Tennessee is advancing its use of Agentic AI—a technology that allows for proactive problem-solving—in state government operations, notably in payroll and procurement systems. Kristin Darby, the state’s Chief Information Officer (CIO), aims to transition the technology from concept to execution in 2026, focusing on the practical implementation of AI rather than just its theoretical aspects.
In a recent interview, Darby discussed the state’s Request for Information (RFI) for a new enterprise resource planning (ERP) system. This RFI specifically requires vendors to integrate “native AI architecture” into the core of the platform, emphasizing the need for systems that are “extensible, secure, and auditable.” The goal is to create AI solutions that can identify anomalies in payroll, flag procurement bottlenecks, surface compliance risks, and even detect potential fraud, thus reducing the need for human intervention.
However, Darby pointed out that AI’s autonomy must be carefully managed within government frameworks. She stated, “Any system with that kind of power has to be bounded and auditable.” The RFI mandates features that ensure explainability and an auditable chain of thought, allowing for compliance and oversight. She stressed that the implementation of such technologies aims not to replace employees but to transform their roles, allowing them to focus on human judgment and decision-making rather than routine data entry.
The state is working to integrate AI into its normal workflows, marking a shift away from treating it as a standalone tool. Darby noted that 2025 was dedicated to establishing guardrails and a shared language around AI, while 2026 will see those frameworks put into practice. Importantly, she emphasized that the state’s AI strategy must connect to measurable value, aligning with broader goals of improving outcomes rather than deploying technology for its own sake.
Beyond AI, Darby highlighted Tennessee’s modernization efforts, such as the recent launch of the unemployment insurance system in late 2025. Other ongoing projects include updates to the offender management and child welfare systems, both set for completion in 2026. The former is expected to go live in October, while the latter is planned for this summer. Darby acknowledged that successful modernization entails navigating change management challenges that extend beyond technological solutions, emphasizing the need to address entrenched policies and procedures.
As Tennessee expands its utilization of AI and cloud-based systems, cybersecurity will be woven into the fabric of every project. Darby affirmed, “Cybersecurity should be at the table in the beginning—not a gate at the end.” This proactive approach has led to changes in system evaluation and design, including the use of preapproved design patterns for AI and cloud deployments, along with tailored risk tiers.
The state is committed to a cloud-first strategy, but Darby noted the importance of pragmatism in implementation. Certain workloads, including low-latency systems and specialized healthcare technologies, may still be better suited for on-premises deployment. The emphasis remains on achieving consistent outcomes across different environments, focusing on standardized security controls and avoiding vendor lock-in.
Darby reiterated that small, incremental changes will not suffice to drive the next phase of government technology in Tennessee. She characterized the current moment as an “inflection point,” where states that think “exponentially, not incrementally” will be poised to advance. This transition, she believes, involves redefining the role of government itself, with a vision for a future where governmental operations become “predictive versus reactive,” enabling faster measurement of policy impacts and fostering the development of innovative service models.
See also
India AI Impact Summit 2026: Pioneering Inclusive Innovation for Global Development
Fayetteville School Board Unveils Ambitious AI Strategy to Transform Education Standards
Germany”s National Team Prepares for World Cup Qualifiers with Disco Atmosphere
95% of AI Projects Fail in Companies According to MIT
AI in Food & Beverages Market to Surge from $11.08B to $263.80B by 2032
