How the AI is transforming local governments in the US: National Forum empowers prefectures

How the AI is revolutionizing municipal public management in the US

Artificial intelligence is no longer a privilege of large corporations or federal agencies. In a movement that can redefine public management in the United States, the National League of Cities (NLC) — a non-profit organization that represents more than 19,000 American cities, towns and municipalities — recently launched an AI forum for local governments. The initiative, announced in May 2024, has as its central objective capacitating city halls and municipal managers** to understand, adopt and implement AI technologies in a strategic and ethical way.

According to NLC, the forum appears in response to a 40% increase in interest for AI solutions between municipal governments** in the last two years. The demand reflects not only the search for operational efficiency, but also the pressure for more agile and personalized public services. "Cities are facing unprecedented challenges, from infrastructure management to social services. The AI may be a powerful ally, but guidance is needed to apply it responsibly," said a spokesman for the organization.

Read also: Mozilla Launches Open Source AI Client: A New Business Paradigm

AI benefits for local prefectures and governments

The adoption of AI in municipal governments is not only a technological trend, but an operational necessity. According to NLC data, 68% of U.S. prefectures already use some form of automation or data analysis in their operations, but only 22% of them have teams dedicated to exploring the potential of artificial intelligence. This gap represents a risk of loss of efficiency and, in some cases, of waste of public resources**.

Among the most promising use cases are:

The NLC points out that, although the benefits are clear, 73% of municipal managers still do not feel prepared to implement AI due to lack of technical knowledge or financial resources. This is exactly where the new forum comes into action.

NLC National Forum empowers prefectures in the use of AI

The National League of Cities AI forum is a free and collaborative platform** designed to offer practical resources and step-by-step guidance. Among the main pillars of the initiative are:

According to NLC, the goal is to reach 10,000 prefectures by the end of 2025, representing more than 50% of local governments in the US. "We want no city to be left behind in this technological revolution," the organization said.

Public sector AI: opportunities and challenges for municipal governments

The implementation of AI in local governments is not free from obstacles. In addition to the lack of technical expertise, there are concerns about early costs—although many suppliers offer cloud solutions with flexible payment models—and with the cultural resistance of public servers accustomed to traditional processes.

However, the benefits outweigh the risks. A report by McKinsey & Company estimated that the adoption of AI in the public sector can generate Economies of up to $1 trillion per year globally up to 2030, through greater efficiency and reduction of waste. In the U.S., this value could translate into US$ 200 billion annually** into economy for state and municipal governments.

Another critical point is digital inclusion. NLC emphasizes that AI solutions should be designed to beaccessible to all citizens**, regardless of age, income or geographical location. "Technology must serve as an equalizer, not as a barrier," the organization said.

Lessons from the American model: how Brazil can implement AI in local governments

Although the NLC initiative is focused in the USA, the theme resonates globally. In Brazil, where more than 5,500 municipalities face similar challenges — from the management of scarce resources to the provision of basic services — the adoption of AI also begins to gain traction. Companies like TOTVS and Serpro already offer AI solutions to prefectures, but the lack of a coordinated national strategy is still an obstacle.

American experience can be an inspiration. "The key is to create a collaboration network between governments, universities and technology companies," said a digital government expert heard by the report. "In Brazil, we already have isolated cases of success, such as the use of AI to map risk areas in São Paulo, but we need to scale these initiatives."

For Brazilian prefectures interested in exploring the potential of AI, NLC recommends starting with low-cost pilot projects, such as automation of administrative processes or implementation of chatbots for citizen care. "The important thing is to take the first step and learn from mistakes," concludes the organization.

IA in public administration: the future of efficient municipal management

The launch of the AI forum by the National League of Cities marks a historic moment in the relationship between technology and local governance. By democratising access to artificial intelligence tools, the initiative not only boosts the efficiency of public services, but also makes citizens’ transparency and confidence stronger** in institutions.

In an increasingly digital world, the question is not if the AI will be adopted by governments, but how it will be implemented. With platforms like NLC, city halls now have a roadmap to navigate this new era — as long as they are willing to innovate.

To learn more about how AI is transforming other sectors, check out: OpenAI Launches Artificial Intelligence Model for Cyber Security.

Fonte: GovTech