In 2026, the question isn’t whether tribal governments will face cyber threats – it’s whether they’ll be prepared. That was the core message delivered in a recent TribalHub webinar featuring experts from Arctic IT and BakerHostetler. And it couldn’t be timelier.
The conversation was focused, specific, and practical: what should tribal government IT departments actually be budgeting for next year? The answer came through loud and clear: AI security, internal data governance and policies, and proactive legal planning.
Tribal Governments (and everyone) are facing smarter threats
Phishing emails used to be easy to spot. Now, thanks to generative AI, they can mimic your colleagues. Voice cloning technology can spoof a tribal chairperson’s call to finance. Deepfakes aren’t sci-fi anymore; they’re tools of the trade for modern cybercriminals.
During the webinar, the experts described a sharp rise in AI-assisted cyberattacks targeting tribal organizations. These attacks are becoming more sophisticated with social engineering tactics by leveraging tribal identities, leadership titles, and internal language to gain trust and access.
What’s worse: employees are unintentionally opening the doors. Shadow AI, the unauthorized use of AI tools like ChatGPT or browser plug-ins, is rapidly becoming one of the biggest security threats. And it’s happening in nearly every organization.
As Phillip Jackson from Arctic IT put it, “Shadow AI is the new shadow IT.”
AI is the risk – and the response
With AI adoption increasing rapidly across industries, the concern now is centered around data protection. Yes, AI is being weaponized. But it can also be your strongest defense if you invest in the right tools.
The panel emphasized Microsoft Purview as one of the most effective AI-driven safeguards available to tribal governments today. AI tools like Purview help organizations stay in control of their data, even when employees are moving fast and experimenting with new technologies. It can flag sensitive data being used in AI prompts, assign a risk score, and identify patterns of risky behavior before a breach occurs.
But these protections don’t come for free. They need to be built into your 2026 IT budget now, before they’re needed.
Legal exposure is growing and so are the stakes
Kimi Gordy of BakerHostetler provided a legal perspective to the discussion. Her message was clear: policies are not optional anymore. They’re legal armor.
By having formalized AI use policies and data governance policies, your teams have clear standards that apply when engaging with guests, tribal members, and other third-parties. Kimi shared that negotiating data governance standards, including the use of AI, is often a point of contention when contracting with third parties. Most major vendors and partners will have their own templates and don’t appreciate that tribal enterprises enjoy certain rights that a non-tribal business does not. The contracting process will often go more smoothly if you have your own agreed upon standards in your back pocket; you can negotiate for the use of your own data protection agreement and push back on terms more relevant to other jurisdictions (e.g., CCPA, GDPR). And if tribal data is accessed through unapproved tools or used to train an AI model, you will have built-in remedies.
What makes this especially sensitive for tribal governments is the sovereignty factor. Tribal data is cultural, legal, and sacred. Budgeting for AI policy development shouldn’t just be about checking a box. It should be about asserting control over your digital domain.
Kimi and Phillip urged tribal organizations to fund policy creation as a standalone budget item in 2026. Beyond simply an AI policy, that includes:
- AI Usage Policies: Outlining what tools can be used, how, and by whom.
- Data Classification Frameworks: Defining what information is sensitive and how it’s handled.
- AI & Security Training: Because a workforce untrained is a policy unenforced.
These are the new foundational protections when it comes to data. And when they’re written well, they serve both IT and legal functions at once.
Build governance into your budget
One of the strongest themes from the webinar was that tribal governments must move from reactive to proactive data governance, if they haven’t already. That means funding:
- Real-time monitoring tools
- Regular audits of AI and data use
- Role-based access controls
- Security posture assessments
- Incident response planning and exercises
These practices make a big impact on helping your organization avoid and mitigate attacks.
It’s about spending smarter. Kimi echoed the notion that ‘you don’t need to budget for panic if you budget for prevention.’
A culture shift from IT issue to governance imperative
A quiet revolution is underway. Cybersecurity is no longer the sole responsibility of IT teams – it’s a matter of governance, reputation, and tribal sovereignty.
The most successful tribal organizations have one thing in common: leadership buy-in. Their IT departments aren’t isolated. Their policies are co-created with legal, HR, and executive teams, and their staff understand how they play a role in security.
Phillip emphasized that Tribal leaders respond best to clear, concise, and impact-driven communication. Instead of lengthy technical explanations, IT teams should distill budget proposals into a simple one-page summary that highlights:
- The problem being addressed.
- The real-world impact on Tribal members, beyond financial costs, such as disruptions that could directly affect community services or wellbeing.
- The proposed solution and how it mitigates the risk or challenge.
This culture shift also requires internal champions. Whether it’s a Tribal CISO, a governance committee, or a cross-functional task force, tribal government IT leaders need accountability structures who can support the need and use of data security tools.
For 2026, cybersecurity is data sovereignty
Tribal nations have fought for sovereignty on land, in courtrooms, and in commerce. Now, that fight extends into digital space. And the only way to win is to prepare.
Cybersecurity is bigger than firewalls and passwords. It’s about identity, ownership, and autonomy. The 2026 budget is your blueprint for data protection and your declaration of independence.
If you have any questions or would like to speak to an expert, connect with Arctic IT today. Our certified consultants have extensive experience in working with Tribal governments and enterprises, and we can help you on your journey to a stronger, more secure 2026.
By Phillip Jackson, CIO at Arctic IT