Steve Rao: An outline for NC's incoming secretary of technology

As North Carolina appoints Teena Piccione as the new Secretary of Technology, the state faces a pivotal moment to harness technology for economic growth and digital inclusivity.

North Carolina stands at a crossroads. As one of the fastest-growing states in the nation, our ability to harness the power of technology will determine whether we remain a leader in innovation and economic development or fall behind in a digital divide that excludes too many of our residents.

Congratulations to Gov. Josh Stein for now having a Cabinet in place. I believe that one of the most important Cabinet positions is the Secretary of Technology, who leads our North Carolina Department of Information Technology (NC DIT).

Why does Digital NC matter?

Let me share with you a few ideas on why a truly Digital North Carolina is important for the future of our state:

Economic growth

Technology is not just a sector, it is the foundation of every sector. From agriculture and manufacturing to biotech and finance, digital tools and infrastructure drive productivity and innovation. A robust digital ecosystem attracts businesses, supports startups and creates high-paying jobs.

We often forget that start ups and small businesses can help us create more new jobs than the traditional whales which we try to bring in with our economic development incentives. Successful tech start ups can grow jobs, and at the same time, work with our state agencies and local governments to solve problems.

The Secretary of Technology position must make it easier for start ups and smaller tech companies to get through the procurement process so they can more easily share their ideas. I have been able to see this pattern play out in Morrisville with Smart City Initiatives. Small tech companies like Varidx have partnered with Morrisville, and now our town is a nationally recognized leader in Smart City Initiatives.

RIOT, under the leadership of Tom Snyder, has been able to implement successful accelerators, which assist in growing start ups with a more civic focus to help local governments address many challenges and enhance the quality of services to residents. The Secretary of Technology needs to replicate these efforts at the state level.

In fact, during his AI fireside chat, John Chambers reminded us that India's entire economic plan was build on a Digital India. Nine years later, under Prime Minister Modi's leadership, India is now the third fastest growing economy in the world and Chambers predicts that it is on its way to number one. Digitization has accelerated on line payment systems, smart cities and start ups at a much faster pace than many nations in the world. (Last year, India had 81 unicorn start ups valued at $1 billion)

In many ways, North Carolina can learn much from India and the strong connection between digital transformation and economic success.

Equity and resilience

Digital access is no longer a luxury; it is now a absolute necessity. Whether it’s students attending virtual classes, patients accessing telehealth or entrepreneurs building online businesses, connectivity determines opportunity. Addressing the digital divide ensures that every North Carolinian can participate in and benefit from the 21st-century economy. The COVID-19 pandemic underscored the importance of digital infrastructure. Remote work, online education and telemedicine have become lifelines. And now, as we rebuild Western North Carolina from the aftermath of Hurricane Helene, technology will be important in our resilience moving forward.

On a personal note, I have known Stein for over 15 years, and the core to his public service is that no matter where someone comes from in North Carolina, they can achieve their dreams. Stein's vision for a more inclusive and equitable North Carolina can be achieved through bold vision and leadership from the Secretary of Technology.

Efforts must continue to close the digital divide by addressing affordability and digital literacy. I commend Weaver and his team for making broadband access one of the top priorities for the agency. Deputy Broadband Secretary Nate Denny and his team have successfully deployed much of the $1 billion of ARP broadband money across North Carolina, resulting in high-speed broadband for over 25,000 households/862 businesses across 33 counties.

The secretary and her team must continue to subsidize internet access for low-income households, provide free or low-cost devices and invest in community-based digital literacy training programs. We must ensure that every household in North Carolina has access to high-speed internet by 2030. Broadband expansion efforts must include continued partnering with private sector providers, expand state and federal funding for rural broadband, and incentivize innovation in last-mile connectivity solutions.

Making NC a smart state

The secretary and the Department of Information of Technology must leverage technology to improve quality of life, from traffic management to public safety. As we continue to expand broadband, we can also work towards accelerating Smart City Innovation across the state. I would categorize this effort as the North Carolina Smart State Initiative. The cities and towns that do not execute these initiatives will leave the residents they serve behind and will go against our goal of a more diverse and inclusive North Carolina.

We must pilot Smart City initiatives in urban centers and extend similar solutions to rural areas, ensuring inclusivity.

AI task force

I would encourage Piccone and the governor to establish a North Carolina statewide AI Task Force composed of representatives from government, academia, industry and civil society to guide the responsible development and deployment of AI technologies. This board must provide oversight and maintain public trust in AI systems and will need to focus on data privacy, security and ethics standards.

Finally, our technology department must pilot AI-driven programs in areas such as predictive maintenance for infrastructure, fraud detection in public benefits and AI-driven chatbots for citizen services across all state agencies and must also benchmark best practices for local governments.

Citizens are looking for easier access to services. One agency that needs to improve in this regard is our Department of Motor Vehicles and I am certain that technology can go a long way to make this happen.

Aggressive AI job creation

In addition, the AI task force must also be focused on accelerating venture capital investment into AI start ups to grow jobs. I think growing small tech start ups is desperately needed at a time when we are seeing the larger economic incentives fall through. Infosys has joined the likes of Microsoft, Syneos and a whole host of others as they pulled out of their $22.4 million incentive deal.

At the NC Idea Summit last November, data from a report from the Secretary of State's office revealed that if we increased the performance of small business and start ups by only 5%, we could create more than 24,000 new jobs in North Carolina.

One idea is to establish an AI Innovation Hub in the Research Triangle Park (RTP) to foster collaboration between industry, academia and government. We can follow the model put in place by RIoT, that has had success in incubating start ups, many of them working with local governments to solve problems.

Piccone can work to make it easier for smaller companies to work with state government through continuous improvement and streamlining our procurement process. DIT can work with NC Commerce to offer tax credits and grants for companies that invest in AI research, development and deployment in North Carolina.

At the end of the day, I believe that we must attract AI-focused companies and startups to North Carolina through incentives and innovation hubs.

North Carolina should be a hub for emerging technologies like artificial intelligence, blockchain and green tech.

Workforce development

With AI automating away many jobs, it is imperative that we build a workforce ready for the jobs of the future. Partnering with community colleges, universities and companies like IBM, SAS and Google, which have a strong presence in the Triangle, to create AI certification programs will be even more important moving forward to prepare North Carolinians for tech careers and the jobs of the new economy. I was very encouraged to hear Wake Tech President Dr. Scott Ralls discuss on WPTF Radio last week the strides Wake Tech is making in AI workforce training programs and certifications. We must continue to expand STEM education, support re-skilling programs for workers displaced by automation, and create partnerships between tech companies and community colleges.

Cybersecurity and digital trust

North Carolina must protect residents and businesses from cyber threats. Efforts must continue to strengthen state cybersecurity infrastructure, provide resources for small businesses to improve their defenses, and educate the public about online safety. Once again, the secretary role can be expanded to go beyond the state agencies and more outreach on the importance of cybersecurity needs to go out to local governments and municipalities. Given the recent ransomware incident in Apex, I am convinced that local governments must be more focused on the cybersecurity issue.

The role of the Secretary of Technology

The Secretary of Technology must act as a visionary leader and a bridge-builder, bringing together public and private stakeholders to implement this agenda. They should advocate for state and federal investments in digital infrastructure and foster partnerships between universities, community colleges and tech companies. Our Tech Sec must champion policies that promote innovation while protecting privacy and security.

The path forward

A Digital North Carolina is not just a technology initiative; it is a vision for our state’s future. It ensures that North Carolina remains a leader in innovation while creating opportunities for all our residents. North Carolina stands at the forefront of a transformative era where technology will drive not only economic prosperity but also equity, education and sustainability, which are all critical components of Gov. Stein's agenda and vision for North Carolina.

By prioritizing universal broadband, equity, smart solutions, workforce development and cybersecurity, we can build a state where everyone thrives in the digital age.

Our governor and his team must be passionate about harnessing this potential to ensure that every resident — regardless of geography or background — can thrive in our state’s digital economy.

My final point, and the most important one, is that our Secretary and Department of Information Technology cannot make true digital progress for our state until we come up with a new, more sustainable funding model. Only 12 percent of the $79 million department budget is funded by the State General Fund. The majority of funding comes from recovery of costs from state agencies and local governments for IT services and staffing and fees collected from telecom vendors for 911 services.

I know we can do better. We must.

Our General Assembly must invest more in technology so we can truly build a Digital North Carolina that creates the jobs of the new economy and provides opporutnities for all our citizens.

The time to act is now. North Carolina’s economic future depends on it.

Tech leaders, please send us your ideas!

Governor Stein and Secretary Piccione, let's get to work!

Steve S. Rao is a council member at large and mormer Mayor Pro Tem for the Town of Morrisville and an opinion writer for WRAL TechWire. He served on the board of the New American Economy, now the American Immigration Council, and on the NC League of Municipalities Race and Equity Task Force. He is a regular contributing writer to WRAL TechWire and is a graduate of the 4th cohort for the Hunt Fellowship.