Innovation in government does not just happen because someone has a great idea. It happens because the right data-informed systems, culture and foundations are in place to support it.
Since the State Data and Analytics Office was established in 2024, we have been working to reimagine how that foundation is built across Arizona. As our state's inaugural chief data and analytics officer, I have seen and experienced firsthand that true innovation is less about moving fast and breaking things and more about creating a culture of trust and learning where teams can leverage data to take smart risks.
The private sector often gets the spotlight when it comes to innovation, but I would argue that state government is where the most meaningful, complex innovation challenges exist. When addressed, these challenges lead to better outcomes and stronger communities. We are responsible for services that touch every resident, from health and housing to transportation and education to public safety. The scale is vast, the stakes are high and the opportunities for impact are enormous.
Innovation requires experimentation, and experimentation comes with risk. In government, that risk can feel magnified because public trust is on the line. At the same time, innovation depends on the quality of the data that fuels it by ensuring that teams can rely on accurate information to experiment confidently. Without accurate, trusted data, even the most creative ideas cannot be tested effectively or scaled responsibly.
This kind of culture does not mean being reckless, but rather emphasizes the importance of using data-driven decision-making to guide experimentation. It means setting boundaries so that learning can happen without jeopardizing mission delivery. When teams know they can test, measure and adapt without fear of blame, innovation accelerates naturally, allowing progress with purpose.
No system of innovation works without empowered people. In Arizona, we are investing in our workforce by improving data literacy, expanding access to analytical and governance tools, and building data and analytics-focused communities of practice across agencies. Every employee should have both the capability and the confidence to use data to solve problems.
We have seen this firsthand through the emergence of passionate data champions across state agencies. These are analysts, program managers and IT professionals who are already driving change with the tools and data they have available. Our role at the state data office is to amplify their impact, connect them, equip them and celebrate their successes. Innovation does not come from a directive at the top -- it flourishes when people closest to the work have the support to try new approaches and share what they learn.
Governance is often misunderstood as bureaucracy, but in practice, it is the invisible scaffolding that keeps innovation standing tall. When done right, governance creates consistency, trust and accountability, providing the framework and guardrails that make experimentation possible at scale.
Arizona is working to model this approach through state data initiatives focused on helping agencies and the state as a whole understand what data we have, how it is managed, and how it can be responsibly shared and used. You cannot innovate with what you do not understand, and for agencies to collaborate successfully, our governance frameworks are designed to help understand our data and make sharing across agencies the default expectation, not the exception.
Arizona is also advancing a comprehensive AI governance framework to ensure emerging technologies are used ethically and effectively. Through our state AI Steering Committee and planned support from an internal cross-agency generative AI council, we are establishing clear principles for transparency, accountability and fairness in AI applications across state government. These initiatives build upon our data governance foundation, ensuring that as we explore advanced tools like AI, we do so with the same commitment to trust, responsibility and public value that guides all of our innovation work.
The best governance models do not dictate every move -- they set the boundaries that enable freedom. "Freedom within frameworks" is a mindset where teams have the autonomy to experiment inside clear, trusted governance structures.
This balance of freedom and discipline is what turns isolated projects into sustainable, repeatable innovation. Frameworks such as data governance and change management might not sound glamorous, but they are the difference between innovation that lasts and innovation that fades. They turn ideas into impact.
At its core, building the foundation for innovation is not about technology or tools. It is about culture and trust. It is about leadership that values experimentation, equips teams with the right resources, and sees governance not as control but as a way to enable and empower employees to trust the data and innovate more effectively.
As public-sector leaders, we have an opportunity and a responsibility to create the conditions for innovation to flourish responsibly. That means investing in data readiness, empowering our workforce and reimagining governance as the guardrail, not the gatekeeper.
Arizona's innovation journey is still unfolding, but the direction is clear. When we build on strong data foundations and lead with trust, we not only innovate faster, we innovate smarter and with greater impact statewide.
Josh Wagner is chief data and analytics officer for Arizona.