Written by NCAC Board Member, Ryan Heimer

As artificial intelligence (AI) continues to reshape industries and institutions, its most profound impacts may not be felt in Silicon Valley or Washington, D.C., but on “Main Street”—in the cities, towns, and communities where public services are delivered and local economies thrive. A recent discussion led by Brenna Isman of the National Academy of Public Administration (click here to view the recording) offers a timely and grounded look at how AI is transforming public administration at the local level—and what it will take for communities to succeed. 

AI’s Promise—and Its Limits 

At the national level, projections suggest AI could significantly boost productivity and economic growth over the next decade. But as Isman emphasized, those gains are not guaranteed at the local level. Communities must take deliberate steps to ensure AI-driven benefits are equitably distributed and aligned with local needs. 

Rather than eliminating jobs outright, AI is more likely to reshape the nature of work—automating routine tasks while enabling workers to focus on higher-value responsibilities. However, this transition brings real risks, particularly for workers in roles susceptible to automation. The takeaway is clear: adaptation,not avoidance,is the path forward. 

Understanding the AI Ecosystem 

The report introduces a helpful framework for understanding how AI operates within communities. It identifies three key groups: 

• Innovators, who develop AI technologies 
• Implementers, who apply those technologies in real-world settings
• Enablers, who provide the infrastructure, policy support, and resources needed to sustain AI systems 

No single group can drive success alone. Effective AI adoption depends on coordination across sectors, including government, private industry, academia, and civil society. 

What Makes a Community “AI-Ready”? 

1. Strong Digital Infrastructure Reliable broadband, cloud computing capacity, and modern power grids are foundational. Without these, AI adoption simply cannot scale. From digital literacy to advanced technical training, communities must invest in reskilling and upskilling their workforce. Partnerships with universities, community colleges, and even public libraries are proving critical. 
2. Workforce Development
3. Open Data and Governance High-quality data is the fuel of AI. But as participants noted, “garbage in, garbage out” remains a real concern. Effective data governance, transparency, and privacy protections are essential to building trust and ensuring ethical use. 
4. Community Engagement Perhaps most importantly, successful communities treat AI not as something done to them, but something developed with them. Town halls, surveys, and public forums help ensure that residents understand—and help shape—the role of AI in their lives. 

Opportunities and Tradeoffs 

Communities that are successfully integrating AI tend to share several core characteristics: AI is already improving service delivery in areas such as customer service, lending decisions, and municipal operations. Case examples highlighted uses ranging from AI-powered loan processing in Kansas City to automation in manufacturing and recycling in California.

But these benefits come with tradeoffs. One of the most debated issues is the rise of data centers, which are essential to AI infrastructure but raise concerns about energy consumption, water usage, and environmental impact. Some states are even considering moratoriums on new data center development as they weigh economic benefits against community costs. 

The Workforce Question 

A particularly striking insight from the research is that AI often delivers the greatest productivity gains for less experienced workers, helping close performance gaps. This underscores the importance of accessible training programs and inclusive workforce strategies. Encouragingly, communities of all sizes are finding creative ways to build capacity. Smaller towns, often in partnership with nearby universities, are offering training programs and leveraging free tools such as online learning platforms. The common thread is not size or wealth—but commitment and creativity.

Governance, Ethics, and Trust 

As AI adoption accelerates, questions of governance loom large. Who ensures systems are fair? Who audits algorithms? How do we prevent bias and protect privacy? 

Emerging policies—such as requirements for chatbots to disclose that they are AI—signal a growing recognition of these challenges. Still, many public organizations are only beginning to grapple with the need for robust governance frameworks, ethical guardrails, and accountability mechanisms. For public administrators, this represents both a challenge and an opportunity: to shape AI in a way that reflects the values of equity, transparency, and public service. 

A Call to Action 

The overarching message from the discussion is one of urgency balanced with responsibility: 

• Start now—waiting increases the risk of falling behind 
• Invest in foundations—infrastructure, workforce, and governance
• Center equity—ensure all communities benefit, not just the most resourced
• Collaborate widely—no single entity can do this alone 

For communities like those in Appalachia and across West Virginia, the stakes are especially high. AI presents an opportunity to overcome long-standing barriers in education, healthcare, and economic development—but only if implemented thoughtfully and inclusively. 

Looking Ahead 

AI is not a distant future—it is already reshaping how governments operate and how communities function. The question is not whether to engage with AI, but how to do so responsibly. As public servants, the task ahead is clear: to ensure that this powerful technology strengthens, not undermines, the trust, effectiveness, and humanity at the heart of public service.