AI Use Could Boost Public Sector’s Retirement Planning

More than two weeks into a federal government shutdown, research based on data collected in January highlighted how public employees are managing uncertainty—revealing that confidence with artificial intelligence may play a surprising role in shaping morale and future planning.

MissionSquare Research Institute, a nonprofit focused on public workforce research, released “Artificial Intelligence in the Public Workforce: An In-Depth Study on Employee Perspectives and Retirement Planning Implications.” The report, co-authored by Zhikun Liu, Eric Ludwig and Chet R. Bennetts, noted that while AI has improved efficiency in areas such as data analysis, customer service and document processing, far less attention has been paid to how employees experience these changes.

The study found 45.6% of government employees reported using AI in their current roles. Among them, 16.6% used AI tools daily, 26.2% weekly and 11% monthly. (Some employees used multiple AI tools at different frequency levels, such as weekly and monthly.)

Of employees who felt well-prepared for AI integration, 80% of respondents reported high workplace morale, compared with just 57% among those who never use AI. Concerns about job security significantly affected satisfaction. Among employees highly concerned about AI replacing their roles, only 21% reported positive morale—compared with 86% among those unconcerned.

While morale is shaped by multiple factors such as leadership, pay and workplace culture, the findings suggested that thoughtful, transparent AI adoption can play a positive role in employee well-being and performance.

Confident Employees Increase Financial Engagement

Beyond morale, the study also showed a strong link between AI confidence and financial planning engagement. Among employees who were very comfortable with AI, 81.6% expressed interest in using AI tools for retirement planning. Those who already used AI at work were more than twice as likely to use it for financial purposes (56.5% vs. 26.2%) and showed greater confidence in its ability to support long-term financial readiness.

In addition, frequent AI users also reported stronger engagement with financial professionals—72%, compared with just 15% of infrequent users—suggesting that AI enhances, rather than replaces, relationships with financial advisers.

“Based on our research, a clear opportunity exists for employers and plan sponsors to leverage AI solutions to help improve employee job satisfaction and support their retirement planning needs,” said Liu in a statement accompanying the report. “However, understanding overall employee perspectives on AI adoption remains critical, as success depends on tailoring approaches to meet the diverse needs of the workforce.”

The report offered guidance for organizations exploring AI integration. It encouraged employers to focus on communication and training that build trust and ease job security concerns, emphasizing comfort and familiarity, rather than forced adoption. Plan sponsors are advised to start with accessible tools such as retirement income projections and goal tracking, and to position AI as a complement to—not a replacement for—financial advisers.

The study was conducted from January 3 through 6, in partnership with Morning Consult, and surveyed 2,000 state and local government employees across the U.S. The sample was weighted to reflect the broader public sector workforce.