Securing GenAI for State and Local Governments Adam Ford (Chief Technology Officer)

It’s early February, and a small municipal government is processing an influx of public records requests. The team, overwhelmed and understaffed, begins utilizing ChatGPT to summarize documents, pull relevant data, and expedite responses. By the end of the week, their workflows have improved dramatically; tasks that once took hours are now completed within minutes. However, by March, that same team discovers that sensitive internal data was unintentionally exposed to external servers during document processing, raising concerns about potential misuse—a discovery that prompts panic across the office.This fictional scenario is becoming an increasingly tangible risk in the era of generative AI (GenAI), where the promise of transformational efficiency is tempered by questions about privacy, security, and compliance. For state and local governments, often working with limited budgets and outdated technology, the challenge is amplified. But there’s hope on the horizon: cybersecurity innovators like Zscaler are empowering governments to fully realize the potential of GenAI—without compromising security.The Power and Risks of Generative AI in GovernmentGenerative AI tools, which create text, images, models, and code, are reshaping industries including healthcare and education. For state and local governments, the opportunities are exciting:Enhanced Service Delivery: Chatbots powered by GenAI can handle routine inquiries, such as obtaining licenses, paying taxes, or finding information about services.Predictive Analytics: AI tools can analyze patterns to forecast public safety risks, disease outbreaks, or infrastructure needs.Operational Efficiency: Automating document summarization, data processing, and report generation enables employees to focus on value-added tasks.Yet, the adoption of these AI tools comes with significant risks.According to a survey by Gartner in early 2023, 77% of organizations cited security as the biggest impediment to AI adoption. And with good reason: in Zscaler’s ThreatLabz GenAI Report 2025, 60% of organizations reported attempts by bad actors to exploit vulnerabilities in generative AI integrations by targeting sensitive data during transmissions.For governments, the risks are further compounded by compliance mandates and the heightened responsibility to protect citizen data. Prominent risks include:Data Leakage: Sensitive information may be improperly stored, increasing the risk of unauthorized access.Compliance Violations: Agencies processing personal or classified data via unprotected AI systems risk violating frameworks such as HIPAA, CJIS, and PCI DSS.These risks either remain unaddressed (due to unrestricted access to generative AI applications) or result in a loss of productivity by completely banning the use of generative AI.How Zscaler Secures Generative AI for State and Local GovernmentsZscaler is equipping state and local agencies with the tools they need to embrace GenAI securely. Through solutions guided by Zero Trust Principles—a security model that assumes breach and enforces least-privileged access—Zscaler ensures sensitive information stays protected across all interactions with AI platforms.Key Components of Zscaler’s Generative AI SecuritySome of the ways Zscaler leverages its platform to help governments safely adopt GenAI include:Visibility into GenAI Apps: See which AI apps are in use across your users, departments, and organization with interactive dashboards. Gain in-depth visibility into application trends and which data is most at risk.Data Loss Prevention (DLP): Zscaler safeguards data by preventing unauthorized transmission via GenAI applications. By implementing policies to block sensitive data sharing, agencies can keep information secure. For example, an employee drafting a report using generative AI won’t accidentally expose confidential citizen information to the cloud.Visibility Into Prompts: The ability to see what prompts are being put into public GenAI tools helps agencies understand how employees are using these tools and shapes policies for enforcement.Secure AI Access via Isolated Browser: For even stronger protection, render AI and ML applications in Browser Isolation to allow user prompts while restricting clipboard use for uploads and downloads.Secure Access Service Edge (SASE) Architecture: Zscaler integrates security into its cloud networking infrastructure, ensuring seamless and scalable protection, even for geographically dispersed agencies.Research-Based InsightsMcKinsey’s 2023 report, The State of Generative AI, predicts that by 2030 productivity improvements from GenAI could add up to $4.4 trillion annually in global economic value—with government operations poised to benefit significantly. Yet, the report cautions that cyber vulnerabilities will rise in tandem. Zscaler’s ThreatLabz GenAI Report 2025 has identified key cybersecurity trends impacting governments:Data Exploitation Trends: The report reveals that 33% of cyberattacks targeting government entities in 2025 will involve exploitation of AI tools, underscoring the need for advanced monitoring and threat prevention policies.Compliance Failures: According to ThreatLabz findings, improper use of generative AI tools without Zero Trust protections has already led to a 47% spike in compliance violations across sectors in 2025.Malware Evolution: Threat actors are now injecting AI-generated code into government networks, leveraging generative AI to bypass traditional security frameworks.These findings emphasize the urgent need to pair advanced AI use cases with cutting-edge cybersecurity solutions, like those offered by Zscaler.Future-Proofing Government for the AI RevolutionGenerative AI has opened an exciting frontier for state and local governments, offering breakthroughs in efficiency, analytics, and citizen-first services. But unlocking these advantages requires robust, scalable security solutions that protect sensitive government data while enabling innovation.Zscaler gives governments the tools they need to innovate boldly—while ensuring every instance of generative AI use remains compliant and secure. Whether automating workflows, improving public services, or enhancing community safety, Zscaler helps governments adopt GenAI responsibly.As governments continue their march into the AI-powered future, one thing is abundantly clear: security isn’t just a feature—it’s the foundation. And with Zscaler, state and local agencies can confidently unlock the transformative power of generative AI while safeguarding their data and citizens. Sources:Zscaler, ThreatLabz GenAI Report 2025Gartner, Predicting AI Security Risks in Public Sectors, 2023McKinsey & Company, The State of Generative AI, July 2023  

​[#item_full_content] It’s early February, and a small municipal government is processing an influx of public records requests. The team, overwhelmed and understaffed, begins utilizing ChatGPT to summarize documents, pull relevant data, and expedite responses. By the end of the week, their workflows have improved dramatically; tasks that once took hours are now completed within minutes. However, by March, that same team discovers that sensitive internal data was unintentionally exposed to external servers during document processing, raising concerns about potential misuse—a discovery that prompts panic across the office.This fictional scenario is becoming an increasingly tangible risk in the era of generative AI (GenAI), where the promise of transformational efficiency is tempered by questions about privacy, security, and compliance. For state and local governments, often working with limited budgets and outdated technology, the challenge is amplified. But there’s hope on the horizon: cybersecurity innovators like Zscaler are empowering governments to fully realize the potential of GenAI—without compromising security.The Power and Risks of Generative AI in GovernmentGenerative AI tools, which create text, images, models, and code, are reshaping industries including healthcare and education. For state and local governments, the opportunities are exciting:Enhanced Service Delivery: Chatbots powered by GenAI can handle routine inquiries, such as obtaining licenses, paying taxes, or finding information about services.Predictive Analytics: AI tools can analyze patterns to forecast public safety risks, disease outbreaks, or infrastructure needs.Operational Efficiency: Automating document summarization, data processing, and report generation enables employees to focus on value-added tasks.Yet, the adoption of these AI tools comes with significant risks.According to a survey by Gartner in early 2023, 77% of organizations cited security as the biggest impediment to AI adoption. And with good reason: in Zscaler’s ThreatLabz GenAI Report 2025, 60% of organizations reported attempts by bad actors to exploit vulnerabilities in generative AI integrations by targeting sensitive data during transmissions.For governments, the risks are further compounded by compliance mandates and the heightened responsibility to protect citizen data. Prominent risks include:Data Leakage: Sensitive information may be improperly stored, increasing the risk of unauthorized access.Compliance Violations: Agencies processing personal or classified data via unprotected AI systems risk violating frameworks such as HIPAA, CJIS, and PCI DSS.These risks either remain unaddressed (due to unrestricted access to generative AI applications) or result in a loss of productivity by completely banning the use of generative AI.How Zscaler Secures Generative AI for State and Local GovernmentsZscaler is equipping state and local agencies with the tools they need to embrace GenAI securely. Through solutions guided by Zero Trust Principles—a security model that assumes breach and enforces least-privileged access—Zscaler ensures sensitive information stays protected across all interactions with AI platforms.Key Components of Zscaler’s Generative AI SecuritySome of the ways Zscaler leverages its platform to help governments safely adopt GenAI include:Visibility into GenAI Apps: See which AI apps are in use across your users, departments, and organization with interactive dashboards. Gain in-depth visibility into application trends and which data is most at risk.Data Loss Prevention (DLP): Zscaler safeguards data by preventing unauthorized transmission via GenAI applications. By implementing policies to block sensitive data sharing, agencies can keep information secure. For example, an employee drafting a report using generative AI won’t accidentally expose confidential citizen information to the cloud.Visibility Into Prompts: The ability to see what prompts are being put into public GenAI tools helps agencies understand how employees are using these tools and shapes policies for enforcement.Secure AI Access via Isolated Browser: For even stronger protection, render AI and ML applications in Browser Isolation to allow user prompts while restricting clipboard use for uploads and downloads.Secure Access Service Edge (SASE) Architecture: Zscaler integrates security into its cloud networking infrastructure, ensuring seamless and scalable protection, even for geographically dispersed agencies.Research-Based InsightsMcKinsey’s 2023 report, The State of Generative AI, predicts that by 2030 productivity improvements from GenAI could add up to $4.4 trillion annually in global economic value—with government operations poised to benefit significantly. Yet, the report cautions that cyber vulnerabilities will rise in tandem. Zscaler’s ThreatLabz GenAI Report 2025 has identified key cybersecurity trends impacting governments:Data Exploitation Trends: The report reveals that 33% of cyberattacks targeting government entities in 2025 will involve exploitation of AI tools, underscoring the need for advanced monitoring and threat prevention policies.Compliance Failures: According to ThreatLabz findings, improper use of generative AI tools without Zero Trust protections has already led to a 47% spike in compliance violations across sectors in 2025.Malware Evolution: Threat actors are now injecting AI-generated code into government networks, leveraging generative AI to bypass traditional security frameworks.These findings emphasize the urgent need to pair advanced AI use cases with cutting-edge cybersecurity solutions, like those offered by Zscaler.Future-Proofing Government for the AI RevolutionGenerative AI has opened an exciting frontier for state and local governments, offering breakthroughs in efficiency, analytics, and citizen-first services. But unlocking these advantages requires robust, scalable security solutions that protect sensitive government data while enabling innovation.Zscaler gives governments the tools they need to innovate boldly—while ensuring every instance of generative AI use remains compliant and secure. Whether automating workflows, improving public services, or enhancing community safety, Zscaler helps governments adopt GenAI responsibly.As governments continue their march into the AI-powered future, one thing is abundantly clear: security isn’t just a feature—it’s the foundation. And with Zscaler, state and local agencies can confidently unlock the transformative power of generative AI while safeguarding their data and citizens. Sources:Zscaler, ThreatLabz GenAI Report 2025Gartner, Predicting AI Security Risks in Public Sectors, 2023McKinsey & Company, The State of Generative AI, July 2023