Artificial Intelligence in Local Government: Opportunities, Challenges and Prospects
Abstract:
Artificial Intelligence (AI) is increasingly recognised as a cornerstone of digital transformation in the public sector, reshaping the way governments design policies, deliver services, and interact with citizens. Local gov ernments, being the level of administration closest to everyday social needs, are uniquely positioned to harness AI in areas such as waste management, traffic control, urban planning, and social care. By enabling efficiency gains, cost reductions, and data-driven decision-making, AI can address long-standing administrative chal lenges and contribute to sustainable and inclusive governance. International best practices—from Barcelona’s chatbots to Helsinki’s predictive energy systems—demonstrate that AI enhances transparency, responsiveness, and citizen satisfaction when implemented effectively. In Greece, progress has been uneven. While pioneering municipalities such as Trikala, Athens, and Thessaloniki have launched AI-driven projects, ranging from smart mobility systems to environmental monitoring, most municipalities still lack the infrastructure, resources, and strategies to adopt such technologies. This digital divide risks exacerbating inequalities between urban cen tres and peripheral or insular municipalities. At the same time, AI introduces significant challenges, including technological and organizational constraints, regulatory and ethical dilemmas, and the critical issue of citizen trust. Experiences from other countries, such as the UK’s welfare algorithm and Australia’s Robodebt scandal, highlight the potential risks of bias, opacity, and inadequate oversight. This article examines the promise and challenges of AI in local governance, with a particular focus on the Greek context. It argues that successful adoption requires not only technological innovation but also coherent national strategies, citizen engagement, ethical safeguards, and effective use of European funding instruments. Ultimately, AI should be approached not merely as a digital upgrade but as a transformative tool for strengthening democratic legitimacy, improv ing service delivery, and fostering resilience in local governance.
