AI in HR for State & Local Government: A Beginner’s Guide to Smarter Recruiting

by NEOGOV on May 21, 2025

In response to growing pressure on the public sector, many agencies are turning to artificial intelligence (AI) for support for their recruitment efforts—and seeing success.

But if you’re not a tech expert, how can you effectively and ethically incorporate AI into your workflow?

This beginner’s guide explores how AI in HR can upgrade public sector recruiting by reducing time-to-hire and improving both candidate and employee experiences. Readers will learn practical ways to implement AI in HR and understand key considerations for ethical and compliant adoption. Whether you're new to AI or just looking to refine your approach, this guide provides a roadmap to modernizing recruitment in state and local government.

 

Article Highlights

 

How AI Can Improve Public Sector Recruiting

The goal of AI in HR is not to replace people on your team. Instead, AI should be used as a tool to make their jobs easier. How?

1. Automate Job Postings and Candidate Sourcing

The first step toward better recruiting is getting your job opening in front of the right people. Automated solutions like Candidate Relationship Management (CRM) systems combined with AI can analyze your job descriptions and automatically post them across multiple platforms where qualified candidates are already looking. NEOGOV’s Attract is a perfect example. This purpose-built CRM is human-driven and provides automation options that complement AI usage, where your jobs post to platforms like GovernmentJobs.com—and automatically get in front of 2.7M job seekers. Even better, these solutions can help source passive candidates on public sector hiring platforms by scanning resumes to identify individuals with the right skills even if they haven’t applied yet.

Automation like this saves time and expands your agency’s reach beyond commonly searched talent pools. Recruitment marketing tools supplemented by AI can target specific niches—like former federal employees, mid-career switchers, or private-sector professionals with transferable skills.

 

2. Enhance Resume Screening and Candidate Matching

Manually sorting through application after application for every job opening at your agency is slow and delays the hiring process. According to the Society for Human Resource Management, AI-supported HR tools can significantly reduce time-to-hire by automatically screening resumes, scoring applicants based on required qualifications, and matching them to the roles that best fit their experience.

How can you integrate automation into your screening process? Platforms like NEOGOV’s Insight offer built-in automation to help HR teams prioritize the most qualified candidates by applying structured evaluation criteria and customizable scoring designed by you. This greatly reduces administrative work while maintaining transparency and consistency across every stage of candidate review.

These automated systems can help you make better hiring decisions, too—not just faster ones. AI-assisted screening systems don’t get tired or distracted, and they help reduce unconscious bias by applying consistent criteria (determined by you) to every candidate. With human oversight, these programs can help your team make quicker, more objective decisions and reduce the chance of overlooking qualified candidates.

 

3. AI-Powered Interview Processes

Scheduling interviews is another challenge for HR teams that can eat up valuable time. AI tools can help by automating scheduling—and some private-sector employers even give an entirely-AI interview as a first-step in the selection process. These systems use natural language processing to assess initial interviews and can narrow your field of candidates to only the most-qualified.

Later in the process, your HR team can perform AI-assisted interviewing with programs that provide questions designed specifically for your open role. Additionally, emerging AI notetaking programs can automatically document and analyze candidate responses in real time—so you don’t forget anything important.

 

4. Workforce Planning and Predictive Analytics

AI in HR doesn’t stop at hiring. It can also enhance public sector workforce planning. Predictive analytics tools can analyze employee data to forecast future hiring needs, identify skill gaps, and support succession planning—before a staffing crisis occurs.

For example, AI can track turnover trends, identify departments with rising attrition risks, and help HR leaders make proactive decisions. Agencies can also use AI to model different workforce scenarios—like budget changes or policy shifts—to understand how these factors might affect future staffing requirements.

Paired with human insight, predictive analytics becomes a powerful workforce planning tool. This combination can move agencies from reactive hiring to proactive strategy, helping them time recruitment efforts more effectively, justify budget requests with data-driven forecasts, and make the case for training or upskilling initiatives based on emerging needs. AI can’t replace human expertise and decision-making, but it can make the process easier and more effective.

 

5. Improving Candidate and Employee Experience

AI in HR also improves the recruiting experience for job seekers—which is important for public agencies competing against private sector employers. How can it set your public agency apart? To start, AI chatbots can answer questions about open roles, application status, and benefits 24/7, reducing calls and emails to HR. Your agency can also set up AI-personalized messaging and automated follow-ups to keep candidates engaged, even when the hiring process is long.

Once hired, employees benefit further from intelligent onboarding tools and predictive engagement analytics that help public agencies support their teams, often leading to higher satisfaction and lower turnover.

 

Ethical and Compliance Considerations

AI is still an emerging technology, and public agencies using AI in HR must pay careful attention to ethical and compliance issues surrounding it. Addressing these concerns proactively will help make sure that AI technologies are used fairly, transparently, and legally within the government HR space. These are some key areas to consider:

1. Fairness and Transparency in Automated Decisions

Public agencies are ultimately responsible for the decisions made or guided by AI tools, and those decisions must be made fairly. That means the algorithms used during recruitment and hiring should be transparent in how they evaluate candidates and make selections. This includes:

  • Human oversight. While AI can help automate processes, final decisions—particularly those involving sensitive or high-stakes outcomes—must involve human review. This oversight helps ensure that no unintentional biases or errors are perpetuated by the AI.
  • Clear decision-making processes. Candidates should be informed about how their applications are evaluated and what data is being used by AI systems to make those decisions.
  • Auditable decision-making models. HR departments must only select AI-supported systems that offer transparent audit trails, allowing human team members to review how decisions were made. This will become particularly important if a decision is later challenged. 

 

2. Preventing Algorithmic Bias Through Continuous Monitoring

AI systems are only as good as the data they are trained on, and if that data is biased, the AI's outcomes will be biased as well. For example, if historical hiring data reflects discriminatory practices, an AI system using this data could inadvertently perpetuate discrimination if not carefully monitored.

To avoid algorithmic bias, public agencies should:

  • Use diverse datasets. The data used to train AI models should be diverse and represent the full range of candidates that might apply for public sector positions.
  • Regular auditing and testing. AI systems should undergo periodic audits to check for any discriminatory patterns in hiring decisions. This involves testing AI algorithms with new data, evaluating the results, and making necessary adjustments to ensure that outcomes remain fair and unbiased.
  • Bias detection tools. Some organizations use specialized tools that scan for potential biases in AI-driven hiring processes. These tools identify whether certain groups are unfairly filtered out at certain stages of the recruitment process and help adjust the model for equitable outcomes.

 

3. Maintaining Compliance with EEOC Guidelines and State-Specific Hiring Laws

To maintain compliance, public agencies must align AI hiring tools with legal standards at both the federal and state level. That includes:

  • Avoiding discrimination. AI must not screen out candidates based on protected characteristics such as race, gender, age, disability, or any other protected class.
  • Maintaining transparency. Candidates should understand how AI is used in their evaluation and have a way to challenge decisions.
  • Supporting accessibility. AI tools must be usable by candidates with disabilities, including compatibility with screen readers and assistive tech.
  • Following state laws. Some states, like California with CCPA, require strict data privacy protections. Agencies must ensure any AI tools comply with local regulations to avoid legal risk

Remember: even if technology vendors claim compliance, public sector organizations are still ultimately responsible for actions taken in their agency. That’s why it’s important to select tools from trustworthy vendors that are designed with public sector needs in mind.

 

4. Data Privacy and Security

Given the sensitive nature of the personal data involved in HR processes, public agencies must take steps to maintain candidate privacy and security—especially when using AI. 

  • Data encryption. Encryption protects data both in transit and at rest, preventing unauthorized individuals from accessing it. Public sector agencies must choose AI systems that adhere to strict data encryption standards to protect sensitive candidate information.
  • Privacy safeguards. Privacy laws stipulate how personal data should be collected, stored, and processed, and how and when candidates must be informed about how their data will be used. Agencies must adhere to these laws and should provide clear privacy policies that specify what data is being collected, why it is being collected, and how it will be protected.
  • Data minimization. AI systems should only collect and process data necessary for making hiring decisions. This reduces the risk of a data breach by limiting the amount of sensitive information held by the agency.
  • Documentation. Secure vendors should also be able to provide clear, official documentation regarding encryption and compliance (such as SOC 2 or FedRamp). If they can’t, consider it a red flag.

Getting Started with AI in Government HR

To be successful with AI, you don’t need to overhaul your entire system overnight. Instead, start small and try one of these:

  • Automate job posting and outreach with a tool like Attract.
  • Use resume screening features in Insight to streamline evaluations.
  • Try an AI chatbot for common applicant questions.
  • Pilot predictive analytics in one department to forecast hiring needs.

Not sure where to start? Look at your most time-consuming, inefficient task, and identify an AI-assisted tool that can help your team move faster in that one area. Once you start seeing success, you can use that momentum to help automate other tasks—until your entire HR department can reap the benefits. By starting small and focusing on high-impact areas, public agencies can build toward a smarter, more efficient, and equitable hiring process.

Recruit Smarter, Hire Faster.

Automate time-consuming tasks, improve applicant experience, and reduce time-to-hire on the best candidates for your open positions with Attract and Insight.

Which platform is right for your agency’s needs? Find out today.

NEOGOV

NEOGOV understands the challenges public sector agencies face, and has built solutions to meet them. Our integrated platform supports every stage of the employee journey, from hiring and onboarding to growth, retention, and compliance. NEOGOV empowers you to build stronger communities through better workforce management.

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