Report Finds 83% of Federal Agencies Say Their Data Isn’t AI-Ready

Jul 10, 2025

Survey Report Highlights Data Modernization as Key for Agencies to Accelerate AI at Scale

RESTON, Va. (July 10, 2025) — ICF (NASDAQ:ICFI), a leading global solutions and technology provider, released a new report, “The AI Advantage: Moving from Exploration to Impact,” offering a detailed look into how U.S. federal agencies are progressing in leveraging and scaling AI initiatives, and key challenges that are holding them back.

The report, based on a survey of 200 federal leaders, reveals that while AI momentum is growing, most agencies are still laying critical groundwork, especially when it comes to data. A striking 83% of leaders say their data is not yet ready for AI use. But agencies are optimistic:

  • 41% are running small-scale pilots with a growing 16% scaling efforts and 8% operating mature programs
  • 50% are focused on experimentation, while 51% are prioritizing readiness and planning
  • 79% believe AI is secure enough for enterprise-wide use
  • 66% expect their data to be AI-ready within two years

“As federal leaders look to begin scaling AI programs, many are hitting the same wall: data readiness,” said Kyle Tuberson, ICF chief technology officer. “This report makes it clear: without modern, flexible data infrastructure and governance, AI will remain stuck in pilot mode. But with the right foundation, agencies can move faster, reduce costs, and deliver better outcomes for the public.”

The report outlines a practical path forward for federal leaders: investing in scalable data strategies, upskilling the current workforce, and embracing clear, flexible governance to drive responsible, enterprise-wide AI adoption.

As a trusted partner to government and a leader in AI solutions, ICF brings together deep domain expertise with leading-edge technologies, advanced analytics, human-centered design to help agencies operationalize AI. From strategy to execution, ICF supports federal clients in reducing time-to-value, accelerating mission outcomes and transforming service delivery through AI.

Read more about ICF's digital services and cloud solutions.

About ICF

ICF is a leading global solutions and technology provider with approximately 9,000 employees. At ICF, business analysts and policy specialists work together with digital strategists, data scientists and creatives. We combine unmatched industry expertise with cutting-edge engagement capabilities to help organizations solve their most complex challenges. Since 1969, public and private sector clients have worked with ICF to navigate change and shape the future. Learn more at icf.com.

Caution Concerning Forward-looking Statements

Statements that are not historical facts and involve known and unknown risks and uncertainties are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements may concern our current expectations about our future results, plans, operations and prospects and involve certain risks, including those related to the government contracting industry generally; our particular business, including our dependence on contracts with U.S. federal government agencies; and our ability to acquire and successfully integrate businesses. These and other factors that could cause our actual results to differ from those indicated in forward-looking statements that are included in the "Risk Factors" section of our securities filings with the Securities and Exchange Commission. The forward-looking statements included herein are only made as of the date hereof, and we specifically disclaim any obligation to update these statements in the future.

Contact: Lauren Dyke, lauren.dyke@ICF.com, +1.571.373.5577