AI
Clearbox Source
Market Research
Recently we surveyed our customers to learn how we’re doing, what they want from our platform, and which projects they’re planning next. We evaluated user activity and survey responses from over 100 agencies across 20 states, and three themes stood out: interest in cybersecurity and AI is high, budget is the top barrier to procurement, and governments rely heavily on their peers to figure out what works.
Those themes don’t exist in a vacuum. They line up closely with what state technology leaders and city finance officers are reporting nationally, which tells us our customers aren’t outliers — they’re seeing the same pressures as everyone else in the public sector.
Here’s a breakdown of what we found.
1. What’s trending
We combined survey responses with search activity on Marketplace.city to find the topics drawing the most interest right now. The two most frequently cited areas in the pipeline for future projects were:
- Data security and AI — AI risk, AI chatbots, and data governance
- IT infrastructure — fiber and cybersecurity
These trends aren’t earth-shattering. The conversation around AI is everywhere, and there’s no denying we’re in an uncertain time. AI tools are moving faster than governments can evaluate them, and there’s no sign of that slowing down (yet). That creates new risks for government data.
Our customers aren’t alone in feeling this. In NASCIO’s 2026 survey of state CIOs, artificial intelligence overtook cybersecurity as the #1 priority for the first time, ending cybersecurity’s 12-year run at the top. Cybersecurity came in at #2 and budget and cost control at #3 — the same three themes our customers raised.
The takeaway: before adopting AI tools, agencies need a clear picture of what’s on the market, how to govern it, and which cybersecurity solutions will keep staff and resident data protected.
2. Barriers to procurement
We know procurement isn’t as streamlined as it should be, so we asked our customers where it breaks down. Red tape and administrative hurdles slow things down, but budget is clearly the biggest obstacle to adopting new technology. More than half of respondents named it — more than the other two barriers combined.
That lines up with the broader fiscal picture. In the National League of Cities’ 2025 City Fiscal Conditions report, only 45% of city finance officers said they felt optimistic about meeting their fiscal needs, down from 64% the year before, as federal pandemic aid winds down and costs keep rising.
When budgets tighten, every dollar has to work harder. That makes it more important to know what a fair price looks like, and to learn from agencies that have already bought and deployed a solution. Governments share frustrations about what the problems are — but how do they share what actually works? This is where collaboration comes in.
3. Governments learn from each other
92% of respondents said they look to peers and nearby cities to spur innovation, but only 60% have actually collaborated with another agency directly. That gap between watching and working together is where new opportunities can emerge, given the right resources.
When we asked what would help, respondents were clear: a searchable database of real government documents, and facilitated conversations with peer agencies. In short, governments want to learn directly from other governments’ experiences — through the documents they’ve produced and through direct conversations.
4. How Marketplace.city helps
Governments share problems, and our platform is here to help solve them — not just acknowledge that they exist. Marketplace.city is built to help at any stage of your process:
- Researching cybersecurity and data governance? We have more than 30 Market Landscapes covering those two areas alone.
- Worried you’re being quoted too high? Our contract and quote analysis service helps make sure you’re getting a competitive price.
- Want to hear from peers who’ve been there? With a network of more than 100 agencies, we’ll connect you directly.
And we’re continuing to build based on your feedback. We recently launched agency and product pages, and next we’re rolling out document search so you can browse municipal contracts, RFPs, and more — updates based directly on what you told us.
Take the survey results with you
We pulled the headline numbers into a one-page tear sheet you can share with your team or bring to your next budget conversation — the top technology areas, the budget barrier, and what agencies want most from a peer network.
Ready to start answering the “how” behind your organization’s challenges? Search our data or submit a custom data request on Marketplace.city.
Sources
- NASCIO, 2026 State CIO Top 10 Priorities (December 2025)
- National League of Cities, City Fiscal Conditions 2025 (November 2025)
- Marketplace.city customer survey (2026)
