In government healthcare, AI is the tool, not the point

Agencies are no longer buying buzzwords. They’re buying outcomes.

Speaking from my own time in public service: no one enters government healthcare to build chatbots. We show up to lift communities, protect health and deliver real help to real people, not to replace the care and compassion that residents deserve.

Today, if we want to keep doing that work, we need to welcome new ideas that strengthen service without losing what matters most. Technology has an important role to play. But it’s the tool, not the point.

The stakes are real

 More than 80% of Americans believe that the government does not provide great customer service. Those challenges are especially prevalent in the government healthcare space.   

Even with strong satisfaction overall, Medicaid and Medicare programs still face real challenges. KFF found that Black and Hispanic Medicaid enrollees are 10–15% less likely to feel very satisfied with their care compared to White enrollees. Access to mental health services also remains a concern, with about 40% of Medicaid beneficiaries reporting trouble getting timely support, according to MACPAC. Care coordination is another friction point, with only 63% of Medicare beneficiaries reporting that their providers always communicated well with one another, according to a CMS Medicare CAHPS Survey (pdf).

Technology gaps make it harder for some residents to get the care they need. ASPE reports that one in four Medicaid enrollees skipped telehealth appointments because of poor internet access or device issues. And for people who lose and rejoin Medicaid within the same year, only 58% said they were satisfied with the re-enrollment process, showing there’s still work to do to make coverage more stable and accessible.

And poor experiences chip away at something much harder to rebuild: trust.

If we’re serious about serving residents and preserving the public’s confidence, modernization isn’t optional. It’s urgent. But it must be done carefully, with the resident experience at the center of every decision.

Technology alone isn’t the answer

Budgets are tightening. Expectations are rising. And federal pressure is pushing government healthcare agencies to do more, faster and often with fewer hands on deck. In this environment, standing still isn’t an option. But moving forward without care isn't either. If we don't evolve carefully, thoughtfully and humanely we risk more than inefficiency. We risk the trust that is the foundation of every good public service. Every new idea must meet a test: Does it make life easier, not harder, for the people who depend on us?

What’s changing: budget pressure is beating technology fears

A few years ago, even mentioning AI could stall a government RFP. Today, the conversation has shifted. Leaders aren’t asking if they should use the technology. They’re asking how to use it wisely in ways that protect the resident experience.

In the government healthcare space, leaders are asking better questions, too:

• Where are the savings?
• Where are the service improvements?
• How are we reaching and providing access to the most vulnerable?

At Conduent, we believe modernization should never come at the cost of connection. Our teams and public policy experts are committed to helping agencies build a no wrong door experience, ensuring every resident can get the help they need, through the channel that works best for them.

For example, we recently helped a state agency modernize its eligibility services with the BenePath® Self Service Portal, supporting nearly three million residents. In just eight months, the portal enabled over 180,000 account creations while streamlining service delivery across Medicaid, SNAP and TANF programs.

Here’s the approach we see working best:

• Start with people.
  Design every service around the simple promise: residents can always reach a real, caring person when they need to.
• Deflect wisely.
  Use automation thoughtfully to handle simple, straightforward needs so human time and attention stay focused where they matter most.
• Build trust in steps.
  Small wins matter. Every smooth interaction, every faster resolution, every clearer answer lays a stronger foundation for change.
• Avoid big-bang overhauls.
  Disruptive, all-at-once transformations rarely succeed. The smartest path forward is to modernize the way we build trust: one real, thoughtful step at a time.

What agencies want now (and what vendors must deliver)

 Today’s standard is higher, and that’s a good thing. It’s not enough to promise modernization. We must prove it works: 

• Show the impact on staffing.
• Show faster, easier resolutions for residents.
• Show year-over-year cost savings and service gains.

States aren’t buying buzzwords anymore. They’re buying outcomes and the partners who can deliver them.

Case in point 

To help government agencies better serve residents, one of our dedicated call centers provides bilingual customer support for a range of public assistance programs, managing more than 200,000 calls each month.

By resolving most issues on the first call, reducing wait times and expediting fraud and reinstatement cases, we help residents access critical benefits faster and with less frustration. Our team maintains a 20% transfer rate, outperforming industry standards while consistently exceeding 95% quality benchmarks, ensuring residents receive clear, compassionate and efficient service when they need it most. With real-time reporting tools and over 25 years of experience, our focus is helping agencies strengthen trust, improve health and financial outcomes and deliver better experiences for every individual they serve.

The bottom line

Modernization done right isn’t about technology. It’s about helping residents to be contributing members of their communities via the tax base while trying to care for their families. The best technology doesn’t replace human service. It protects it. It lifts the burden from overwhelmed workers.
It gives residents back their time and their trust.

Because at the end of the day, great service isn’t about how smart the system is.
It’s about how seen and supported people feel when they use it.