AI is making its way into one of the hardest customer segments to break into: government.

AI adoption in government is notoriously difficult. Strict compliance rules, complex procurement, and slow adoption cycles can stall even the best ideas. Alex Millar, co-founder and CTO of GovAI, has navigated these challenges twice: first with Bonfire, a public sector procurement platform acquired for $108 million, and now with GovAI, which brings safe, contextual AI to public sector organizations.

In this episode, Daniel and Alex talk about what it takes to sell AI into regulated industries, why pricing models can be as important as features, and how to position a product so it aligns with public sector priorities.

They dig into retrieval-augmented generation (RAG), evaluation testing, and handling “negative use cases” in ways that preserve trust. Alex also shares practical ways leaders can get hands-on with AI to build skills and find everyday value.

🔑 What You’ll Learn in This Episode

• ✅ How to position an AI product for the public sector and other regulated industries
• ✅ Why flat-fee pricing can improve adoption in government AI projects
• ✅ How to identify and address negative use cases before they derail user trust
• ✅ What RAG evaluations reveal about product performance and expectations
• ✅ Why learning AI starts with getting “reps” in your own day-to-day work

🔗 Resources & Links

• 🤝 Connect with Alex on LinkedIn: https://www.linkedin.com/in/alxndrmlr/
• 🌐 Learn more about GovAI: https://govai.com/
• 📩 Subscribe to the Artificial Insights newsletter for summaries and takeaways: https://manary.haus/podcast/#haus
• 👉 Have a guest in mind? Reach out to Daniel at [email protected]

💬 Know someone building AI products with lasting impact? Share this episode with them!