The AI Tipping Point: What Public Sector Leaders Need to Know for 2025

AI is proving that it’s here to stay. While 2023 brought wonder and 2024 saw widespread experimentation, 2025 will be the year that the public sector gets serious about AI's applications. But it’s complicated: AI proofs of concept are graduating from the sandbox to production, just as some of AI’s biggest cheerleaders are turning a bit dour.
How to navigate such a landscape is top of mind for me and top executives such as Snowflake’s CEO, Sridhar Ramaswamy; Snowflake’s Distinguished AI Engineer, Yuxiong Xe; and other industry-specific experts who weighed in on the “Snowflake AI + Data Predictions 2025” report. From operationalizing AI to rewriting your leadership skill set, we’re predicting what an AI-accelerated future might look like (and what might happen if organizations don’t get their foundational data strategies in place to be part of it).
Our industry's reputation for lagging in digital transformation isn't unfounded. However, this very characteristic might just be our golden ticket when it comes to generative AI. There's an ongoing shortage of IT and data science professionals across the public sector — namely in federal civilian, national security and education. AI's promise to help nontechnical staff work with data may solve our problems.
For the rest of the public sector predictions and more, download the report “Snowflake AI + Data Predictions 2025.”
Prediction: AI's biggest impact on national security will be drones and simulations
AI is revolutionizing military tactics, particularly in the realm of drone technology. It might seem counterintuitive at first, given that drones are hardware, but the software aspect is where AI truly shines. In the coming year, we'll witness AI enabling drones to operate with greater autonomy, enhancing data analysis capabilities for the vast amounts of information these unmanned vehicles collect and much more. As generative AI continues to advance, we can anticipate increasingly sophisticated applications of AI-powered drones in military operations.
One of the most significant challenges in national security is preparing for the unknown. While simulation isn't a new concept, the support of advanced computing capabilities and AI-powered training programs certainly is. In the past, we had to rely on traditional methods to train our personnel. There was simply no way to realistically simulate scenarios such as full-scale wars, complex economic engagements or cyberattacks on critical infrastructure. However, with today's technology, we can run these types of simulations with unprecedented realism and detail.
The synthetic data generated from these simulations — representing everything from economic models to traffic patterns and weather systems — will play a crucial role in informing future national security decisions. This ability to model and analyze complex scenarios in a risk-free environment is transforming how we approach national security strategy and preparedness.
As one of the largest collectors of data globally, public sector organizations face unique challenges in maximizing data’s potential. Join Matthew Rose, Snowflake’s Industry Principal for the Public Sector, Erica Reuter, Snowflake’s Director of Public Sector Engineering, Brandon Pugh, Director of R Street Institute and Marci Harris, CEO and Cofounder of Popvox for the Public Sector AI + Data Predictions event. We’ll discuss what to expect regarding simulation for national security, education technology support for the holistic student lifecycle and the ways in which data ownership and privacy can reshape government-citizen relationships.
If you’re not able to join us, read the full report for the rest of my 2025 public sector predictions, insights from six other industry leaders and the latest big-picture data and AI forecasts from leaders such as Baris Gultekin, Snowflake’s Head of AI, and Brad Jones, Snowflake’s Chief Information Security Officer.