In a rapidly evolving technological landscape, local governments are exploring how artificial intelligence (AI) can transform service delivery and operations. To gauge the sentiment and readiness of local governments in embracing AI, ICMA) conducted a survey of local government practitioners. With 635 responses, the survey provides valuable insights into the current priorities, potential applications, and concerns regarding AI in local governance.

The survey targeted a broad range of local government practitioners, with a majority of respondents identifying as chief administrative officers (CAOs) or assistant chief administrative officers (ACAOs). This representation underscores the strategic level at which AI considerations are being made. The respondents hailed from diverse community sizes, with 41% representing communities with populations between 5,000 and 24,999 residents, and nearly 10% from communities with fewer than 2,500 residents. This demographic distribution highlights the varied needs and capacities of different communities in adopting AI technologies.

Despite the increasing relevance of AI in numerous sectors, the survey revealed that almost half of the respondents (48%) consider AI utilization a low priority for their local governments. Only a small fraction, less than 6%, have prioritized AI as a significant focus in their service delivery strategies. This cautious approach reflects the challenges and uncertainties local governments face in integrating AI into their operations, ranging from budget constraints to skill gaps and infrastructure limitations. As one example, at the time of responding to the survey, Winnetka, Illinois (pop. 12K), had temporarily banned generative AI for official documents and tasks until a policy guiding its use by employees could be developed (by September, the village had drafted such a policy). 

In terms of organizational readiness, only 10% of the communities surveyed have appointed personnel specifically to oversee AI efforts, and 9% have formulated organization-wide policies to govern AI usage. These figures suggest that while there is an awareness of AI's potential, most local governments are still in the early stages of establishing the necessary frameworks and leadership structures to effectively harness AI technologies.

The survey identified several areas where AI could significantly enhance local government functions. Resident engagement emerged as the top area for AI potential, with 55% of respondents recognizing the value of streamlined service interfaces and AI chatbots for addressing frequently asked questions. Such technologies could improve accessibility and responsiveness, making it easier for residents to interact with local government services. Additionally, local policy applications, including budget modeling and policy analysis, were highlighted by 38% of respondents. AI’s ability to process large datasets and generate insights could revolutionize how local governments formulate and analyze policies, leading to more informed decision-making and resource allocation.

The survey also shed light on the barriers to AI adoption in local governments. A significant 77% of respondents pointed to a lack of awareness and understanding as the primary obstacle. This underscores the need for educational initiatives and capacity-building programs to equip local government officials with the necessary knowledge and skills to leverage AI effectively. Furthermore, the top concern among respondents is the potential misuse of AI for generating disinformation and misinformation, which could undermine public trust and policy integrity. This concern, cited by 70% of respondents, highlights the critical importance of developing ethical guidelines and robust safeguards to ensure the responsible use of AI in the public sector.

While budget constraints, lack of expert personnel, and general resident reception may be a challenge to overcome, local governments, both large and small, across the country are increasingly turning to artificial intelligence as a key tool to enhance service delivery. Some examples include:

• Officials in Chicago, Illinois (pop. 2.8M), have implemented an AI-powered chatbot to engage transit users and gather feedback on passenger demand, equipment maintenance, and riding patterns, providing valuable insights for transit leaders.
• Phoenix, Arizona (pop. 1.6M), is utilizing artificial intelligence to power its myPHX311 mobile application and resident engagement platform.
• In Wentzville, Missouri (pop. 44K), the local government is experimenting with generative AI tools to automate aspects of city communication, allowing staff to focus more on creative and strategic initiatives.
• To increase operational efficiency in Mt. Lebanon, Pennsylvania (pop. 35K), city staff are using artificial intelligence to expedite the invoicing process -- a process that previously took a week or more has been cut to just a couple of days.
• Sonoma County, California (pop. 489K), has established a county-wide AI governance policy that provides official guidelines on AI usage across various departments.

As AI development becomes more prevalent, ICMA is committed to providing resources and support for its members. By fostering an environment of continuous learning and ethical responsibility, ICMA aims to ensure that local governments are well-equipped to navigate the complexities of AI integration.