Nebraska state agencies deployed a new AI assistant to their websites on Tuesday. The chatbot, named “Nebraska Navigator,” was developed by Tyler Technologies, a company that designs AI tools specifically for state and local government agencies.
State Auditor Mike Foley has raised issues with the state’s ongoing contracts with Tyler Technologies – even going as far as saying the company has held the state “hostage” to receive additional payments for online applications. Foley has argued before that the State Records Board should consider revisiting the state’s agreement with Tyler Technologies and seek other, more affordable partnerships.
The state said it will pay for the expanded use of the chatbot using money from fees Nebraska residents pay to use certain online government services. It paid a one-time implementation fee of $40,000 and will pay a recurring annual fee of $125,000 for licensing and $12,500 for a voice assistant.
The chatbot works by only pulling information from verified state websites, not from the internet like other large language models such as ChatGPT or Claude. However, Tyler’s terms and conditions do not guarantee accuracy or certify that the chatbot’s answers will match information elsewhere on the state agency’s website. Users of the tool are reminded to verify its answers.
“I don’t know that it’s particularly useful,” said Justin Hubly, executive director of the Nebraska Association of Public Employees. “It seems a little funny to me to use something that says, ‘use this but it might be wrong,’ versus just looking for the information on the website to begin with.”
The tool was initially tested on the Nebraska DMV website starting in December before its statewide launch.
“Results from the DMV pilot project were very impressive, and now we’re ready to expand its use to even more people,” Gov. Jim Pillen said in a news release.
During the beta test, the DMV received more than 188,000 queries from people using the chatbot. At the same time, its call volume declined by 20%, and the state said in-person visits also decreased. MV Deputy Director Mitch Greenwall said the state became interested in experimenting with an AI tool after similar chatbots were launched in Indiana and West Virginia.
The DMV has experienced staffing shortages in the past three years, closing eight offices in November 2023. It also temporarily closed several offices during summer 2025. This AI tool is intended to reduce strain on state employees. Greenwall said that staffing shortages primarily impact services like driving tests, which wouldn't be solved with the chatbot. However, it does increase efficiency in other areas, helping customers 24/7 and in 50 languages.
While Hubly isn’t concerned about the impact thise chatbot may potentially have on state employees, NAPE plans to include priorities about AI use in its union negotiation with the state this month.
"They still close offices frequently due to short staffing around Nebraska. And we want to make sure those offices are staffed,” Hubly said. “So if there are efficiencies that we can explore together, great. But we want to make sure that there's good governance and accountability ain AI use.”