I had just returned from the Local Government Reimagined Conference in Palm Desert, California, when I sat down to consider my column for this month’s PM, which is focused on sustainability and economic development. Sparks of innovation were ignited at that conference, as attendees uncovered and discussed ways that they might use artificial intelligence (AI) to enhance local government. I expect that leveraging AI will drive many of the best practice discussions at the upcoming ICMA Annual Conference as well.

Thinking Beyond

Sustainable economic growth remains one of the most important strategic elements in the portfolio of every local government leader and it’s exciting to consider how AI might be applied to this fundamental discipline. One key benefit of AI is that it gives leaders the ability to “think beyond.” So often managers are limited by access to data and the ability to fully analyze the information at hand. Using new AI applications, communities can upload their local information — current workforce, data about employers, local institutions of higher education, etc.—and assess potential contributions the community might make on not only a local but a regional and even global scale.

More importantly, AI may help identify gaps in the municipality’s comprehensive plan. For instance, the type of workforce needed to compete given a broader landscape may be lacking. This could then inform a partnership between the local government, the Chamber of Commerce, and community colleges to develop a curriculum to satisfy skills shortfalls.

This line of thinking also connects to ICMA’s continued programming around local government leadership for economic mobility and opportunity (EMO), made possible with support from the Gates Foundation. ICMA just launched our second EMO peer learning cohort to support members and their communities in advancing strategies to promote upward mobility for their residents. A special digital supplement to this issue, “Local Government Leadership for Economic Mobility and Opportunity,” also features lessons from the last year of EMO programming and commentary on future implications.

Predict vs. React

As a local government manager, I often felt that we were in a reactive mode, chasing bids and trying to create an incentive package that would make our municipality more attractive than one down the road. Rather, imagine using AI to help predict which growing business will be making investments and then to proactively seek partnerships that will lead to new opportunities. An organization called REDI Cincinnati has helped the region attract billions of capital investment dollars using this type of predictive analysis.

Another aspect of thriving economies is economic diversification, as Michael Huling from Clark County, Nevada, points out in his article. While he cited Las Vegas’s dependence on tourism, I can recall my own experience in Kalamazoo, Michigan. At that time, a major employer that also contributed heavily to the philanthropic life of the city abruptly departed because of a merger. We had to scramble to recover. Many of our members find their communities overly dependent on one company or one type of industry for their economic vitality. There are excellent examples of using AI for scenario planning, applying specific prompts to forecast potential outcomes.

It’s Happening in Pittsburgh

Allegheny County, Pittsburgh, and its surrounding townships and boroughs — the site of the 2024 ICMA Annual Conference — is a great example of an economy forced to diversify. After decades of being primarily dependent on the steel industry, the region steadily grew its expertise in areas such as healthcare, financial services, higher education, and high tech, including robotics. And the interesting thing about the area is its dedication to building green and working to create a “net zero” carbon footprint — a major transformation for the Steel City. In fact, a water park has been built on the site of a former steel mill along one of the city’s three rivers.

Looking at the schedule for the ICMA Annual Conference alone is reason enough to get pumped up about this unique time in the history of the local government management profession. Sessions on AI and thriving economies are planned for every day of the conference and many mobile workshops will take you inside some of the amazing innovations that have powered the Pittsburgh region’s new economy. One thing is for certain, when our members get together, the sparks of innovation ignite new ideas to improve our communities and the lives of our residents.

MARC A. OTT is CEO/Executive Director of ICMA, Washington, D.C.