A Starting Point for Your City’s AI Policy

Artificial intelligence (AI) is changing how our cities work, offering new ways to save time and improve efficiency. But as AI tools become more common in city operations, they also raise important questions about data privacy, accuracy, and accountability. 

Whether city staff are using AI to draft communications, analyze information, or assist with everyday tasks, it’s important cities establish clear expectations for how the technology can and cannot be used. 

To help navigate these challenges, the League of Minnesota Cities offers a model artificial intelligence policy designed to support the responsible, transparent, and lawful use of AI in city operations. 

Why does your city need an AI policy? 

AI can be a valuable tool for city staff, but it comes with risks. Information entered into AI platforms may be retained by third-party providers presenting a data security risk, automated recommendations may reflect errors and biases, and AI-generated content can be based on incorrect sources. 

For cities, these risks go beyond getting an answer wrong. Cities also have legal responsibilities when using AI, including compliance with the Minnesota Government Data Practices Act (MGDPA). Government data created with the assistance of AI is likely subject to applicable data practices requirements. 

Without clear guidelines, city employees may unknowingly expose sensitive information or rely on AI-generated content that hasn’t been properly reviewed. Establishing a clear AI policy helps employees understand when AI can be useful, what precautions they must take, and emphasizes the importance of protecting government data and maintaining public trust. 

A starting point for your city’s AI policy 

Cities don’t have to build a policy from the ground up. 

The League’s model AI policy provides a framework for establishing expectations around the use of AI in local government work. Cities can use the model as a starting point for developing guidelines that reflect their own operations, technology, and needs. 

The model policy addresses the following considerations:

• Permitted and prohibited uses: The model offers two options for establishing guidelines around when and how employees may use AI. 

• Data privacy and security: The policy defines low-, moderate-, and high-risk data and outlines precautions for protecting sensitive information when using AI tools. 

• Human oversight and accountability: AI can assist with city work, but employees remain responsible for reviewing, verifying, and approving AI-generated content and decisions. 

• Transparency and disclosure: The policy includes guidance on disclosing when AI has materially assisted in creating documents, reports, or public-facing communications. 

Not every city will use AI in the same way, and there’s no one-size-fits-all approach to managing it. The League’s model policy includes customizable language and optional provisions so cities can establish guidelines that reflect their own operations, resources, and needs. 

Cities should review and adapt the model in consultation with their city attorney before adopting it. And because AI technology continues to evolve, cities should regularly review their policies and update them as needed. 

Explore additional AI guidance 

Need further guidance? In addition to the model policy, the League’s Cities and Artificial Intelligence (AI): What You Should Know resource addresses other important considerations for local governments, including data classification, compliance with the MGDPA, and the risks of relying on AI-generated information. 

AI may change how cities carry out some of their work, but it doesn’t change their responsibility to protect government data, make informed decisions, and serve their communities. 

Explore the League’s AI guidance and download the model policy to help your city establish clear expectations for using this evolving technology.