Rethinking State Grants Management in the Age of AI: It’s Not Just About the Tech

May 14, 2025

In today’s evolving public funding landscape, artificial intelligence (AI) is changing the game. But let’s be clear: AI is a tool—not a replacement for the fundamentals that make public grants work—collaboration, common sense, process improvement, and a relentless focus on outcomes.

As federal funds continue to flow through states to local governments, nonprofits, and other partners, the role of state governments as pass- through funders has never been more critical. To meet this moment, states need to rethink how they administer grants—not just with technology, but with structure, strategy, and stewardship.

Here’s What That Looks Like in Practice:


1.    Build Capacity Before the Grant Goes Out
Many high-potential community-based organizations are under-resourced and unprepared to compete for funding. States should invest in upfront capacity development to help these groups apply, manage, and deliver on grant requirements—especially in rural and other underserved areas.


2.    Centralize Funding Opportunities

No more treasure hunts. Publish all Notices of Funding Opportunities (NOFOs) in a single, searchable location. This one step increases access, transparency, and levels competition across the board.


3.    Streamline Grant Systems
Too many states maintain multiple, siloed grants management platforms, wasting time and resources. Consolidating systems reduces complexity for agencies and grantees alike—and improves data integrity across the grant lifecycle.


4.    Standardize the Rules of the Road
Agencies should adopt a core set of policies and procedures—both for grant solicitation and managing them post-award. This makes training easier, reduces errors, and creates a more consistent experience for applicants.


5.    Simplify the Application Process
Let’s stop forcing organizations to navigate a patchwork of forms and formats. A common grant application framework across programs reduces duplication and saves time—for everyone.


6.    Use AI Where It Makes a Real Difference
Rather than making AI the centerpiece, use it where it can amplify impact behind the scenes. For example, automate matching of proposals to the most aligned programs—redirecting applicants rather than making them resubmit multiple applications. This avoids duplication and opens access to better-fit opportunities.


7.    Right-Size Compliance
Not all grants—or grantees—are the same. States should adopt tiered compliance models that match oversight levels to risk, funding size, and recipient capacity. That means less red tape for mature grant recipients, and more focus where it matters most.


8.    Keep the Focus on Outcomes
At the end of the day, grants are about impact—not just process. We must measure success by project and program outcomes, not by how many forms are filled or audits completed.


Final Thought
Smart grants management requires more than technology. It demands leadership, intentional design, and a commitment to outcomes over bureaucracy. By embracing both innovation and foundational process reforms, states can redefine what efficient, equitable, and modern grants administration looks like.

 Let’s stop viewing grants as paperwork—and start seeing them as public impact in motion.

To learn more about the dedicated resources we have and gain valuable insights on grants management, please visit our Center for Grant Excellence page.

If you need further assistance, please reach out to see how we can help.

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