Report: Staff Capacity, Data Silos Challenge Regulatory AI Adoption
Government agencies see the potential in artificial intelligence, but workforce and technology challenges slow adoption, according to the 2026 State and Local AI Readiness Report. The 2026 report surveyed 121 state, local and federal government employees about AI adoption, barriers and opportunities. Almost 60% of respondents cite limited staff capacity as a barrier to modernizing resident-facing services, while 52% point to fragmented systems and data silos. And 47% cite risk and compliance constraints. Security of AI models and underlying data also ranks as a leading concern surrounding AI use. At the same time, 35.5% of respondents identify improving internal workflows or processes as the primary driver of their organization’s AI investment. For regulatory leaders, the findings highlight a key takeaway: Capturing AI’s benefits requires connected data, trained staff and strong governance to turn emerging technology into meaningful operational improvements.
5 Takeaways for Regulatory Leaders
- Build staff capacity before expanding AI across regulatory operations.
- Connect siloed data to improve AI usefulness and accuracy.
- Strengthen governance to manage AI security, compliance and risk.
- Target AI toward repetitive workflows that consume valuable staff time.
- Pair AI investments with workforce training and clear oversight.
Alabama Nurse Licensing Back Online After Cyberattack
The Alabama Board of Nursing resumed online license renewal for registered nurses in Alabama after a cyberattack in August prompted the board to move to paper applications. According to AL.com on October 22, a ransomware attack potentially exposed the personal information for all Alabama nurses, applicants and those who interacted with the agency; potentially leaked data included names, social security numbers and medical information. Since the incident, the board replaced an in-progress database, with a “much better system still under development,” said Administrative Director Honor Ingels. Almost 60,000 nurses must renew by December 1—with no extension offered.
Accreditation Ties Raise Questions for Professional Licensing
A new policy brief raises questions about whether organizations that accredit programs preparing people for licensed professions operate independently from the professional associations representing those fields. Captured Gatekeepers: Controlling Entry into Licensed Professions, published by the Archbridge Institute on Oct. 20, 2026, examines seven years of IRS filings for 25 federally recognized programmatic accreditors. Researchers found that 22 of the 25 accreditors studied either file under an affiliated association’s tax identification number or legally operate as the same organization. Among 18 health profession accreditors, 14 received the study’s highest score for structural capture. The report outlines policy recommendations.
Policy recommendations from the report include:
- Require organizational independence.
- Require independent boards.
- Cap financial dependence.
- Repeal the grandfather waiver.
- Mandate structured disclosure.
Renee Moseley joined GL Solutions in 2016 with an educational and professional background in research and writing, along with software documentation. At GL Solutions she produces informative content to help regulatory agencies stay current on news and information that supports their success.
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