Holly, an AI-powered workforce platform for government agencies, has secured a $1.1 million grant alongside consulting and technology firm 17A to help Oklahoma and Virginia prepare their workforces for artificial intelligence. The 18-month project will examine how AI could change government jobs, identify emerging employee skills and modernize job classifications and compensation structures. The partners also plan to release VOKA, an open-source tool intended to help other states evaluate workforce readiness without hiring the two firms.

Holly Secures $1.1M Grant for AI-Ready Government Workforce

Holly has won a $1.1 million grant to help state governments redesign workforce planning and job classifications as artificial intelligence changes public-sector work. The project, developed with government consulting and technology firm 17A, will support agencies in Oklahoma and Virginia through an 18-month initiative focused on skills assessment, organizational design and civil-service workforce modernization.

The award comes from the Public Benefit Innovation Fund (PBIF), part of the Center for Civic Futures, and the Recoding America Fund. The project was selected under PBIF’s Priority 3 track, which supports modernization of government technology infrastructure and the organizational foundations needed to improve public services.

Rather than concentrating solely on AI software deployment, the initiative addresses a less visible challenge: determining how government roles, hiring requirements and compensation frameworks should change as agencies introduce new technology.

AI adoption creates new workforce planning demands

Government job descriptions and classification systems often reflect established responsibilities, qualifications and compensation structures. As agencies adopt AI tools, some tasks may become automated, while other roles could require stronger capabilities in data analysis, technology oversight, risk management and human supervision.

For public-sector HR teams, translating those changes into formal workforce policies can be difficult. Job classifications, civil-service rules, collective bargaining agreements and established compensation structures constrain how quickly agencies can redesign roles.

The Holly–17A initiative will examine how work may evolve across selected government functions and identify the skills employees will need as AI becomes more integrated into public administration.

In Oklahoma, the project will work with the central IT organization of the Office of Management and Enterprise Services. In Virginia, it will support the Department of Administration, which oversees IT, HR and other management functions.

The partners intend to develop a repeatable framework that state governments can use to evaluate existing positions, identify emerging capabilities and plan workforce transitions. The approach could help agencies distinguish between roles that need to change, positions requiring additional training and areas where new hiring may be necessary.

VOKA aims to make workforce analysis reusable

A central deliverable is VOKA, an open-source tool designed to compare state job classifications with a public library of future workforce skills. The project partners also plan to publish methodology, templates and evaluation criteria that other states can use to conduct similar reviews.

Making the tool openly available is a notable element of the initiative. Government agencies often face budget constraints and limited access to specialized workforce analytics expertise. Reusable resources could provide a starting point for agencies that want to assess AI-related skills gaps without commissioning a separate consulting engagement.

However, an open-source tool does not automatically make workforce transformation straightforward. Agencies will still need accurate job descriptions, stakeholder participation, reliable skills definitions and processes for reviewing proposed changes. Classification and compensation decisions may also require consultation with employees, unions and legal or policy teams.

The project therefore combines technology and data analysis with organizational design. Holly will lead the technology and data work, while 17A will oversee future-state capabilities, organizational design, skills taxonomy development and transition planning. Both organizations plan to engage government leaders and employees throughout the initiative.

A shift from AI deployment to workforce design

The project reflects an emerging issue in public-sector HR technology: agencies need to consider not only which AI systems to implement, but also how those systems change responsibilities and required competencies.

Workforce planning tools can help organizations map existing skills against anticipated needs, but predictions about AI’s effects on individual jobs remain uncertain. Agencies will need to distinguish between tasks that can be automated, responsibilities that require human judgment and new work created by AI oversight.

For government employers, that distinction has practical consequences. It can influence recruitment criteria, professional development budgets, job descriptions and internal mobility. A structured assessment may also help agencies prepare existing employees for changing responsibilities rather than relying exclusively on external hiring.

The project’s value will depend on whether its methodology produces actionable, transparent recommendations that can be adapted to different state agencies and regulatory environments.

Holly expands into state government

The grant represents Holly’s largest contract to date and its entry into state government, according to the announcement. The company says its agency partnerships grew from fewer than 10 to nearly 100 over the previous 12 months.

Holly also reported in August 2026 that its expansion into Marin County brought its California customer footprint to nearly 50% of the state’s approximately 40 million residents. The company has focused on helping city and county agencies modernize classification, compensation, hiring and regulatory compliance.

The Oklahoma and Virginia project expands that work to state-level workforce planning, with the partners saying the initiative will support government operations serving more than 35 million residents.

The broader test will be whether the framework can translate rapidly changing AI capabilities into practical workforce decisions without creating unnecessary disruption for public employees. If the partners can demonstrate a repeatable model, VOKA and the accompanying guidance could give other states a foundation for updating government jobs as technology changes.

Market Landscape

AI adoption is creating new demands for workforce planning, skills intelligence and HR modernization across the public sector. Government agencies must balance technology implementation with civil-service requirements, compensation frameworks, employee consultation and long-term staffing needs.

Holly and 17A are addressing three connected priorities:

• Skills-based workforce planning: Mapping current job requirements against capabilities that agencies may need as AI changes workflows.
• Organizational design: Reviewing job classifications, recruitment requirements and compensation structures while accounting for public-sector constraints.
• Reusable HR technology: Developing VOKA and open-source guidance to help other states conduct workforce assessments.

The initiative’s differentiation lies in combining workforce analytics with organizational consulting and an open-source deliverable. Its impact will depend on the quality of the methodology, adoption by other jurisdictions and the project’s ability to produce practical recommendations that agencies can implement.

Top Insights

• Holly and 17A secured a $1.1 million grant for an 18-month project to prepare Oklahoma and Virginia government workforces for AI-related changes.
• The initiative will review job classifications, identify emerging skills and support workforce planning within civil-service and compensation constraints.
• VOKA, an open-source tool, will compare state job classifications with a public library of future workforce skills.
• Holly will lead technology and data analysis, while 17A will focus on organizational design, skills taxonomy and transition planning.
• The partners intend to publish reusable methods and templates so other states can assess workforce readiness without contracting with either organization.

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