AI & The Future of Work (in the Public Sector)

As Elon Musk's efforts to transform the U.S. public service sector unfold, organizations stand at the threshold of a historic reinvention powered by artificial intelligence (AI). On March 20, Wikistrat hosted the third session in its Future of Work webinar series—this time featuring NASA veteran and future-of-work expert Steve Rader—to explore how AI is reshaping employment, redefining the value of human expertise, and revealing just how quickly the rules of talent, leadership, and organizational survival are being rewritten

Steve Rader is a former NASA Program Manager for Open Innovation and a leading expert on the future of work.

Webinar Recording:

Key Insights:

1. Uneven AI Adoption Is Creating a Competitive Divide

AI adoption is accelerating—but unevenly. While some organizations are moving quickly, others are stalled by unclear policies, compliance issues, and a chaotic tool landscape.

“There are companies going all in, and some that are just totally ignoring it... that adoption curve is really going to determine the impact.”

Large institutions face deeper challenges: outdated systems, rigid structures, and slow decision-making. In contrast, smaller, agile organizations are leveraging AI to scale faster and reduce costs—gaining a strategic edge.

2. AI Is Reshaping How Organizations Define High Performance

Generative AI is shifting how productivity is measured. Employees who use AI effectively can outperform high performers who don’t—challenging traditional notions of value.

Rader cited a study where lower-tier workers using AI outperformed top-tier peers who didn’t. This highlights a shift from experience to tool fluency. Organizations must rethink performance, prioritize adaptability, and train their workforce accordingly.

3. Retirements Are Creating a Knowledge Gap AI Could Solve

As experienced workers retire, organizations risk losing institutional memory. AI agents trained on internal data can preserve this knowledge and make it accessible across teams.

At NASA, Rader’s team explored using AI to retain critical expertise before retirement. Yet many organizations haven’t acted—limited by legal ambiguity, fragmented data, and lack of systems to support knowledge capture at scale

4. Freelance Talent Is Reshaping the Workforce Model

The workforce is rapidly shifting toward freelance and on-demand talent. By 2027, freelancers could outnumber full-time employees in several industries.

Rader emphasized that many experts now prefer the flexibility of gig work over traditional employment. Leading organizations are responding by building hybrid teams and using AI-powered platforms to source talent based on outcomes, not résumés.

5. Public-Sector AI Adoption Is Lagging—Despite High Stakes

Government agencies face significant barriers to AI integration—from legacy infrastructure to slow procurement processes and cultural resistance.

“Most government work will be delayed... there’s just not the same incentives to get through it.”

Despite these challenges, the public sector has the most to gain—smarter services, lower costs, and greater transparency. But progress requires secure tools, clear policy, and committed leadership.

6. Policy Must Catch Up Before AI Outpaces Control

AI is evolving faster than regulatory systems. Without forward-looking frameworks, governments risk losing control over how AI is used in critical domains.

“The impact of not using generative AI... you could be undercut.”

Rader noted that AI could support policymaking by modeling outcomes—but only if leaders understand and use the tools. Policy needs to be iterative, scenario-based, and embedded in innovation processes.

7. Executive Hesitation Is Slowing Digital Transformation

The biggest obstacle to AI integration isn’t technical—it’s cultural. Many leaders, especially near retirement, avoid engaging with disruptive technologies.

Rader observed that some CEOs now rely on younger advisors to interpret AI trends, but that’s not a substitute for leadership. Organizations need executives who actively champion experimentation and upskilling across teams.

8. The Next Decade Will Separate Adaptive and Obsolete Organizations

Over the next 10 years, AI will underpin nearly every organizational function. Those that adapt quickly—with ethical oversight and structural agility—will thrive.

Rader framed this moment as a convergence of tech acceleration, workforce change, and collapsing business cycles. Organizations that cling to static models will struggle to compete in a world moving at exponential speed.

9. AI Will Reshape Work—But Human Adaptability Will Determine Success

AI isn’t eliminating jobs—it’s redefining how work gets done. Success depends on how well humans and machines collaborate.

“Just because these tools are amazing doesn’t mean they’re easy—and it doesn’t mean they don’t have issues.”

Rader urged organizations to treat AI like an intern—fast and useful, but requiring supervision. The future workforce must be trained to use AI critically, not passively.