Hobbs proposes government efficiency plan, leaning on AI

Democratic Gov. Katie Hobbs released a government efficiency plan on Tuesday which seeks to reduce state spending, in part by embracing artificial intelligence.

Hobbs claims her “Arizona Capacity and Efficiency Initiative” will save the state at least $40 million and possibly up to $100 million.

She announced the ACE program idea in her state of the state address in January. Hobbs’ proposed state budget also outlines the details of the program, but the projected savings aren’t factored into her spending proposal.

“Every dollar lost to redundant contracts or technology is a dollar taken away from schools, roads, public safety, and ultimately Arizona families. We are making government work better for the people of Arizona,” Hobbs said in a statement.

The plan will be run with leftover COVID-19 funding from the American Rescue Plan Act.

The program centers on buying government tools in bulk to get discounts and ultimately spend less and standardizing technology to get rid of redundancies.

“Agencies independently purchase similar IT tools, leaving seats unused or underutilized, and creating duplication and redundancy,” the governor’s budget summary states.

Lastly, the ACE program will ensure the state utilizes new technologies like AI.

In a statement, Hobbs said incorporating AI into state agencies will improve employee productivity.

The program is reminiscent of Republican efforts over the last few years on the state and federal level.

GOP state lawmakers created their own version of the federal Department of Government Efficiency in late 2024 to eliminate “waste, fraud and abuse” in state government.

The program will operate out of the state Department of Administration.