Why Business Leaders Are Helping To Build Government Trust With AI
Many governments have a serious trust problem. In the United States alone, public trust in the government has been low for decades—and as of 2024, only 22% of Americans claimed they trusted the government to do what is right 'just about always' (2%) or 'most of the time' (21%). But I believe this data has implications that extend beyond politics. The reality is that once citizens lose faith in institutions, this loss of trust can have a domino effect: Markets suffer, social stability erodes and business confidence wavers.
But here's what many people might be missing (or dismissing): AI agents, the new buzzword on the Silicon Valley block, aren't just transforming customer service in the private sector. Their practical use cases can include modernization at the governmental institution level—and the potential they offer runs deeper than what it seems to the naked eye.
The Real Cost Of The Trust Deficit
When zooming in on the numbers, the data tells a striking story. In a 2022 study by McKinsey, citizens ranked state and federal government services beneath most private sector services, including their experiences with airlines, banking and car insurance.
The truth is, people have come to expect Amazon-level services, but what they inevitably get is a dissatisfactory experience due to various factors such as lack of support, efficiency, helpfulness or even accessibility. The gap between expectation and reality continues to grow, driven by consistent innovation and improvements in the private sector that are disproportionate to change at the institutional level.
If you think about it, there are a lot of hidden costs and risks to this discrepancy: A lack of efficiency within governmental processes can cause a ripple effect of negative impact for businesses. Delayed permits risk stalling construction projects. Benefits backlogs can keep potential workers sidelined for extended periods of time. Immigration bottlenecks can thwart talent acquisition and team growth. In this climate, I believe the difference between a good and a smart business leader lies in their ability to recognize that supporting government service improvements can offer a real competitive advantage.
The AI Agent Advantage
Here's where it gets interesting. Today's AI agents aren't the rule-based chatbots of yesterday. They're quickly evolving into sophisticated systems that can mimic reason and empathy and adapt in real time, thanks to the large language model (LLM) gold rush.
They're also starting to deliver impact in areas where the government has struggled for decades: genuine human connection at scale. And I am not just stating hypotheticals here—there are real-life use cases for AI agents actively being tested as we speak. The U.K. government's "Humphrey" AI suite, for example, is supporting employees by allowing them to focus on what humans do best—building relationships and solving complex problems. Early results have shown that government teams have been able to save one hour of admin tasks per hour-long meeting with this system, which signals the potential for massive efficiency gains while maintaining the human touch.
The Executive Perspective
There are a number of ways that next-gen business leaders can lean into this potential opportunity:
• Partner with governments on AI initiatives to help shape favorable regulatory environments.
• Invest in startups and ventures that spearhead empathy-driven design for governmental use cases.
• Advocate for digital transformation in your local jurisdiction.
By helping your government serve citizens better, you can help create a positive feedback loop where your effort input leads to more engaged communities, more efficient regulatory processes and a more robust environment for your enterprise to thrive and evolve.
You can also allocate internal resources to governmental support by creating dedicated government relations roles focused specifically on digital transformation opportunities. Companies like Amazon and Microsoft have already committed billions to government AI partnerships—not as corporate social responsibility or charity, but as strategic investments with a long-term impact expectation.
Considering The Risks
It would be naive to assume that innovation at this scale comes without challenges. The list of concerns—including privacy, algorithmic bias and the risk of over-automation—are real and tangible. They are surmountable, but I believe the best way to tackle them is through systematic, scalable approaches that focus on sustainability and long-term building.
It's also important to operate with the understanding that AI augments human empathy rather than replacing it. I expect the most successful implementations we will see in the next few months will be those that combine tech with genuine human judgment and relationship-building, creating experiences that feel both efficient and authentic.
Here are three specific risk categories to keep an eye on:
1. Regulatory Backlash: Poorly implemented AI systems can create a negative loop of more restrictive policies that could stifle innovation down the line.
2. Public Relations Disasters: Biased algorithms can damage the reputation of both the government and the businesses involved, exacerbating lack of trust from the citizens.
3. Competitive Disadvantage: Companies that fail (or are slow) to adapt to AI-enhanced government expectations could ultimately be outrun in the race.
I've found that the best way to mitigate these risks is to proactively plan for them. Establish an AI ethics board with experts dedicated to government relationships; invest in bias detection infrastructure; and maintain transparent communication about AI deployment across your media.
By spearheading and serving by example when it comes to responsible AI standards, you can position your company to have a competitive advantage when greater regulation inevitably arrives.
Making The Most Of Timing
This transformation is happening faster than most executives realize. The Capgemini Research Institute reports that about 64% of public-sector organizations worldwide are already exploring or deploying generative AI, and 90% plan to pilot or implement advanced 'agentic' AI systems in the next two to three years. I believe that in less than a year, the ability to drive AI conversations with the government will no longer be a competitive advantage—it will be table stakes. By beginning your efforts now, while the technology is still evolving and implementation is in its early stages, your company can help shape the standards and expectations of business-government relations for the next decade.
Here's the bottom line: Governmental institutions are overdue for a modernization push due to large-scale public dissatisfaction, and empathetic AI agents are a major business opportunity. Companies that help close the trust gap between citizens and institutions can help ensure their organizations can operate in more stable, predictable environments.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
Meta Platforms (META) Price Target Raised by Bernstein on AI and Ad Growth
Meta Platforms Inc. (NASDAQ:META) ranks among the . Bernstein analyst Mark Shmulik maintained his Outperform rating on Meta Platforms Inc. (NASDAQ:META) and increased the stock's price target from $700 to $775 on July 22. According to Bernstein's research report, the price target hike highlights Meta's status as 'a clear AI winner,' with positive advertising checks bolstering the company's claims of increasing ad success. The introduction of WhatsApp ads and the ongoing robust increase in Threads adoption have supported Meta's prospects for revenue growth, allaying earlier worries about declining returns on time spent growth. Though it acknowledged the existence of short-term concerns regarding the company's capacity to finance AI infrastructure while preserving free cash flow and earnings per share, Bernstein identified a number of long-term growth drivers for Meta Platforms, Inc. (NASDAQ:META) beyond 2025, including wearables, business messaging, generative AI ad creative, and Meta AI. Meta Platforms, Inc. (NASDAQ:META) is a renowned technology company known primarily for its flagship platforms Facebook, Instagram, and WhatsApp, as well as its revolutionary advances in augmented reality (AR) and virtual reality (VR). While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
6 minutes ago
- Yahoo
Trump ramps up pressure on the Fed to slash rates to 1% — but would that be risky for US jobs, savings and investments?
Despite President Trump ramping up pressure on Federal Reserve Chair Jerome Powell to cut interest rates, the Fed held rates steady at 4.25% to 4.5% on Wednesday, July 30. Trump has been insistent on a major cut all the way down to 1%. Those who support the idea argue that a lower rate would reduce borrowing costs for consumers, mortgages, auto loans and corporations. Governors Michelle Bowman and Christopher Waller voted against the rates, the first time since 1993 that multiple governors voted against a rate decision. But critics, including economists, former Fed officials and business leaders, warn that such heavy-handed interference in monetary policy could backfire, risking higher inflation, market instability and long-term damage to the Fed's independence. Here's what Trump's push could mean for your job prospects, investments and savings, and why experts say it's not that simple. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it What experts say a Fed rate cut could mean for your wallet While Trump is pressuring the Fed to slash the federal funds rate, some experts argue that bond yields are far more important to the broader economy. In an interview with Fox Business earlier this year, Treasury Secretary Scott Bessent said the administration is paying closer attention to the 10-year Treasury yield, not the fed funds rate. That distinction matters. The Fed funds rate primarily affects short-term borrowing — like credit cards and personal loans. But long-term borrowing, including mortgages and auto loans, is more closely tied to the yield on government bonds. For example, over the past year, even as the Fed cut its policy rate from 5.5% in September 2024 to 4.5% by August 2025, mortgage rates didn't follow suit. That's because bond yields have climbed, pushing borrowing costs higher, according to The Wall Street Journal. In fact, many economists warn that if the Fed cuts rates too quickly, bond yields could rise even further, potentially driving up mortgage rates and undermining the very goal of making borrowing cheaper. Capital flight and higher inflation In an interview with the Harvard Gazette, Daniel Tarullo, Nomura Professor of International Financial Regulatory Practice at Harvard Law School and former Federal Reserve governor, warned that Trump's efforts to pressure or potentially remove Fed leadership could be deeply counterproductive. He argues that bond yields and investor confidence are shaped by the belief that the central bank will act independently and responsibly, and that ndermining that independence could have serious consequences. The Harvard Gazette reported on the subject in April, saying 'What markets fear is that if a president removes the chair or other members of the Board of Governors, it would be with the intent of having a looser monetary policy. At that point, the markets' trust in the central bank will be substantially undermined, and thus, the central bank's credibility as an inflation fighter will be undermined. Longer-term interest rates will then rise, probably dramatically.' A similar scenario played out in Turkey, where President Recep Tayyip Erdoğan repeatedly pressured the country's central bank to cut rates against economic advice. According to the American Enterprise Institute, the result was a collapse in the value of the Turkish lira and a surge in inflation. In the U.S., there are multiple layers of protection in place, including institutional norms and legal safeguards, that make it difficult for any president to unilaterally reshape Fed leadership or monetary policy. But experts say the pressure alone can still erode market confidence. Read more: Nervous about the stock market in 2025? Find out how you can What comes next? With Powell's term as Fed chair set to end in May 2026, investors and consumers will see a change in leadership at the central bank in the not-too-distant future. Trump will have the authority to nominate a new chair or choose to re-nominate Powell, and the nominee must be confirmed by the Senate. Still, a new chair wouldn't have the power to set rates alone. The federal funds rate is determined by the Federal Open Market Committee (FOMC), which includes the chair, six Fed governors and 12 regional Federal Reserve bank presidents. 'There's no question that the chair is far and away the most important individual on the FOMC,' Tarullo says. 'But it's not the case that the chair can simply dictate what policy is going to be and the rest of the FOMC will fall into line.' For consumers, experts say the takeaway is more complicated than it might seem. While aggressive rate cuts could reduce borrowing costs in the short term, economists warn they could also lead to higher inflation and long-term instability, especially if the Fed's independence is weakened. In their view, unless inflation cools or the economy slows, rates on mortgages, credit cards and auto loans are unlikely to drop significantly anytime soon. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 minutes ago
- Yahoo
Broadcom (AVGO) Stock Rated Buy by Goldman Sachs on AI and M&A Strength
Broadcom Inc. (NASDAQ:AVGO) ranks among the . On July 10, Goldman Sachs began coverage of Broadcom Inc. (NASDAQ:AVGO) with a Buy rating and a $315 price target. The investment bank pointed to Broadcom's long-term merger and acquisition strategy, which has allowed it to establish a strong franchise position across many infrastructure software areas. According to Goldman Sachs, Broadcom Inc. (NASDAQ:AVGO) will continue to dominate the enterprise networking silicon market and use this advantage to gain the lion's share of custom silicon processors for major hyperscalers in the United States. According to the firm, by 2026, artificial intelligence will account for more than 40% of Broadcom's operations, while the company's core infrastructure software division continues to produce consistent, increasing profitability. Broadcom Inc. (NASDAQ:AVGO) is a multinational semiconductor company specializing in the design, development, and distribution of a wide range of products. While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None.
