AI: Threats & Opportunities (Part II)

The views expressed are those of the author and do not necessarily reflect the views of ASPA as an organization.

By Parisa Vinzant
Janaury 24, 2025

Local government officials have the obligation to prepare their communities for the negative impacts of AI innovation. As explored in Part I of this two-part series, chronic inaction at the state and federal levels to enact common-sense policy guardrails on AI is already causing negative ripple effects on local job markets. This trend is likely to mushroom as unprecedented innovation in generative AI continues unchecked. But through strategic preparation at the regional and local level, it may be possible for communities to harness more of the benefits from AI rather than suffer only the harms.

Make no mistake, AI innovation without regulation is an out-of-control wrecking ball and our regional economies will be the first to see the effects and feel them most acutely. In the situation we now find ourselves, local public servants—elected leaders and public administrators—are the most appropriate leaders to establish a productive path through this new AI frontier. This is due to every region having its own distinct mix of industry and workforce dynamics and overall economic health. Public servants at the county and local level are uniquely positioned to understand those dynamics and thus are best equipped to respond to the effects of AI innovation than individual workers whose ability to adapt may be hindered by such factors as income, health or disability status, age, family responsibility and education level.

County and regional governments play a vital leadership role in the coordination and planning efforts of community, economic, and workforce development programs. With the quickly emerging and thorny issue of AI innovation, county governments need to work closely with city and rural public servants to understand the impact of AI on their regional job markets. Only with this knowledge can they create opportunities for the greatest number of people within their communities to benefit from this new technology.

There are many ways that local government officials can respond to the complex challenges posed by AI innovation. The following steps are suggested as considerations for early-stage discussions or planning on this topic.

First, it is essential to gain broad knowledge from trusted sources on the subject. Regional and local public leaders must develop an understanding of how the last decade of AI innovation has impacted US regional labor markets in order to better estimate how current and future waves of generative AI innovation is likely to disrupt their unique labor market. Economists forecast that in advanced countries like the United States about 60% of jobs are expected to be exposed to generative AI, of which about half are likely to be negatively impacted. This presents a real threat to people’s ability to provide for themselves and their families.

Second, public officials would, ideally in collaborative partnership with a local college, university, or nonprofit, conduct an in-depth analysis of their specific regional or local labor market to assess the likely impact of generative AI. A key objective of this assessment would be to identify the likely percentage of workers negatively impacted by AI, including the sectors and demographics of impacted workers. Such analysis must identify areas of AI complementary—use of AI that augments and expands human capacity rather than replacing it—to target where skills growth is needed in their local or regional workforce. Further, an evaluation of a region’s existing workforce development programs should be done to identify existing resources that can be leveraged in any necessary re-training programs before new programs are proposed.

Third, another key consideration for the above assessment would be to evaluate the current strengths, weaknesses, opportunities and threats (SWOT) of the region’s digital access, economic development and workforce development ecosystems. A city or county’s existing economic development and workforce development capabilities and/or initiatives are the natural starting point to drive this work forward to respond to the challenges of AI innovation. Leveraging existing resources makes this work easier and more efficient and creates buy-in for the effort. Similarly, these public servants would need to have a full picture of the region’s current state of digital connectivity, including its community’s access to affordable and reliable internet and internet-capable devices as well as overall digital know-how. Even though the United States is an advanced country, there are still too many people in urban and rural areas across the country who don’t have internet, computers or digital skills. The ability of people to adapt to the volatility of generative AI is predicated on digital inclusion; otherwise, they’re severely disadvantaged or completely shut out of the AI frontier. For the greatest economic benefit, regional public servants must prioritize strengthening local digital inclusion initiatives in their AI planning response efforts.

The proposed actions may seem overwhelming at first, yet if done in collaboration with regional assets such as colleges, universities, nonprofit organizations and private industry, local public servants can more easily and swiftly identify short-term wins to build momentum and confidence while working on longer-term opportunities. After all, in this void of leadership at state and federal levels, it falls to regional public officials to protect and nurture the economic health and general wellbeing of their own communities.

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Author: Parisa Vinzant, MPA, works as a private and public sector strategist and equity/inclusion consultant. She also provides coaching to ICMA members. She served as a technology/innovation commissioner in Long Beach, CA. Parisa applies an intersectional equity lens in her writing exploring topics ranging from ethics, education, democracy, technology, and community engagement. All views are hers alone. Contact her at: [email protected].

 

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