POLICY INSIGHT
AI and Government Transparency
The Transparency Gap
Each year, hundreds of billions of taxpayer dollars are allocated across federal, state, and local governments. Yet much of that spending occurs behind layers of bureaucracy, leaving citizens with limited visibility into how their money is used or whether programs deliver results. According to the Government Accountability Office (GAO), improper federal payments alone totaled an estimated $236 billion in fiscal year 2023, a staggering amount driven by weak internal controls, fraud, and inadequate oversight.
For the average citizen, these oversight failures are compounded by outdated access to information. Despite living in a digital world, most Americans still rely on outdated methods to access information about their government:
- Filing Freedom of Information Act (FOIA) requests, which often take weeks or even months to fulfill.
- Attending town halls in person or watching lengthy, unindexed recordings online.
- Navigating complex, outdated agency websites to find budgets, procurement records, or performance reports.
Not surprisingly, about 20% of Americans say they trust the federal government to do the right thing “just about always” or “most of the time.”
This is the transparency gap, and it’s where artificial intelligence (AI) is beginning to make a measurable impact.
Modern civic tech platforms empower communities to serve as watchdogs and advocates by offering real-time legislative tracking of bills, votes, sponsors, and committees at both the federal and state levels. Many also support public sentiment monitoring, coordinated advocacy, FOIA submissions, and document publication.
In 2024, Virginia Governor Glenn Youngkin issued Executive Order 30, directing state agencies to scan and analyze more than 25,000 state regulations and guidance documents using AI. The aim: identify outdated or duplicative rules, streamline government operations, and reduce red tape. It was among the earliest state-led AI initiatives aimed at enhancing transparency and improving government responsiveness.
Beyond state government, AI is also being explored as a tool for grassroots oversight. A recent Law & Liberty essay envisions a neighborhood group, concerned about a sudden spike in technology procurement, using an AI-powered dashboard to analyze county contracts. Within hours, they detect anomalies, mobilize their community, and present their findings at a public meeting, prompting an audit and reforms. While hypothetical, the scenario illustrates a broader truth: when technology is accessible, citizens can strengthen self-governance and hold public institutions accountable.
These examples reveal a new frontier: one where oversight isn’t just the job of watchdogs and investigative journalists, but the everyday citizen, empowered by digital intelligence.
A CLOSER LOOK: THE DEPARTMENT OF GOVERNMENT EFFICIENCY
Want a quick refresher? The Policy Circle’s Government Accountability and Transparency Insight outlines the core principles behind effective oversight and open government.
CHECK IT OUT
A Wall Street Journal investigation revealed that DOGE overstated its contract-savings claims, initially reporting $55 billion in savings, later revised to about $7 billion, with actual savings likely closer to $2.6 billion due to double-counting and the inclusion of full contract ceilings rather than actual expenditures. AEI’s Nat Malkus questioned the reliability of the Department’s “Wall of Receipts,” citing inconsistent documentation and ambiguous metrics. A Cato Institute report welcomed the initiative’s goal of reducing bureaucratic waste.
Still, it warned that, without clear performance standards and independent oversight, such efforts risk becoming political theater rather than policy reform. Meanwhile, the Heritage Foundation’s David Ditch praised DOGE’s creation as a step toward fiscal responsibility but stressed the importance of transparency and sound execution to maintain public trust.
Tools That Illuminate Government
Artificial intelligence and digital innovation are transforming how governments function and how citizens engage. Today’s civic tech ecosystem includes technologies that do more than just visualize data; they provide real-time analysis, policy tracking, contract scrutiny, and navigation of open records. These resources enable communities to act as analysts, investigators, and informed participants.
Here’s a curated guide to the most strategic resources helping citizens understand, monitor, and influence how the government works, along with the purpose behind each category and why it matters.
CIVIC INTELLIGENCE AND LEGISLATIVE TRACKING
Civic intelligence and legislative tracking platforms make policymaking more visible and participatory, helping citizens see what legislation is under consideration, who supports it, and how to influence outcomes before decisions are made.
- CitizenPortal.ai: An AI-powered dashboard that simplifies legislative summaries, budget data, and regulatory activity. Built for citizens, it offers actionable insights to help people to understand and influence policy.
- Quorum: Used by advocacy organizations to track bills, monitor sentiment, and coordinate grassroots lobbying across jurisdictions.
- Polis: An AI-assisted platform for online public discourse. It helps identify consensus in diverse groups and is used by governments in Taiwan and U.S. cities.
- LegiScan: Tracks legislative activity in all 50 states and offers tools to compare policy movement, timelines, and issue-specific trends.
- GovTrack.us: Monitors U.S. federal legislation, votes, and sponsors, and shows how representatives align with constituents’ interests.
- OpenStates.org: Provides state-level tracking, including committee details, sponsors, and voting records.
PUBLIC RECORDS AND OPEN ACCESS DATA
Open data and public records tools unlock government information, allowing citizens and journalists to investigate and take action. When records are accessible, the public can hold officials accountable for how they spend, govern, and prioritize.
- FOIA.gov: The U.S. federal FOIA portal is now integrating AI tools to accelerate record searches and automate redaction of sensitive material.
- MuckRock: A citizen-facing platform to submit FOIA requests, track responses, and publish released documents used widely by journalists and watchdog groups.
- AI FOIA Assistants: Some agencies are piloting natural language processing tools from private vendors to extract, sort, and redact thousands of records at scale.
BUDGET SPENDING AND PROCUREMENT ANALYSIS
Budget, spending, and procurement tools are designed to track where public funds go, helping to identify waste, fraud, or hidden priorities. Because budgets reflect a government’s values, these tools help determine whether public programs truly align with the needs and will of the people.
- Open the Books: Tracks federal, state, and local government spending, visualizing expenditures down to line items like contracts, grants, and employee salaries.
- USASpending.gov: A federal transparency portal offering granular data on awards, contractors, and programs, including trends and audit flags.
- Checkbook NYC: Offers a model for municipal transparency, displaying where every dollar of New York City’s budget is allocated in real-time.
- OpenGov: Used by over 1,600 local governments to build digital budget books, performance dashboards, and financial transparency tools.
- Esper: A policymaking and regulatory management platform that allows governments to digitize their rulemaking process and for stakeholders to engage more meaningfully with proposals and revisions.
ELECTION INTEGRITY AND BLOCKCHAIN BASED PROOF
Election integrity tools help secure public trust by making democratic processes more transparent and tamper-proof. Under Article I, Section 4, Clause 1 of the U.S. Constitution, elections are primarily the responsibility of the state , including the administration of federal, state, and local contests. Because trust in elections is foundational to a functioning democracy, state and local governments must adopt technologies that preserve integrity and protect against fraud or manipulation.
- Simple Proof: Uses Bitcoin blockchain to secure and verify government records. In 2023, it protected the integrity of Guatemala’s presidential election results, offering a model for how blockchain can prevent tampering and enhance confidence in democratic processes.
- Voatz: A secure, mobile election platform used in pilot projects by overseas military voters and in select counties to enhance ballot integrity with biometrics and blockchain.
AI for Internal Accountability and Governance
The goal of internal accountability tools is to help governments identify and address risks, biases, or inefficiencies in their own operations. This kind of oversight is crucial as AI is increasingly used in areas like public benefits, law enforcement, and resource allocation. To govern effectively and fairly, agencies must be able to self-monitor, adapt, and correct course when necessary.
- AuditAI: is a tool that helps businesses check whether they’re meeting important quality, environmental, and safety standards. Unlike basic chatbots, it’s built to handle these reviews accurately and securely. It saves time by automating routine checks and helps ensure rules are followed fairly and clearly.
- AI Ethics Boards and Open Models: Tools are emerging to explain and audit algorithmic decisions within agencies, helping to demystify how AI is used internally for eligibility, enforcement, or funding allocation decisions. For more, see R Street’s recommendations.
DATA INFRASTRUCTURE AND LOCAL GOVERNMENT OPTIMIZATION
These optimization tools equip cities and counties to modernize operations through digital solutions, enabling them to serve the public more effectively, efficiently, and equitably. Since local governments manage many of the most immediate public services, like permitting, sanitation, and public safety, they face rising expectations with limited budgets. AI and automation can help them deliver better services to their communities.
- Smart Cities Dive: Reports how cities use AI to streamline permitting, optimize waste collection routes, or enhance public transit systems.
- Planetizen’s AI Roundup: Highlights local uses of GIS and machine learning to improve permitting speed and access.
- Cogent Info: Offers case studies on AI and automation, improving service delivery and cost savings for municipalities.
To utilize these technologies responsibly, governments must have clear rules and structures in place. The following section outlines the key policy frameworks that support digital innovation while safeguarding public trust.
Policy Frameworks That Make it Possible
While digital tools offer extraordinary potential to improve transparency and efficiency, their use requires supportive legal and institutional frameworks. At each level of government, different laws and initiatives establish the standards for implementing technology, always within the bounds of constitutional authority.
FEDERAL TRANSPARENCY AND EFFICIENCY LAWS
While the federal government cannot mandate how states and localities use AI, it plays an essential role in modeling best practices and enhancing its transparency and efficiency. Two cornerstone laws, focused on performance management and open data, have helped shape a culture of accountability across federal agencies and inspired broader civic tech innovation.
- Government Performance and Results Act (GPRA): Enacted in 1993 and updated by the GPRA Modernization Act of 2010, this law requires federal agencies to set strategic goals, measure performance, and publicly report progress. It was designed to make government more results-oriented and accountable to the public.
- GPRA laid the groundwork for performance-based management in government and drove transparency by requiring agencies to publish their objectives and performance data.
- OPEN Government Data Act (Title II of the Foundations for Evidence-Based Policymaking Act of 2018): This law requires federal agencies to make their data open and machine-readable by default. It establishes a Chief Data Officer in each agency and promotes data sharing for transparency, innovation, and evidence-based policy. Read the full law: Congress.gov – H.R. 4174
- Cato Institute commentary suggests that initiatives like DOGE could achieve more lasting efficiency gains by prioritizing stronger implementation of existing transparency laws such as the OPEN Government Data Act, which offer the technical and institutional foundations for real accountability.
- This law makes government data more accessible to the public, startups, watchdogs, and researchers, fueling civic tech innovation and oversight.
FEDERAL STRATEGY
At the federal level, the goal is to establish clear frameworks that guide federal agencies in using AI responsibly to improve their own operations. These frameworks focus on transparency, efficiency, and ethical implementation. While the federal government cannot mandate how states and localities use AI, it plays a key role in promoting research, sharing best practices, and offering voluntary guidance that state and local governments can adapt to their unique needs.
Key Policies and Guidelines:
- AI in Government Act of 2020: Focuses on federal agencies, requiring them to modernize service delivery through AI, share best practices, and coordinate AI research. It does not impose requirements on state or local entities.
- Federal Data Strategy & Evidence Act: Requires federal agencies to improve data access, transparency, and evidence-based decision-making, promoting efficiency and accountability.
- Blueprint for an AI Bill of Rights: Provides guiding principles, like algorithmic transparency and privacy, for all AI systems, but functions as a voluntary framework.
- GAO Guidelines: Establishes oversight principles for the federal use of AI, including explainability, fairness, and reliability.
STATE
At the state level, efforts focus on expanding transparency and ensuring the responsible use of AI within agencies. This includes regulating AI deployment, conducting impact assessments, and adopting open data and digital efficiency standards. States are also investing in digital infrastructure and access, laying the groundwork for more accountable, modernized public services.
Key State-Level Initiatives:
- California AI Transparency Act (SB-942): Requires the disclosure of AI use in state decision-making and risk assessments prior to deployment.
- Open Data Laws: States such as New York, Illinois, and California have enacted open data and digital transparency acts to make datasets publicly accessible.
- Digital Infrastructure Investments: Many states use federal broadband funds and digital literacy programs to ensure access to these technologies.
States lead the way in setting rules for AI and transparency within their own agencies. They often pilot innovative programs that local governments can replicate and implement.
LOCAL
The goal at the local level is to use technology to improve service delivery, streamline budgeting, and enhance communication with citizens, all while maintaining public trust. By adopting solutions like open data dashboards, digital permitting systems, and blockchain-secured records, local governments can become more responsive, transparent, and efficient in meeting the day-to-day needs of their communities.
Examples of Local Initiatives:
- See Checkbook NYC for a model of municipal financial transparency.
- OpenGov: Widely adopted by local governments to publish budget dashboards and performance metrics.
- Blockchain pilots: Local experiments like Williamson County, TN, use blockchain for secure voting and public record-keeping.
Local governments are closest to citizens and can make the greatest impact through transparent budgets, accessible services, and participatory processes.
Challenges and Caveats: What to Watch For
As artificial intelligence and digital tools open new doors for transparency and efficiency, they also introduce new risks. Without careful oversight and ethical guardrails, these technologies can unintentionally reinforce inequality, compromise privacy, or erode public trust.
Here are the key challenges civic leaders and citizens must be aware of.
BIAS AND ALGORITHMIC OPACITY
What’s the risk? Many AI systems operate as “black boxes,” making decisions that are difficult to explain or audit. If trained on biased data, these systems can reinforce existing inequalities.
- Example: Algorithms used to determine benefit eligibility or prioritize inspections may unintentionally penalize vulnerable communities.
- University of Michigan researchers explain how lack of transparency in AI design makes public oversight difficult.
What’s needed: Open-source models, algorithmic audits, and clear explanations of how decisions are made, especially in high-stakes public systems.
PRIVACY AND DATA PROTECTION
What’s the risk? AI systems often rely on large-scale data collection, raising concerns about surveillance, misuse, or breaches.
- Government databases that combine social services, healthcare, education, and criminal records may be vulnerable to misuse or unauthorized access.
- The Wall Street Journal reports that AI is increasing the urgency for robust data governance and expanding the role of Chief Privacy Officers.
What’s needed: Privacy-by-design principles, data minimization strategies, and robust whistleblower protections, like those proposed in the AI Whistleblower Protection Act.
THE DIGITAL DIVIDE
What’s the risk? Not all communities have equal access to broadband, devices, or digital literacy training, creating barriers to participation in tech-enabled governance.
- According to Microsoft Research, an “AI divide” is emerging where under-resourced areas are less likely to benefit from digital resources.
- The Pew Charitable Trusts highlights how some states are addressing this gap with federal broadband funding and skills programs.
What’s needed: Investments in infrastructure, training, and inclusive design to ensure all communities can access and benefit from civic tech.
MISINFORMATION AND MANIPULATION
What’s the risk? The same technologies that support transparency can also generate convincing false narratives, undermining trust and spreading disinformation.
- Deepfakes, AI‑generated news articles, and manipulated videos can be weaponized in political discourse.
- Brookings warns that AI tools are outpacing public understanding, and journalism requires stronger safeguards to counter manipulated content.
What’s needed: Media literacy education, content verification apps, and platform accountability for curbing AI-generated misinformation.
OVERREGULATION OR FRAGMENTATION
What’s the risk? Without coordinated federal standards, a patchwork of conflicting state and local regulations could slow innovation or create compliance chaos.
- The Cato Institute warns that some state-level AI laws may increase costs without improving outcomes.
- However, others, like California’s AI regulations, could become models for ethical use if implemented with transparency and input from stakeholders.
- R Street’s Adam Thierer warns, fragmented state-by-state approaches risk creating a “regulatory patchwork” that not only complicates compliance but also undermines U.S. leadership in AI by pushing innovation offshore or into legal uncertainty.
What’s needed: Flexible, principle-based frameworks that encourage innovation while ensuring fairness, safety, and accountability.
WHY ADDRESSING THESE CHALLENGES MATTERS
Failure to confront these issues risks eroding the very trust that transparency tools are designed to build. Just as digital intelligence can illuminate government, it can also obscure truth if left unchecked.
We are living through a shift in civic life. Just as AI and digital systems are transforming how government works, they’re also reshaping how each of us can influence public life.
Whether it’s using a dashboard to follow local spending, attending a city meeting with the right data in hand, or calling for AI transparency legislation, your voice matters.
Technology alone won’t fix the government. But I’ve seen how powerful it can be when individuals step up, equipped with the right tools, the facts, and a sense of purpose. Accountability in the digital age isn’t just a policy challenge. It’s a personal one.
Digging In
You don’t need to be a data scientist or elected official to drive transparency and accountability in government. With today’s technologies and the right mindset, any citizen can become a more informed participant, advocate, and leader in the digital age.
Here are practical ways to get involved:
1. Monitor and Understand Your Government in Real Time
Knowledge is power. These resources turn complex government data into understandable insights that help you make informed choices and hold leaders accountable.
Use dashboards like Citizen Portal, Quorum, or Open the Books to:
- Track how your local, state, and federal tax dollars are being spent
- Follow proposed legislation and regulatory changes
- Understand your elected officials’ voting records and policy priorities
2. Participate in Public Decision-Making
Public input can influence decisions before they’re finalized. Agencies are required to consider community feedback, especially when it’s backed by data.
- Submit comments on proposed rules through state and federal regulatory platforms
- Use Polis to join public discourse projects that shape policy outcomes
- Attend city council or committee meetings with questions informed by civic dashboards. Want to see how dashboards can put public data at your fingertips? Check out Additional Resources for a video that includes a description of how OpenTheBooks’ AI chatbot, Benjamin, serves as an assistant for exploring government spending in your community.
3. Advocate for Transparency and Ethical Tech
Technology must serve people, not obscure decision-making. Asking the right questions pushes institutions to be accountable.
- Organize or support advocacy campaigns that push for open data, FOIA reform, or algorithmic audits.
- Encourage your local government to adopt transparency tools like OpenGov or Checkbook NYC.
- Ask public officials whether AI resources are being used and how they are being evaluated.
4. Join or Support Oversight and Ethics Roles
Strong institutions depend on civic-minded individuals willing to step into oversight roles and ensure fair and transparent practices.
- Apply to serve on citizen advisory boards, ethics panels, or technology review committees
- Volunteer with civic tech nonprofits or watchdog organizations
- Identify and follow journalists and whistleblowers in your state or community who investigate and expose misuse of public resources, then support their efforts by sharing their work, amplifying key stories, or advocating for their independence
5. Build Civic Literacy in Your Community
When more people understand how the government works and how to engage with it, communities become more resilient, informed, and empowered.
- Host a workshop on using resources like FOIA.gov or USAspending.gov
- Encourage local schools to incorporate digital and civic literacy into curricula
- Share success stories from communities using tech to drive better governance
Additional Resources
- The Policy Circle’s Government Accountability and Transparency Insight.
- What is DOGE’s Real Goal? Interview with Santi Ruiz of the Statecraft podcast, on The Ezra Klein Show.
- Immutable Democracy, a documentary exploring the implementation of a Bitcoin-based transparency solution for the 2023 Guatemalan elections.
- Global Partnership on AI (GPAI) is an international multi-stakeholder initiative advancing responsible, human-centered development and governance of artificial intelligence, featuring reports and tools on algorithmic transparency and public sector AI ethics.
- Open The Books uses an AI-powered chatbot named Benjamin as a simple digital dashboard that allows users to access public spending data by answering three quick questions. The chatbot delivers customized results directly to the user’s email, making it easy to navigate complex government financial records without needing technical expertise. The explanation begins at 39:45.
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About the policy Circle
The Policy Circle is a nonpartisan, national 501(c)(3) that informs, equips, and connects women to be more impactful citizens.