Government Advisory Insights
Why Every Local Government Should Consider an AI Policy Before AI Use Becomes Widespread
Artificial intelligence is already finding its way into the day-to-day work of local governments, often before anyone has decided how it should be used. Staff are experimenting with AI tools to draft documents, answer questions, and speed up routine tasks. That isn't a bad thing. But without a clear policy in place, well-meaning employees can end up using these tools in ways that create risk for the entity. The time to set expectations is before AI use becomes widespread, not after.
Key takeaway: The best time to set AI guardrails is before AI use spreads across your team, not after.
Why this matters now
AI adoption tends to happen quietly and quickly. One employee tries a tool, finds it helpful, and word spreads. By the time leadership takes notice, the practice is already embedded. A policy written early gives your team clear guardrails while the stakes are still low, instead of trying to walk back habits later.
Protecting public data and resident trust
Local governments handle sensitive information, from resident records to financial data. Many free or consumer AI tools may store or reuse whatever is typed into them. A policy should spell out what information can and cannot be entered into an AI tool, and which tools are approved for government use. Residents trust you with their data, and that trust is worth protecting.
Making sure public funds support public work
When your entity pays for AI tools, those tools should serve government purposes. A clear policy helps ensure that AI subscriptions, and the staff time spent using them, are directed toward legitimate government work. This is exactly the kind of stewardship question that can come up in an audit, and a documented policy shows you took it seriously.
Keeping a person in the loop
AI can draft, summarize, and suggest, but it can also be confidently wrong. A good policy reminds staff that AI output is a starting point, not a final answer, especially for anything that affects residents, finances, or legal compliance. Someone should always review the work before it goes out the door.
What a starter policy can cover
You don't need a lengthy document to get started. A simple, practical policy might address:
- Which AI tools are approved, and which are off-limits
- What information may never be entered into an AI tool
- That AI use should support government work funded by the entity
- A requirement that a person reviews AI output before it is used or shared
- Who to contact when a new tool or use case comes up
Not sure where to start?
If your entity is starting to see AI show up in daily work, now is a good time to put a few sensible guardrails in place. We help local governments think through practical, right-sized policies that fit how your team actually works. If you'd like a hand getting started, reach out to Adam Lesch and our advisory team at alesch@jg.cpa. We're always glad to help.