Artificial Intelligence Holding Key to Resolving Financial Struggles in Cities - Provided It's Given the Opportunity
In the ever-evolving landscape of urban life, artificial intelligence (AI) is making a significant impact. The Bureau of Labor Statistics estimates that there are roughly 15 million local government workers, a record high. However, the advent of AI in government services could potentially displace millions of these workers, sparking resistance from those affected.
Across the United States, city and county governments are already embracing AI for a multitude of tasks. AI is being used to improve the performance times of city services, track permitting processes, identify needed infrastructure repairs, and even predict homelessness. For instance, Los Angeles County has piloted a predictive AI model to identify residents most at risk of homelessness, ensuring that 86 percent of the pilot's clients have retained their homes.
The benefits of AI are not limited to efficiency gains. It can also improve student learning, enhance public safety, and boost government efficiency. In education, AI has the potential to play a transformative role, particularly in individualized tutoring, which education research consistently shows improves student performance.
However, the implementation of AI raises concerns about job displacement and its impact on income-tax receipts, especially in high-income metros. City audit authorities are urged to conduct a rigorous analysis of income-tax sources to assess AI's potential risks and opportunities for future revenue.
The National Education Association, the nation's largest teachers' union, and AFSCME, the nation's largest municipal workers' union, have both issued policies stating that AI-enhanced technology should aid, not replace, human workers. They advocate for a meaningful, decision-making role for labour in the use of AI in the workplace through collective bargaining at every stage of the process.
Cities must develop workforce strategies that address the generational shift in the economy caused by productive AI. This includes conducting a comprehensive review of their local labor markets to identify tasks vulnerable to automation. For example, Honolulu has implemented new AI systems for its building-permitting process, lowering its backlog by 70 percent and reducing wait times by a third. Denver is also upgrading its development review systems to partially automate key tasks, saving 50 percent in time and helping the city handle a surge of applications for accessory dwelling units.
The impact of AI requires a nuanced analysis beyond traditional workforce studies, focusing on the granular unit of tasks. Tampa Bay is evolving its emergency response systems to incorporate AI, optimising response times of fire departments and prioritising the most important cases for dispatchers. Washington, D.C. is implementing AI into the visual inspection of critical infrastructure like water mains and sewage pipes, allowing the district to find leaks earlier to save on maintenance costs.
However, the financial impacts of the COVID-19 pandemic have strained city budgets, with American cities running deficits in 2024 and new municipal debt issuance reaching a record $513 billion. Specific information on which U.S. cities had budget deficits in 2024 due to the pandemic is not available in the provided search results.
In response to these challenges, California State Senator Jerry McNerney introduced the No Robo Bosses Act, aiming to prevent machines from impacting workers' livelihoods and working conditions. The Act is a testament to the ongoing debate about the role of AI in our society and the need to protect workers in this rapidly changing landscape.
In conclusion, while AI presents opportunities for improving city services and boosting efficiency, it also poses challenges, particularly in terms of job displacement and income-tax receipts. A balanced approach that considers the impact on workers and the economy is crucial in navigating this shift towards a more automated future.
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