For many public officials, artificial intelligence holds the promise to massively boost government operations. But the emerging technology also faces serious questions about how it can be used without compromising data security and user privacy or displacing workers.

For the past two years, San Jose has been helping government agencies across the globe navigate this whirlwind of rapid change through its GovAI Coalition initiative, an organization of more than 3,000 members representing 900 public agencies. Now the city wants to scale up the effort by setting it loose as an independent nonprofit.

Backers of the proposal, set to go before the City Council Tuesday, said nonprofit status would help the coalition more effectively raise the funding needed to advance its work drawing up guidance for governments as they begin to adopt AI tools into their operations. In addition, they argue such a transition could create a more nimble, effective organization.

“The current model employs very dedicated volunteers and the transition to a nonprofit will remove some of those constraints and allow dedicated staff to devote more time to delivering value for the coalition membership,” San Diego Chief Information Officer Jonathan Behnke, who serves on the coalition’s board, told San José Spotlight.

San Jose launched the GovAI Coalition in 2023, not long after the introduction of ChatGPT 3, as a way for government agencies to pool information about AI-powered applications. That includes how products collect data and protect user information, according to the city’s website.

Since its start, the coalition has operated as a government-led initiative, with San Jose Chief Information Officer Khaled Tawfik serving as chair of its board. Under the proposal, the organization would be reconstituted as a nonprofit corporation governed by an independent board of directors made up of public sector leaders. Tawfik would retain his position through the transition.

The transition would be supported by a $150,000 grant from the Packard Foundation, according to a memo outlining the proposal. While other philanthropic organizations have expressed interest in providing further financial support for the coalition, they are reluctant to do so as long as it remains government-backed, the memo said.

Through a spokesperson, Tawfik declined to comment prior to Tuesday’s council meeting.

The GovAI Coalition’s primary focus has been churning out a variety of policy documents offering governments guidance on AI technology. The organization has already compiled a wide-ranging trove of free resources for government agencies, including fact sheets explaining how to use AI assistants in government work, a guidebook for training public workers in AI skills and model documents cities can cut and paste for their own use in procurement or setting data sharing agreements.

The coalition has expanded its reach dramatically since its first meeting in November 2023, which drew together about 50 agencies. Now, it boasts a globe-spanning membership that represents a variety of government types — including cities, states and public transit agencies — scattered across the U.S. and multiple continents.

As the organization’s profile has increased, it has won plaudits from AI researchers monitoring the rollout of the technology among governments.

“Through the coalition’s network, government, civil society and industry leaders can share knowledge and discuss ideas, pushing the public sector towards responsible and trustworthy AI adoption and use in the delivery of public services,” Maddy Dwyer, a policy analyst with the Center for Democracy and Technology, told San José Spotlight.

San Jose has already experimented with AI tools to aid in an array of city functions, such as optimizing public transit, translating public meetings and reviewing official documents. More recently, the city has launched a search for a generative AI platform capable of helping workers speed up routine tasks.

But even as city leaders have enthusiastically embraced AI tools — arguing they help the city accomplish more despite longstanding staffing shortfalls — they’ve also run into pushback from workers. Many have expressed alarm over potential displacement risks, as well as the possibility of haphazard rollouts of new automated systems that could disrupt government operations.

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Alena Stern, chief data scientist of the Washington, D.C.-based think tank Urban Institute, said given the complex array of promises and pitfalls posed by generative AI, government agencies will only need more support as the technology matures.

“We’ve moved from generative AI to agentic generative AI, and as technology is changing, there’s a need to constantly be refreshing and updating,” Stern told San José Spotlight. “I can see the GovAI Coalition really playing that central role in distilling learnings across governments as folks are experimenting and exploring.”

Contact Keith Menconi at [email protected] or @KeithMenconi on X.