment has held steady since 2024 (with Gen Z and Gen X actually showing a decrease in comfort year over year).
• Trust is conditional: Residents are more likely to support AI that improves efficiency or service speed — but remain wary of applications that use personal data or make decisions without human oversight.
• Transparency is essential: 79% of respondents said agencies should be required to disclose when AI is used in service delivery.
• Digital basics still matter: The report also identifies key features residents expect from digital experiences, such as automatic reminders, saved payment methods, and faster checkouts, that continue to drive digital adoption.

This consumer report complements PayIt’s earlier 2025 survey of state and local government leaders, which found that nearly 60% of agencies are already using AI in some capacity, with another 25% currently deploying AI. Together, the reports underscore a clear opportunity: Agencies can strengthen trust and engagement by pairing technical deployment with proactive communication, clear disclosures, and resident-first planning.

Explore these insights further by downloading the full 2025 Consumer Digital Government Adoption Index.

About PayIt

PayIt enables state and local government agencies to deliver a great resident payments experience that accelerates the shift to digital. Agencies choose PayIt to better achieve their mission through improved operational efficiency, customer support, and resident satisfaction. Our solutions span property tax, courts, utilities, DMV, outdoors, and more. PayIt provides a single resident profile across agencies and jurisdictions, integrates into back-office and adjacent systems, and our team helps clients drive adoption of digital channels. Serving more than 100 million residents in North America, we have received awards from Fast Company and StateScoop, and have been listed in the GovTech 100 for 9 years and counting.

PayIt: Smarter for government. Easier for everyone.

View source version on businesswire.com:https://www.businesswire.com/news/home/20250903741749/en/

CONTACT: Media Inquiries:

Cara Schwartzkopf

Marketing Communications Manager

PayIt

[email protected]

KEYWORD: UNITED STATES NORTH AMERICA MISSOURI

INDUSTRY KEYWORD: PROFESSIONAL SERVICES PUBLIC POLICY/GOVERNMENT STATE/LOCAL OTHER PROFESSIONAL SERVICES TECHNOLOGY SOFTWARE ARTIFICIAL INTELLIGENCE

SOURCE: PayIt

Copyright Business Wire 2025.

PUB: 09/03/2025 09:00 AM/DISC: 09/03/2025 09:00 AM

http://www.businesswire.com/news/home/20250903741749/en