Bringing AI to Main Street: Boosting Local Economies with AI

Many conversations around AI’s opportunities have focused on the global or national impact of the technology, but the real impact is being felt in local communities, on Main Street, and in city halls across the United States.

That's why Google sponsored a new report from the National Academy of Public Administration (The Academy), “Bringing AI to Main Street: Maximizing Artificial Intelligence's Positive Impact on Municipal Economies,” to help cities grapple with – and harness – AI’s potential.

The Academy found that AI presents a major opportunity for local communities to increase productivity and create jobs. The report highlights how communities can leverage AI to operate more efficiently, lower costs, and improve services.

The report presents a new framework for building "AI readiness” to help municipal leaders and businesses keep up with the pace of AI evolution, and embrace proactive planning and AI adoption strategies that are flexible for the different needs of their communities.

Incorporating AI will be an iterative process that requires regular community engagement. The framework emphasizes the importance of:

• Understanding Community Needs: Engaging residents and businesses through asset mapping and public forums to pinpoint local challenges and opportunities.
• Building a Strong Foundation for AI Adoption: Prioritizing critical support structures like robust digital infrastructure, a resilient power grid, and strategic workforce development programs will help communities adopt AI more seamlessly.
• Measuring What Matters: Using performance metrics and data to track progress and refine strategies, ensuring AI adoption delivers tangible benefits.

We’re already seeing this in places like Bowling Green – one of the fastest-growing cities in Kentucky – where they used an AI-powered public engagement tool to enable one of the largest online civic conversations in the U.S. to help them plan for the city’s future. This allowed them to quickly analyze and summarize the online discussions to deliver an actionable report in minutes, with key insights around community values and engagement topics

In Montgomery County, Maryland, where the local government launched an AI Center of Excellence (AICOE) to guide adoption. Following the AICOE’s establishment, the County engaged stakeholders to develop its Government AI Action Plan, which outlines four sections: AI strategy, AICOE structure and staffing, AI governance, and AI partnerships. Now, they’re working to integrate AI across their operations.

These initiatives show what’s possible and highlight what’s at stake. Without the right infrastructure, training, and guidelines, many communities risk being left behind.

The actions taken in city halls and county buildings will determine whether AI becomes a catalyst for economic growth across the country. We have a chance to ensure that power leads to a future of shared prosperity, and this report is the blueprint to help local leaders make it happen.

Read the full report here.