Licensing and permitting work grows more demanding every year in a rapidly changing regulatory landscape. Application volumes rise. Constituent expectations shift toward digital experiences that feel fast, reliable and intuitive. At the same time, budgeting and staffing rarely grow at the same pace. State regulatory agencies that adopt artificial intelligence tools now achieve measurable improvements in service delivery, internal efficiency and public confidence.
State and local governments rank AI adoption as a strategic priority for the next several years. In the recent State CIO Top 10 survey conducted by NASCIO, state CIO leaders for the first time ranked artificial intelligence and machine learning as the top priority for regulatory agencies in 2026.
When applied thoughtfully, AI helps regulatory agencies:
Government adoption of AI is no longer hypothetical. A Roosevelt Institute survey this year of federal, state and local agencies found that more than half of public sector workers already use AI regularly in their workflows.
AI tools support decision-making, automate routine tasks and help regulatory agencies respond faster to public needs. Boston Consulting Group’s Generative AI for the Public Sector: From Opportunities to Value report estimates a $1.75 trillion boost in annual productivity in the public sector from AI by 2033.
Regulatory agencies benefit directly because licensing and permitting work involves:
These conditions make regulatory work suited for practical AI applications that improve outcomes without reducing human control.
Manual intake and review duties slow down services such as licensing and permitting, inspections and regulatory certifications. Licensees often experience long wait times for responses and unclear next steps. Staff spend valuable hours sorting documents, checking requirements and responding to routine questions.
AI-enhanced automation tools help with:
These capabilities reduce rework and improve throughput in permit cycles without eliminating expert review where judgment matters most.
State human services agencies increasingly apply AI tools to license and monitor care providers and related regulatory programs. In Utah, for example, the Commerce Department adopted AI-assisted processing for professional licenses such as nursing credentials and international license verification. The approach helped reduce translation delays and staffing bottlenecks in credential review.
Regulatory programs generate massive amounts of administrative data from applications, inspections, renewals and compliance reports. Without analytical tools, much of this data stays underused.
Machine learning models help regulatory agencies spot trends that previously remained hidden:
By analyzing large datasets, AI provides actionable insight that supports risk-aware strategy and better allocation of staff resources. Licensing and permitting agencies that apply AI for analytics remove much of the manual work involved in complex data synthesis.
Constituent communication matters. Fast answers reinforce trust. Slow responses breed frustration.
Government-oriented chatbots now serve public inquiries 24/7 and reduce the burden on overloaded call centers. Industry research suggests that widespread chatbot adoption could help public sector institutions save billions in work hours and costs each year while offering constituents faster, more accessible service. According to a 2023 Gartner trend report, 60% of governments will prioritize business process automation in this next year.
Common chatbot duties include:
Use cases from public sector events show that a Pennsylvania county AI chatbot answered more than 100,000 questions and reduced incoming phone calls by 40 percent after deployment.
The GL Suite AI Chatbot provides conversational assistance designed specifically for regulatory agency environments. Unlike general-purpose chat tools, GL Solutions’ chatbot integrates directly with your regulatory systems and workflows. That means:
This integration helps reduce common errors by clarifying requirements before submission and by providing constituents with accurate, scenario-aware guidance.
The following tips help align AI with regulatory goals:
These best practices drive measurable AI value while reinforcing trust and regulatory integrity.
State agencies approach AI with both enthusiasm and discipline. Some states have already approved dozens of use cases across government while implementing guardrails that prevent AI from making consequential decisions without review.
AI does not replace expertise. It magnifies the impact of what teams already do well. When automation supports routine tasks, analytics elevates insight and chatbots offer consistent guidance, agencies gain time, clarity and greater public confidence. Smart adoption empowers regulatory teams to deliver better services faster while maintaining fairness, accountability and transparency.
GL Solutions helps agencies modernize licensing, permitting and oversight with purpose-built tools that fit regulatory workflows. With integrated automation, analytics and the GL Suite AI Chatbot, regulatory agency teams reduce processing time, improve accuracy and deliver clearer communication to constituents while maintaining governance and control. Explore how GL Solutions supports smarter, faster and more trusted licensing and permitting services at scale.
Chief Technology Officer Ryan Pedersen is an expert in technical solutions to industry needs. Ryan joined GL Solutions in 2010 as a developer and subsequently managed the development team for several years. He has served since as Vice President for Operations and Vice President for Business Solutions and currently works as Chief Technology Officer.
