Smarter, safer and cost-effective solutions for the public sector

Localizing AI

A GOVERNMENT TECHNOLOGY THOUGHT LEADERSHIP PAPER

SPONSORED BY

AI has shifted from a feature of the future to a significant part of present-day reality. Yet many organizations face a fundamental challenge: Their infrastructure wasn’t designed for AI.

Traditional hardware strategies can no longer support the demands of real-time data processing, multimodal models and sensitive workloads.

“You just can’t bolt AI on as an afterthought, especially in our government environments,” says Bill Rials, a senior fellow for the Center for Digital Government. “AI requires a level of performance, acceleration and architecture that most of yesterday’s infrastructure simply wasn’t designed to deliver.”

Fortunately, advances in hardware design, localized AI and hybrid computing now make it possible for organizations of all sizes to benefit from AI. Workstation platforms optimized for AI make it possible to run sensitive workloads locally while reducing dependence on cloud-only architectures.

Why AI Must Move Closer to the User

While the cloud has value, it introduces significant challenges such as rising costs and compliance risks. For many workloads, deploying AI closer to the data itself is a better option.

Localized edge AI brings several advantages:

■ Safer data: Sensitive data such as student records, health information and licensing details never leaves the organization’s control. On-premises or edge processing reduces exposure.

■ More predictable costs: Cloud AI fees can escalate unpredictably as usage grows. Optimized workstations can help organizations shift to planned capital investments with predictable operating costs. “You can get a lot more cost certainty by running inference and these other workflows locally, as opposed to having to pay for those tokens in the cloud,” says Andy Parma, director of MNC workstation processors for AMD.

■ Better performance: Edge processing reduces latency, enabling faster decision-making in time- critical situations such as emergency response.

2

Key Trends Shaping Public Sector AI

Multimodal and agentic AI. Modern models can handle text, images, speech and video simultaneously, allowing for richer constituent interactions. Agentic AI enables specialized models trained for tasks such as permitting, traffic management or call center response.

Hybrid AI. The future is not cloud or local but rather both. Hybrid AI allows agencies to use the cloud for heavy training and leverage local workstations for inference and day-to-day workloads. This balance provides cost efficiency and reduces latency.

Workforce readiness. Agencies report that the lack of internal expertise remains a significant barrier. Yet many existing IT staff already have adjacent skills in geographic information systems, data analytics or business intelligence. Work with vendor partners to bridge the AI skills gap.

Governance and trust. Retrieval-augmented generation (RAG) and small language models help ensure AI responses are grounded in current regulations, policies and accurate local data.

To get these advantages, organizations must elevate their infrastructure with:

■ Purpose-built workstations: To meet the demands of modern AI, agencies need workstations and processors specifically designed for AI workloads.

■ Scalable memory: This capability allows large language models and AI workflows to run efficiently on lightweight laptops and compact desktops rather than being limited to data centers.

■ Dedicated AI engines: These are embedded directly into modern processor chips and accelerate AI data processes. They also improve real-time security functions and consume less energy. By investing in this type of AI-ready hardware, agencies avoid buying equipment that quickly becomes obsolete.

A Resilient AI Strategy Starts with Compute

Determining the right compute strategy for your organization can mean the difference between experimental AI pilots and enterprisewide transformation.

To get started, leaders should treat hardware as strategic investment. Rather than maintaining a “replace when it breaks” mindset, it’s essential to consider your computer hardware as foundational.

Plan ahead by selecting AI-ready workstations that can support today’s needs and tomorrow’s models. AI-ready CPUs give organizations a stable compute backbone that can expand from pilot deployments to scaled adoption.

Once you find the right hardware, take these steps:

1. Adopt a strong privacy and compliance posture. Organizations can maintain control of sensitive workloads by reducing risk while aligning with governance requirements.

2. Blend elements from cloud applications and on-premises capabilities. Exactly how they will complement each other depends on the needs of the individual organization. Balance local workstations, servers and the cloud for a cost- efficient and resilient system.

3

Fast and Effective AI Use Cases

1. Constituent engagement. AI-powered chatbots and voice assistants answer frequent questions.

2. Document and workflow automation. Scan records and contracts for relevant information only.

3. Transportation and public safety. Edge-based AI supports real-time traffic analysis.

4. Education. AI empowers education institutions to analyze student performance and tailor support.

3. Familiarize your staff with AI. Provide training and information for everyone, not just within specialized teams.

4. Kick off pilot applications. Start small by testing targeted use cases and measuring outcomes. Later you can expand incrementally across departments.

Conclusion

Organizations can adopt AI on their own terms by using edge AI, purpose-built workstations, and advanced processors. By investing in the right infrastructure, public entities can safeguard data, control costs and deliver services that meet the expectations of the people they serve.

Produced by Government Technology

Government Technology is about solving problems in state and local government through the smart use of technology. Government Technology is a division of e.Republic, the nation’s only media and research company focused exclusively on state and local government and education.

www.govtech.com

This piece was written and produced by the Government Technology Content Studio, with information and input from HP Z and AMD.

AMD is the high performance and adaptive computing leader, powering the products and services that help solve the world’s most important challenges. Our technologies advance the future of the data center, embedded, gaming and PC markets. We’re pushing the limits of innovation to solve the world’s most important challenges.

https://www.amd.com/en.html

©2026 e.Republic LLC. All rights reserved.

Sponsored by HP Inc.

HP Inc. is a technology company that believes one thoughtful idea has the power to change the world. Its product and service portfolio of personal systems, printers and 3-D printing solutions helps bring these ideas to life.

Explore AI Workstations for government: discover.hp.com/slgworkstationsamd

Learn about AI Workstations for education: discover.hp.com/hiedworkstationsamd

https://www.amd.com/en.html https://www.hp.com/us-en/home.html https://discover.hp.com/hiedworkstationsamd/?token=cbca2fce76