Maryland is turning to artificial intelligence (AI) as part of an effort to improve government services and operations.
State officials have partnered with two private firms to use AI in areas that improve government services, including benefits administration, housing reviews and internal cost savings.
Under the partnership, one firm will provide access to its Claude AI models and technical expertise, while Percepta will supply engineering support to help agencies develop and deploy AI-powered tools. Together, the goal is to identify, develop and implement practical applications for government services.
The Maryland Department of Information Technology’s AI Innovation Lab will bring together these AI models to provide a secure environment for state agencies to test new ideas before deploying them. The lab will also offer training for agencies using the AI models and help transition pilot projects into working systems.
Among the work of the Innovation Lab is a collaboration with the Rockefeller Foundation to address issues such as child poverty and housing access. Another focus is helping state agencies improve efficiency and reduce costs. One example is the Department of Budget and Management’s use of an AI agent to help fleet drivers find the most practical and cost-effective vehicle service options. The agency expects the system to save more than $1 million a year.
The AI Innovation Lab is tied to the Maryland Benefits platform, known as MD Benefits, which provides residents digital access to state services such as Medicaid, Medicare assistance, SNAP and WIC. State employees with AI expertise will oversee the lab.
Maryland’s effort comes as states across the country continue exploring how artificial intelligence can be integrated into government operations and oversight. Delaware recently approved an “agentic AI sandbox” for testing new AI tools under state oversight, while Utah has set up an AI policy office and learning lab to help shape how the technology is used in government. Texas has also begun setting rules and guardrails for how AI can be used in state agencies as it looks toward broader deployment. Maryland’s approach is more operational, focusing on putting AI to work inside state agencies to improve services like benefits administration, housing access and permitting.
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