Government Process Automation Trillion

Joe Lonsdale proposes creating a business process outsourcing (BPO) company focused on local government operations, leveraging AI to help automate and augment various government processes. The opportunity exists because local governments spend $1 trillion and face staffing challenges with retiring workers.

Key Points:

• Market Understanding:

  • Local governments have 90 different processes they pay for software to handle
  • OpenGov (previous company) handles 40 of these processes
  • $1 trillion total spent by local governments
  • Many government workers retiring soon, creating staffing gaps

• Business Model:

  • Create BPO service augmented by AI
  • Target specific government processes from the 90 existing ones
  • Focus on processes governments already have budget for
  • Help governments do more with fewer staff members

• Implementation Strategy:

  • Find early partner cities willing to trust and work with you
  • Start with one process like:
    • Licensing and permitting
    • Asset management tracking
    • Budget automation
  • Prove you can save money while maintaining/improving service quality

• Growth Path:

  • Start with willing early adopters
  • Demonstrate cost savings and efficiency gains
  • Expand to more processes as trust is built
  • Potential to make billions in revenue before competitors notice due to market size