Digital Transformation: Modernising Government IT Systems

Digital Transformation: Modernising Government IT Systems

This opinion piece is part of Access Partnership’s  ‘A Digital Manifesto’  initiative, which recommends a framework to develop US global leadership on digital policy for the first 100 days of the Trump administration. 

On 7 April, the White House Office of Management and Budget (OMB) issued two memoranda with revised policies on how federal agencies should acquire and adopt artificial intelligence (AI), in accordance with President Trump’s January AI Executive Order.

These memoranda represent the administration’s first binding AI policy measures and reflect its commitment to accelerate the use of AI across the federal government by eliminating agency requirements that could hinder or delay adoption.

Their successful execution will first require a smooth transition out of legacy IT systems. Indeed, according to a March 2025 report by the US Government Accountability Office (GAO), the US federal government spends over USD 100 billion each year on IT, yet continues to rely on outdated systems that risk impacting essential services such as student aid, veterans’ healthcare, and air traffic control.

The report concludes that this persistent legacy IT gap can undermine public trust and risks exposing mission-critical infrastructure; simply put, legacy systems are likelier to hinder service delivery, drive up operational costs, and heighten cybersecurity risks.

In this context, the Trump administration’s second term has an opportunity to focus on digital transformation, with the goal of modernising government IT systems to boost efficiency, improve service delivery, and incorporate security-by-design.

Thus, the government’s AI-focused digitalisation strategy will necessitate the implementation of a solid approach that emphasises interoperability, cost efficiency, and resilience.

Three Pillars for a 21st-Century Federal Government

To realise meaningful reform, the federal government should focus its efforts around three core pillars of digital transformation.

1. Prioritise Cloud Migration and Interoperability

Federal agencies currently rely on a mix of IT systems that are often isolated, antiquated, and costly to maintain. The Trump administration can adopt a more streamlined approach that puts government efficiency at the heart of planning and implementation:

  • Mandate cloud-first policies: Require agencies to transition legacy systems to the cloud within a specified timeframe, backed by dedicated federal funding.
  • Adopt interoperability standards: Ensure that Federal systems can easily share data, minimising redundancies and improving collaboration among agencies.

2. Embed Security-by-Design Across Federal IT Infrastructure

The rapid growth of AI and digital transformation has revealed evolving cyber-threats and vulnerabilities in government systems. In this context, cybersecurity needs to be prioritised as a fundamental aspect of national security.

  • Zero-trust architecture (ZTA) as the Federal standard: All agencies can be required to implement a zero-trust strategy, which involves continuous authentication and monitoring.
  • AI-driven threat detection: AI can be used to identify anomalies in government networks in real time, helping to address potential cyber-threats before they escalate.
  • Cyber-resilience stress-testing: Regular cybersecurity audits and red-team exercises can be conducted across Federal agencies to pinpoint vulnerabilities.

3. Transform Public Service Delivery with Digital Identity and AI

Many government services still rely on paper, creating challenges for both citizens and businesses. A comprehensive digital identity system across the government, combined with AI-driven automation, can transform public service delivery:

  • Develop a federal digital identity system: A secure, privacy-focused digital ID can facilitate access to government services, minimising fraud and inefficiencies.
  • Automate administrative processes: AI-powered chatbots and process automation can help alleviate bureaucratic backlogs and enhance response times for services such as social security, healthcare, and tax filings.
  • Expand mobile government services: Adopting a mobile-first strategy ensures that citizens can access essential government services anytime and anywhere, reducing the need for in-person visits.

The Need for Clear Federal Leadership

Recent actions, including the guidance from the OMB, the forthcoming AI Action Plan, and the House Energy and Commerce Committee’s renewed push for a federal comprehensive privacy law, will move the needle forward in the fragmented U.S. policy landscape – but much more can be done.

The Trump administration has the chance to make a significant impact on the efficiency and effectiveness of federal government services. With strong leadership and purposeful investment in areas such as those outlined above, the US can establish a digital transformation framework that propels  innovation forward over the next four years.

At Access Partnership, we work closely with government stakeholders to design effective, forward-looking digital transformation strategies, and we partner with businesses across the private sector to shape regulatory frameworks that enable innovation while safeguarding users. If you’re interested in how we can support your digital transformation journey, please contact Jonathan Gonzalez at [email protected].

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