Joint Legislative Audit and Review Commission: State government ‘falling short’ in AI preparation

By the Editorial Team · Saturday, October 24, 2026

A recent JLARC report reveals that Virginia’s state government is ill-equipped to fully utilize AI benefits or manage its risks, especially amid increasing federal financial penalties linked to errors in the SNAP program. The study urges the Virginia Information Technologies Agency to enhance AI oversight and expertise, prompting the creation of a new AI Task Force to improve policy, training, and public safety measures.

Virginia’s state government is currently underprepared to fully leverage the benefits of artificial intelligence (AI) while addressing its associated risks, according to a recent report from the Joint Legislative Audit and Review Commission (JLARC), the General Assembly’s oversight agency.

The 97-page study highlights significant opportunities for AI to improve government operations, particularly in reducing costly errors within the Supplemental Nutrition Assistance Program (SNAP). New federal legislation, signed last year, increases Virginia’s financial liability for error rates in determining SNAP eligibility, potentially costing the state up to $270 million annually if these rates are not lowered. JLARC recommends that the Virginia Information Technologies Agency (VITA) prioritize AI to help reduce these errors and modernize state IT systems.

Despite these potential improvements, the audit finds that VITA is not currently positioned to maximize AI’s advantages or implement appropriate oversight and guidelines. Hal Greer, JLARC’s staff director, told legislators that VITA’s support and guidance in AI-related matters need substantial enhancement. Although Michael Watson, who became VITA’s chief information officer in April, acknowledges the urgency to respond to the rapid evolution of AI, the study points to ongoing deficiencies in risk-based criteria, clear policies, and timely updates for the 65 executive branch agencies it serves.

Greer also raised concerns about the Division of Legislative Services, responsible for helping the General Assembly draft new laws, noting it lacks attorneys with technology law expertise crucial for navigating AI’s complex legislative challenges. Presently, the division has no dedicated specialist in this field nor access to one, limiting its capacity to provide lawmakers with informed legal counsel on AI-related issues. JLARC suggests the division consider hiring experts, collaborating with universities, or retaining outside counsel, potentially supported through state budget allocations, to build this capability.

The study also underscores the broader public risks of AI, particularly for young people who frequently interact with AI chatbots. It references efforts by institutions like the Massachusetts Institute of Technology, which maintains a repository documenting over 1,700 AI-related risks, and the FBI, which has registered more than 22,000 AI-linked crime complaints, resulting in nearly $22 million in economic losses within Virginia.

In response to the report, Governor Abigail Spanberger established an AI Task Force led by Secretary of Administration Traci Deshazor, Counsel Matt McGuire, and Chief Transformation Officer David Wilkinson. Deshazor, who oversees VITA, emphasized that public safety must remain paramount in AI development and deployment, affirming ongoing efforts to address the concerns outlined.

The JLARC report finds that roughly one-third of state agencies are already using or experimenting with AI for specific tasks, with many employees utilizing general-purpose AI tools. However, use of more autonomous AI systems remains limited. The commission cited gaps in policy and training regarding general AI tools as increasing risks such as sensitive data exposure. Coordination challenges and data readiness issues within VITA further hinder effective AI integration.

Overall, the study calls for heightened expertise, clearer policies, and better coordination to ensure Virginia’s government can harness AI’s capabilities effectively while safeguarding against its risks.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.