Ever to Conquer: The Relentless Pursuit of Public Sector Innovation

Introduction

Welcome to this edition of Ever to Conquer, where we spotlight the transformative initiatives reshaping America's public sector technology landscape. This week brings groundbreaking developments that are accelerating innovation, strengthening security, and modernizing operations across federal and SLED ecosystems.
This edition highlights:

• AI & Government Innovation: AI-powered chatbots and multimodal analytics revolutionize veteran services and public health.

• Cybersecurity: Quantum threats and AI-driven cyberattacks demand urgent action.

• Procurement & Partnerships: Sustainable procurement and AI tools reshape federal and SLED contracting.

• Data Privacy & Protection: New state privacy laws and EU AI Act compliance create a complex landscape.

• Government IT Modernization: Zero trust mandates and legacy system challenges drive transformation.

• Public Policy: FAR overhaul and cybersecurity mandates for state grants signal major shifts.

AI and Government Innovation

AI-Powered Chatbots Slash Wait Times for Veterans’ Services

The Department of Veterans Affairs has deployed generative AI chatbots across its digital platforms, reducing response times for veteran inquiries by 40%. These secure cloud-based tools handle routine tasks like benefits tracking and appointment scheduling, freeing staff for complex cases.

• Why It Matters: AI is critical for scaling government services to meet rising citizen expectations for fast, accessible support.

• Actionable Insights:

  • For Buyers: Prioritize FedRAMP-compliant AI solutions for high-volume, low-complexity tasks to maximize ROI.

  • For Sellers: Highlight scalable, compliant AI platforms that integrate with existing systems, emphasizing measurable outcomes like reduced response times.

• Source: GovTech, Jun 2025

Multimodal AI Transforms Public Health Data Analysis

State health agencies are adopting multimodal AI to analyze text, images, and audio, enabling real-time insights from diverse datasets like patient records and social media. Wisconsin’s health department reported a 30% improvement in outbreak prediction accuracy using Google Cloud’s AI tools.

• Why It Matters: Multimodal AI unlocks deeper insights, helping agencies respond faster to public health crises while optimizing resources.

• Actionable Insights:

  • For Buyers: Invest in AI platforms supporting multimodal data processing and interoperability with legacy systems.

  • For Sellers: Showcase case studies of AI-driven outcomes in public health to build trust with SLED clients.

• Source: Public Sector AI Summit, Jun 2025

SLED Market Embraces AI Despite Budget Constraints

The SLED IT market, valued at $155 billion for 2025, faces 2% growth due to reduced stimulus funding, yet AI adoption is surging for efficiency gains. High-impact AI services are driving investment in permitting, licensing, and citizen services despite tighter budgets.

• Why It Matters: Budget pressures are pushing SLED agencies to prioritize AI solutions with immediate operational improvements and cost savings.

• Actionable Insights:

  • For Buyers: Focus AI investments on solutions with clear ROI within 12 months, particularly in citizen-facing services.

  • For Sellers: Offer AI products with flexible pricing models, emphasizing cost displacement for budget-conscious SLED clients.

• Source: GovWin SLED IT Forecast, Jun 2025

Congressional AI Moratorium Debate Intensifies

Congress is debating a 10-year moratorium on state and local AI laws to prevent fragmented regulations from hindering federal IT modernization. The proposal aims to unify frameworks while advancing $500 million in federal IT investments.

• Why It Matters: Inconsistent AI regulations could increase compliance costs and limit innovation, impacting agencies’ ability to adopt advanced AI tools.

• Actionable Insights:

  • For Buyers: Advocate for standardized AI procurement guidelines to ensure consistent evaluation across jurisdictions.

  • For Sellers: Develop AI solutions meeting the strictest state requirements to prepare for potential national standards.

• Source: Data Innovation Report, Jun 2025

🎙️ Check Out The Latest Episode of the Ever To Conquer Podcast 🎙️

Cybersecurity

Quantum Threats Loom: Agencies Urged to Adopt Crypto-Agility

As quantum computing advances, NIST warns of “harvest now, decrypt later” attacks targeting sensitive government data. Palo Alto Networks predicts a surge in quantum-related threats by late 2025.

• Why It Matters: Quantum computing could render current encryption obsolete, threatening national security and infrastructure.

• Actionable Insights:

  • For Buyers: Audit encryption vulnerabilities and prioritize quantum-resistant solutions in your cybersecurity roadmap.

  • For Sellers: Market crypto-agile solutions aligned with NIST SP 800-53 Revision 5, emphasizing ease of integration.

• Source: CyberSec Insights, Jun 2025

AI-Driven Cyber Espionage Spikes Amid Global Tensions

State-aligned actors are leveraging AI for automated cyberattacks, with a 20% increase in incidents targeting U.S. infrastructure in Q2 2025. Collaborative defense frameworks between allied nations are critical.

• Why It Matters: AI-powered attacks are faster and more precise, demanding proactive, cross-border cybersecurity strategies.

• Actionable Insights:

  • For Buyers: Partner with allies for threat intelligence sharing and invest in AI-driven threat detection.

  • For Sellers: Offer platforms combining AI threat detection with real-time analytics to counter evolving threats.

• Source: Federal Cybersecurity Review, Jun 2025

CISA Enhances Threat Detection with New Vulnerability Alerts

CISA added critical vulnerabilities in Apple products and TP-Link routers to its Known Exploited Vulnerabilities Catalog, noting active exploitation by malicious actors. Agencies must patch systems by July 8, 2025.

• Why It Matters: The evolving threat landscape requires rapid patch management to protect government systems.

• Actionable Insights:

  • For Buyers: Implement automated vulnerability scanning and prioritize patching KEV catalog vulnerabilities within deadlines.

  • For Sellers: Develop solutions integrating with CISA’s KEV catalog, offering automated threat intelligence feeds.

• Source: CISA Alerts, Jun 2025

Oklahoma Bans DeepSeek Due to Security Risks

Governor Stitt banned DeepSeek on Oklahoma state devices, citing data collection risks, regulatory non-compliance, and susceptibility to adversarial manipulation. The decision reflects growing scrutiny of AI platforms.

• Why It Matters: State-level AI restrictions are creating a complex compliance landscape for SLED technology procurement.

• Actionable Insights:

  • For Buyers: Establish approved AI platform lists and implement device-level blocking for prohibited applications.

  • For Sellers: Provide clear documentation of data handling practices and compliance with state security standards.

• Source: Oklahoma Governor’s Office, Jun 2025

Procurement and Partnerships

GSA Launches Revolutionary FAR Overhaul Initiative

The General Services Administration is leading a comprehensive Federal Acquisition Regulation overhaul, aiming to streamline federal contracting within 180 days. The initiative focuses on commercial solutions and eliminating outdated regulations.

• Why It Matters: This reform will transform how agencies procure IT, reducing administrative burdens and accelerating timelines.

• Actionable Insights:

  • For Buyers: Review procurement strategies to align with simplified FAR processes and prioritize commercial solutions.

  • For Sellers: Engage in the FAR public comment process and position commercial off-the-shelf solutions for rapid adoption.

• Source: GSA Blog, Jun 2025

Executive Order Prioritizes Commercial Solutions in Federal Contracting

Executive Order 14275 mandates procuring commercial products and services “to the maximum extent practicable,” requiring justification for non-commercial procurements within 60 days.

• Why It Matters: The commercial-first approach will speed up acquisitions and reduce costs through proven market solutions.

• Actionable Insights:

  • For Buyers: Conduct market research to identify commercial alternatives before pursuing custom development.

  • For Sellers: Emphasize commercial product capabilities and cost advantages over custom solutions.

• Source: Dentons Policy Alert, Jun 2025

SLED Procurement Modernization Accelerates

Despite reduced ARPA funding, SLED agencies are prioritizing procurement modernization, with 60% of 2025 contracts requiring sustainability benchmarks. States are establishing efficiency departments to optimize spending.

• Why It Matters: Budget constraints are driving SLED agencies to adopt solutions that deliver immediate efficiency and cost savings.

• Actionable Insights:

  • For Buyers: Develop sustainability criteria for RFPs and focus on technologies with clear ROI.

  • For Sellers: Offer flexible pricing models and eco-friendly certifications to align with SLED priorities.

• Source: GovWin SLED Market Analysis, Jun 2025

K-12 Schools Increase Managed Services Adoption

K-12 institutions are turning to Managed Services Providers to address IT infrastructure and cybersecurity challenges, driven by limited internal expertise and rising cyber threats.

• Why It Matters: Educational institutions need specialized support, creating opportunities for managed service providers in the SLED market.

• Actionable Insights:

  • For Buyers: Evaluate managed services for cybersecurity and network management to address internal capability gaps.

  • For Sellers: Develop education-specific managed services with budget-friendly pricing and compliance focus.

• Source: OneC1 Education Report, Jun 2025

Data Privacy & Protection

Eight New State Privacy Laws Create Complex Compliance Landscape

Eight new state privacy laws, including Delaware’s, Iowa’s, and Maryland’s, took effect in 2025, expanding consumer rights and imposing strict data governance obligations.

• Why It Matters: Fragmented regulations create compliance challenges for agencies and vendors operating across states.

• Actionable Insights:

  • For Buyers: Conduct data inventory assessments and require vendors to comply with state privacy laws.

  • For Sellers: Implement privacy-by-design architectures and state-specific compliance frameworks.

• Source: Duane Morris Alert, Jun 2025

New Jersey Implements Comprehensive Data Protection Requirements

New Jersey’s Data Privacy Act, effective January 15, 2025, grants consumers access, correction, deletion, and opting-out rights, including nonprofits and financial data in its scope.

• Why It Matters: New Jersey’s broad requirements may influence other states and federal privacy legislation.

• Actionable Insights:

  • For Buyers: Use New Jersey’s standards as a baseline for data protection across operations.

  • For Sellers: Develop data subject rights management systems to meet emerging state requirements.

• Source: Bloomberg Law, Jun 2025

Maryland’s Restrictive Data Privacy Approach

Maryland’s Online Data Privacy Act, effective October 1, 2025, imposes rigorous consumer protection requirements, setting a high bar for data processing and sales.

• Why It Matters: Maryland’s strict approach may shape federal privacy standards and procurement criteria.

• Actionable Insights:

  • For Buyers: Prepare for enhanced data protection requirements exceeding current federal standards.

  • For Sellers: Develop solutions meeting Maryland’s strict requirements to ensure compliance.

• Source: Bloomberg Law, Jun 2025

Federal Data Transfer Restrictions Finalized

The U.S. finalized rules restricting bulk commercial data transfers to China, Russia, and other nations, prohibiting genetic data transfers and mandating cybersecurity standards for vendors.

• Why It Matters: These restrictions reshape how agencies evaluate vendors and manage international data sharing.

• Actionable Insights:

  • For Buyers: Review vendor relationships for data transfer risks and enforce data localization.

  • For Sellers: Ensure data sovereignty and provide detailed data handling documentation.

• Source: BankInfoSecurity, Jun 2025

Government IT Modernization

Federal IT Modernization Accelerates with Cloud-First Strategies

Federal agencies spend $100 billion annually on IT, with 80% on legacy systems. Cloud-first strategies and AI integration are gaining momentum to replace outdated infrastructure.

• Why It Matters: Legacy systems create security vulnerabilities and inefficiencies, requiring urgent modernization.

• Actionable Insights:

  • For Buyers: Prioritize phased legacy system replacements with cloud-native solutions, setting clear ROI metrics.

  • For Sellers: Offer cloud-native solutions with migration services and measurable cost savings.

• Source: House Oversight Committee, Jun 2025

Hybrid Cloud Architecture Emerges as Government Default

Hybrid cloud is becoming the standard for agencies, balancing public cloud agility with on-premises security and compliance needs.

• Why It Matters: Hybrid cloud offers flexibility and scalability while meeting government-specific requirements.

• Actionable Insights:

  • For Buyers: Develop hybrid cloud strategies with consistent security policies and clear data governance.

  • For Sellers: Provide hybrid cloud solutions ensuring seamless integration and compliance.

• Source: Public Sector Network, Jun 2025

State IT Modernization Focuses on Efficiency and AI

States are navigating budget uncertainty with AI-powered automation and digital transformation, with 21 states establishing efficiency departments to optimize technology spending.

• Why It Matters: Budget constraints drive states to prioritize solutions with immediate efficiency and cost benefits.

• Actionable Insights:

  • For Buyers: Focus modernization on solutions delivering measurable efficiency gains.

  • For Sellers: Develop AI-powered solutions for citizen services and operational optimization.

• Source: StateTech Magazine, Jun 2025

Executive Orders Drive Federal Agency Transformation

Recent executive orders are reshaping procurement, data policies, and agency operations, directing rapid policy implementation across federal agencies.

• Why It Matters: Executive orders set immediate priorities, significantly impacting agency operations and procurement.

• Actionable Insights:

  • For Buyers: Align operations with executive order priorities and prepare for rapid implementation.

  • For Sellers: Adapt solutions to support new policy requirements and operational mandates.

• Source: NBCC Executive Orders Overview, Jun 2025

Closing

The pace of transformation in America’s public sector technology landscape continues to accelerate, driven by unprecedented investments in AI, cybersecurity, and modernization. From AI-powered veteran services to FAR reform, the opportunities for collaboration between government buyers and industry sellers have never been greater.

As we navigate new privacy laws, cybersecurity mandates, and procurement reforms, success depends on embracing innovation while maintaining security and accountability. The stories in this edition show that public-private partnerships can overcome challenges and deliver extraordinary results.

Your Voice Matters: Ever to Conquer thrives on your insights. Share your success stories, challenges, and solutions at [email protected].

Stay Connected: Subscribe to Ever to Conquer and join thousands of government leaders and industry executives driving progress. Forward this newsletter to colleagues who share our mission of advancing public sector innovation.