What you need to know about GenAI in local governments

To maximize the benefits of AI, you need clear guidelines. Not hard rules — more like practical guidance for usage. By keeping policies flexible, it enables your municipality to adapt to feedback and readily adopt new technologies. Strict prohibitions may discourage employees and cause them to disengage or do things on their own.

Local governments and AI

According to the 2024 MNP Municipal Report, local governments across Canada are considering implementing AI tools to unlock a range of benefits that include:

• Improving customer experience
• Streamlining workflows
• Increasing the speed of service delivery
• Automating tasks
• Leveraging data insights

Seventy-nine percent of respondents understand the future of local governance involves leveraging AI. Only six percent of those are formally using this technology, while 13 percent are planning to introduce AI into their operations. Thirty-six percent are interested but do not have plans quite yet.

A mere two percent are unaware of AI technologies.

Despite its potential, GenAI is low on the priority list for many local governments. There are several reasons for this:

Lack of expertise

Many leaders are not familiar with how to manage these tools and the potential implications for misuse.

Rapid changes

Policies can quickly become outdated with the nature of these tools and pace of change.

Budget constraints

Implementing AI can be costly, and many budgets are already stretched.

Knowledge gap

There’s still a lot we don’t know about these technologies, making planning difficult.

How to get started: Your critical first few steps

Effectively govern

How much governance is enough when it comes to GenAI? It depends. But we know effective governance is critical to the safe and ethical use of these tools.

Start by defining the parameters for your local government’s use of GenAI, including what is allowed and what’s not. Establish a governing body of business and technical leaders to stay informed on legal, regulatory, and ethical issues and considerations. Emphasize the importance of protecting the privacy and security of organizational and customer data.

Not all employees need the same level of data access, which is why access level permissions are essential. By restricting access to specific information to only certain employees, you reduce the risk of a security breach.

It is important to raise awareness and educate all employees regarding AI guidelines and what is expected of them. Encourage critical thinking and good judgement when using GenAI, and ensure everyone is aware and on the lookout for inaccuracies and incorrect responses.

By setting up a comprehensive governance framework, you can mitigate risks and help make sure the tools are used responsibly.

Set up your team for success

The success of GenAI in your organization rests with your employees, and they need to be given a strong foundation if you want them to succeed.

Provide your workforce with training, not only on specific AI tools in place, but on the reasons your organization is interested in exploring and using AI. That includes breaking down ethical considerations and potential biases. You may want to consider establishing a GenAI community of practice — a group who come together to share their knowledge, experiences, and best practices. This will enable your employees to collaborate to improve their skills, solve problems, and learn from each other.

By engaging your employees from the get-go, you make sure they understand the goals, expectations, and their role when it comes to GenAI. Encourage them to share their ideas and perspectives, and support them as they experiment with the tools while ensuring they stick to guidelines for data quality, privacy, security, and ethics.

Get the most out of GenAI

Before committing to an organization-wide overhaul or exploring the creation of a specific GenAI solution or project, you may find it helpful to start with specific use cases and pilot projects. This way you can test and scale capabilities, evaluate outcomes, and document lessons learned. A proof of concept can validate the value and set you up for a successful implementation.

Start by identifying a specific use case — the problem to solve or question you want answered. Connect with stakeholders to discuss the idea and any goals or outcomes you want to achieve. Understand and assess potential risks, data quality and availability, potential scalability, and who else should be involved.

With the support of stakeholders, move ahead with the pilot or proof of concept. Collaboratively assess the outcomes of the pilot as it relates back to the initial question, problem, or goal. Then discuss and document lessons learned and determine next steps. This iterative approach helps the organization understand the potential of this technology and how it can be used to achieve positive outcomes by fostering a culture of shared learning and empowerment.

Critical to success of these pilots and potential large-scale initiatives is understanding the legal, regulatory, ethical, and organizational implications of GenAI. By involving all relevant parties from the beginning, you ensure broad support and understanding — vital elements for a successful implementation.

There are cost implications to consider as you move from a proof of concept to operationalizing GenAI. Depending on the technology you select, costs can significantly increase once it goes live. So, before launch, it is imperative to determine that you are getting enough value to justify the cost. There are different approaches to model selection — like cascade-based optimization — that can lower operating costs by up to 80 percent while still offering a matching performance.

To get the most out of your implementation, consider working with a partner to customize solutions that suit the unique needs of your specific organization. This helps make sure GenAI seamlessly blends into daily operations, and will help you maximize the benefits, while maintaining engagement and compliance.

Move forward with confidence

When it comes to GenAI in your local government, it’s a matter of when, not if. And it all starts with clear guidelines. Here are some takeaways to keep in mind:

• Create flexible, yet clear, guidelines for use
• Set goals and engage your key players from the beginning
• Support your team through active engagement and thorough training
• Maximize the benefits and safety of GenAI with effective governance

Are you ready to take the next step in your GenAI journey?

The right partner can guide your local government through the process of selecting and implementing an AI model that meets your needs and the needs of your customers. MNP’s team of digital advisors are here to help you navigate this transformative technology and harness its full potential for your organization.

Reach out to our team of experts to take the next step in your GenAI journey.