Knowledge Exodus from Boomer Retirement: AI Can Save the Day for the Government Sector

Red alert: Nearly half (49.2 percent) of the government and military workforce will retire or leave within the next five years, baby boomers being a large chunk of departing employees. The boomer exodus from the workforce—called The Great Retirement or the Silver Tsunami—is not just headcount walking out the door but operational expertise, institutional memory, and mission-critical knowledge disappearing into ether.

The Tsunami is not a distant threat. We are already in the thick of it, with 61 million baby boomers projected to exit the labor pool across industries by 2030. DOGE cuts, layoffs, and the government shutdown are making the knowledge crisis even more perilous.

Leadership Sees It. But Are They Acting?

The good news? Leadership awareness is high. A recent APQC (American Productivity and Quality Center) survey revealed that 82 percent of C-suite leaders in the government and military sectors view this knowledge loss as a “mission-critical,” “moderate,” or “strong” concern.

The bad news? Awareness has yet to translate into action. Despite the concern at the top, 83 percent of government agencies have yet to put a program in place to capture the expertise of departing employees at speed and scale.

Stuck in the Stone Age

Even when they get down to capturing knowledge, agencies use methods that are medieval with 77 percent of respondents relying on manual processes, flogging staff to document it or chasing departing employees for rushed exit interviews. They also seem to be unaware of AI-powered technologies to automate knowledge capture and management. No wonder survey respondents said that their top knowledge capture barriers were lack of technologies, time, and resources—exactly the challenges that AI can address with automation.

AI: The Solution Hiding in Plain Sight

While AI could solve the Silver Tsunami crisis at scale, adoption remains low in the sector with only 20 percent of respondents “operating” or “optimizing” it. Government respondents worry most about inaccuracy and compliance of AI-generated answers along with data privacy and security—problems that are eminently solvable with a modern, enterprise-class, FedRAMP-authorized knowledge management solution, which powered by AI and backed by a trusted content foundation.

And here is an irony: government entities paralyzed into inaction by AI accuracy concerns seem to be perfectly comfortable with the accuracy (or lack thereof) of knowledge gleaned from disparate knowledge silos of dubious quality in the organization!

When Knowledge Management and AI Join Forces

The breakthrough insight: AI and knowledge management are not competing strategies; they are force multipliers for each other. Robust knowledge management provides the clean, validated content that makes AI trustworthy. AI provides the automation and scale that makes knowledge management sustainable. “AI Knowledge” is the answer to the Silver Tsunami!

Here are two examples from our clientele:

• A large federal government agency was able to deflect up to 70 percent of incoming calls to AI virtual assistants, cut case handling time by 25 percent, and streamline online form-filling with AI knowledge assistance. These impactful improvements boosted contact center agent engagement to 92 percent, well above the industry average of 67 percent.

• Another mammoth federal agency supports 25 million users and 128,000 contact center agents and service staff, delivering consistent, compliant, and accurate answers through AI-guided service workflows.

From Cellar to Stellar

Government customer service has been dogged by incorrect, inconsistent, and non-compliant answers and poor experiences, with the sector consistently ranked dead last in industry benchmarks such as the Forrester CX Index. The Silver Tsunami can only make it worse. In the miliary context, it might mean the difference between victory and defeat. AI Knowledge can cut this Gordian knot for government agencies and elevate their CX and operational performance.