Artificial intelligence in state and local government: latest developments

State and local agencies are testing new artificial intelligence uses across services, education and infrastructure, even as leaders weigh governance, ethics and public trust. Here are the most notable moves and debates shaping the public sector right now.

Public-sector experimentation with artificial intelligence is accelerating across services and policy. A key debate centers on whether tools like ChatGPT could become a new front door for digital government now that payments are enabled in the interface, a shift that raises questions about trust, data governance and system architecture. In Pennsylvania, Gov. Josh Shapiro positioned the state as a national leader by emphasizing collaborations between academia, industry and government. Denver expanded CIO Suma Nallapati’s remit to explicitly include artificial intelligence, an organizational signal intended to speed responsible adoption inside city operations while keeping resident needs in focus. Meanwhile, a Baltimore County Public Schools incident put risk in sharp relief after an Omnilert artificial intelligence monitoring system mistook a bag of chips for a firearm, prompting calls for review.

Education and workforce initiatives are moving in tandem with oversight. Wayne State University is launching an institute focused on ethical and safe artificial intelligence deployment, regulatory compliance and avoiding unintended consequences, while EDUCAUSE outlined a 10-year action plan for generative artificial intelligence skills, ethics and collaboration on college campuses. In K-12, a RAND survey found 52 percent of Texas math teachers used artificial intelligence in instruction at least once last year, though more than 20 percent had no training. Louisiana officials convened a group to craft recommendations for classroom use. On the ground, Modesto, Calif., is offering Cafecito y Computadoras, bilingual classes that combine digital fundamentals with artificial intelligence literacy for up to 300 residents.

Research and infrastructure continue to expand. Johns Hopkins University researchers are developing tools that use large language models to analyze vast transportation datasets and predict how roadway changes could affect crash frequency. The University of Maryland, Baltimore, plans a 36,000-square-foot surgical training center that uses artificial intelligence to provide real-time feedback on skills, teamwork and procedures. Maine approved what it describes as its first artificial intelligence data center, a 115,000-square-foot facility at the former Loring Air Force Base, while St. Louis officials balked at tax incentives for a proposed data center amid sustained opposition. In the market, Darwin AI secured Series A funding for guardrails, compliance and agentic workflows for public agencies, and New Orleans startups report relatively strong artificial intelligence adoption while remaining cautious on hiring and office overhead. National recognition followed suit, with NASCIO honoring state projects from Minnesota to Washington for modernization in areas including artificial intelligence, 911 and resident-facing services. Voices pieces urged leaders to pair automation with empathy and preserve human override of artificial intelligence decisions.

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