Generative AI is rapidly changing industries, and government employees are largely unsure how it applies to their jobs. InnovateUS, a nonprofit, trains government workers in AI and digital skills, aiming to improve public services. Workshops allow public servants to share experiences and learn how to use and build AI. Research from InnovateUS's Observatory of Public Sector AI reveals a significant gap between AI headlines and government reality. Many public workers are hesitant to use AI due to not understanding its relevance, application, or permission to use it. Managers also face uncertainty about AI, affecting their ability to guide employees. The study shows that beginners experience the largest gains in AI knowledge and confidence after training. Increased confidence correlates with envisioning more tasks for AI, but developing judgment for responsible use is crucial. While employees can draft reports and summarize documents with AI, connecting these tasks to improved public services is less common. Private-sector research shows individual AI productivity gains don't automatically translate to organizational profit. For government, the challenge is linking AI use to better public services and citizen trust. Further research is needed to assess long-term skill retention and impact on service delivery. Equipping public servants with AI skills can demonstrate the technology's public interest benefits, rebuilding trust in government through improved services and problem-solving.