Public Sector AI: Secure, Local, Offline

The State of Public Sector AI in 2025

AI for government is transforming how federal, state, and local agencies operate. According to the U.S. Government Accountability Office (GAO), federal agencies' use of generative AI increased ninefold from 2023 to 2024, with total reported AI use cases nearly doubling from 571 to 1,110 across major agencies.

Public sector AI encompasses a wide range of applications: from citizen service chatbots and document automation to intelligence analysis and national security applications. However, government adoption faces unique challenges around security, compliance, and data sovereignty that commercial AI solutions often cannot address.

Key Challenges for Government AI Adoption

A 2025 GAO report found that officials at 10 of 12 federal agencies identified existing policies as major obstacles to deploying AI for government applications:

• Data Privacy Policies: Existing federal data privacy requirements conflict with cloud-based AI
• Security Classification: Highly segmented data separated by classification levels
• Technical Resources: Insufficient infrastructure for secure AI deployment
• Commercial AI Limitations: Most AI solutions designed for commercial use cannot meet federal security requirements
• Data Sovereignty: Concerns about data leaving controlled environments

AI for Classified Government Operations

For teams working inside SCIFs (Sensitive Compartmented Information Facilities) and DoDIN enclaves, even a single external connection can disqualify an AI tool from use. AI for classified government environments requires a fundamentally different approach.

Microsoft recently deployed the first-ever air-gapped GPT-4 model specifically for classified workloads - a major breakthrough that demonstrates the critical need for offline AI for government applications. However, government agencies need solutions they can deploy on their own infrastructure without dependence on any single vendor.

On-Premises & Air-Gapped Deployment Options

Iternal offers multiple deployment models for public sector AI to meet every security classification level:

• AWS GovCloud: FedRAMP High authorized environment for CUI and sensitive workloads
• On-Premises Deployment: Full installation within agency-controlled data centers
• Air-Gapped Installation: Complete network isolation for classified environments
• SCIF-Compatible: Purpose-built for operation in compartmented facilities
• IL5/IL6 Capable: Supporting Secret and Top Secret classification levels

Security & Compliance Standards

Our AI for government solutions are designed to meet the most stringent security requirements:

• FedRAMP High: Aligned with federal security authorization requirements
• NIST 800-53: Full control implementation for federal information systems
• NIST 800-171: CUI protection for defense contractors
• FIPS 140-3: Validated cryptographic modules for data protection
• Section 508: Full accessibility compliance for all outputs
• STIG Hardened: Security Technical Implementation Guide configurations

Can AI run in a completely air-gapped environment?

Yes. AirgapAI is specifically designed for offline AI deployment with zero external dependencies. All model inference, context processing, and content generation happens entirely within your controlled perimeter with no internet connection required. This makes it suitable for SCIFs, classified networks, and other air-gapped environments.

What classification levels does your AI support?

Our AI for government solutions support all classification levels from unclassified through Top Secret. We offer AWS GovCloud deployment for CUI/IL5, on-premises installation for agency-controlled environments, and fully air-gapped deployment for IL6 and compartmented facilities.

How does secure local AI differ from cloud AI?

Secure local AI processes all data on your own infrastructure without transmitting information to external servers. This eliminates risks of data exposure, meets data sovereignty requirements, and enables use with classified information. Cloud AI, by contrast, sends data to external servers for processing.

What FedRAMP authorization level do you support?

Our public sector AI platform is architected to meet FedRAMP High requirements with STIG-hardened configurations, FIPS 140-3 validated cryptography, and full NIST 800-53 control implementation. We support deployment in FedRAMP-authorized cloud environments or on-premises installations.

Can your AI be used inside a SCIF?

Yes. AirgapAI is purpose-built for AI for SCIFs and other compartmented facilities. With zero external network connections, local-only processing, and complete auditability, it meets the stringent requirements for operation in sensitive compartmented information facilities.