AI Needs a Quarterback: The case for AI leadership just got stronger after OMB’s latest guidelines

The Office of Management and Budget’s newly released memo, "M-25-21: Accelerating Federal Use of AI through Innovation, Governance, and Public Trust," has drawn a bold line in the sand: the era of experimental AI in government is over. The era of accountable, strategic AI has begun.

One of the most consequential mandates in this federal guidance is the requirement that every federal agency must designate a Chief Artificial Intelligence Officer (CAIO) within 60 days. This official is charged with leading not just AI adoption, but also governance, risk management, and workforce development. It’s a decisive step toward clarity and accountability — and one that state governments should emulate without delay.

At the NASCIO 2024 annual conference, some voices questioned the need for AI leadership, such as a Chief AI Officer, suggesting it could introduce unnecessary bureaucracy. But that perspective runs counter to what the White House and OMB now expect from federal agencies — and, by extension, what the public will soon expect from all levels of government.

Just as States Modeled Their AI Plans on the Biden Executive Order, Should They Follow the Current Federal Playbook?

Georgia has already moved in this direction by launching an Innovation Lab — a collaborative space where agencies and industry partners can develop and pilot high-impact AI use cases. Georgia also established an AI advisory council to ensure public-sector innovation is both responsible and accountable.

But even with these forward-thinking efforts, one principle is clear: when everyone is responsible, no one is accountable. That is why it is important for states to appoint AI leadership. The role could be a Chief AI Officer or Advisor, but the mission of ensuring a unified vision, consistent standards, and measurable impact is critical.

The new OMB guidance lays out a detailed framework for AI governance, innovation, and transparency. Here's how it applies to states:

• Appoint a CAIO: Federal agencies must name a Chief AI Officer in 60 days. This isn't a symbolic title—it’s a signal that AI leadership must be empowered to coordinate, guide, and govern across the organization.

• Establish an AI Governance Board: Within 90 days, agencies must have an internal board that coordinates AI oversight. In states, this mirrors the need for centralized governance of agency-level initiatives to ensure alignment and risk mitigation.

• Publish Use Case Inventories: Transparency is non-negotiable. Federal agencies will publish annual inventories of AI use cases. States should do the same to build public trust and share what works.

• Implement Risk Management Standards: High-impact use cases must undergo rigorous risk assessments, impact testing, and ongoing monitoring. This isn’t red tape—it’s how governments ensure AI serves people fairly and reliably.

• Create a Generative AI Policy: With 270 days to develop policies on GenAI, agencies are being tasked with setting clear guardrails. States face the same pressure to guide responsible use while preventing unintended harm.

• Invest in Workforce Development: OMB has made it clear: an AI-ready workforce is a top priority. States should follow suit with upskilling programs, new talent pipelines, and training at all levels.

• Ensure Human Oversight and Appeals: AI may accelerate decisions, but humans must remain accountable. States must ensure due process, user accountability, and public input mechanisms.

  This is more than compliance — it’s about leadership. And leadership starts with a leader who owns the vision and drives execution.

Georgia is Leading — and the Role of a CAIO Is Central to Success

Georgia’s AI Lab isn’t just a technology sandbox — it’s a proving ground for how we will responsibly implement and scale AI across government. That effort is being led by the Georgia Technology Authority’s Office of Artificial Intelligence, and the success of this initiative depends on clear, empowered leadership — a role that can’t be split across teams or hidden behind committees, and fostered partnerships.

The state is also forming AI advisory councils to bring in cross-sector perspectives. But these councils need a quarterback — a CAIO — who can align ideas, steer policy, and ensure pilots become impactful at scale.

How Should States Respond?

 If the federal government is mandating every agency appoint a Chief AI Officer, maintain AI inventories, manage risk rigorously, and foster an AI-ready workforce, why should states aim lower?

AI is a team sport — but every team needs a quarterback. The OMB guidance doesn’t just recommend naming a CAIO, it mandates it. Why? Because central leadership is the only way to turn potential into actions, and experiments into policy.

As Georgia continues to build a model AI ecosystem, our commitment is clear: accountability drives innovation. And accountability starts with leadership.

Isn’t it time for every state to follow suit?

Related to: 

• Thought Leadership