# State Department Deploys AI Tool with TMF Funding

The U.S. Department of State has successfully developed and deployed StateChat, a generative AI tool funded through an **$18.2 million Technology Modernization Fund (TMF) investment awarded in May 2024**. Currently utilized by approximately 65,000 State Department employees, StateChat enhances productivity and mission effectiveness across the agency. The department also published a detailed Generative AI Playbook that documents its six-year AI innovation journey, providing practical guidance for other federal agencies seeking to implement secure and scalable AI solutions.

- This TMF-funded initiative highlights the growing federal investment in AI technologies to modernize government operations and improve workforce efficiency.
- Procurement professionals should note the role of the TMF Board in enabling AI adoption and consider similar funding mechanisms for AI-related modernization projects.
- Contractors specializing in AI development, deployment, and secure cloud infrastructure may find emerging opportunities supporting federal generative AI implementations.
- The Generative AI Playbook serves as a valuable resource for agencies planning AI procurements, emphasizing best practices for secure, scalable AI integration within government environments.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence
**Published:** September 26, 2026

### Government Entities
- U.S. Department of State (State Department)
- General Services Administration (GSA)
- Technology Modernization Fund Board (TMF Board)

### Sources
- [
        Federal News Network | Federal Leader’s Guide to CAIO & CDO: State’s Erik Peterson, Maïté Hostetter on the department’s AI innovation journey](https://federalnewsnetwork.com/artificial-intelligence/2026/09/federal-leaders-guide-to-caio-cdo-states-erik-peterson-maite-hostetter-on-the-departments-ai-innovation-journey) - Federal News Network