AI is transforming how cities can predict and respond to economic and workforce trends

Reflecting on a year of working with leaders hungry to use AI and products that rely on it, these questions keep coming up: How do we get started, and why is this any different from other technology innovations? To help answer that, I’m kicking off a series of posts to offer insights—and,where relevant, share tools—to help local government leaders navigate this space, while also giving private sector leaders a look at what’s top of mind for those in the public sector.

Predicting the weather used to rely on intuition—now, thanks to technology and data, we can make more accurate forecasts. We also have greater real-time situational awareness. Think about recent hurricanes like Milton and Helene.While some may debate the actions of humans, data and technology predictions,analysis, and situational awareness are far better than a decade ago.

The same principle applies to cities. Data should empower leaders to predict and respond to economic and budget challenges. There is more data, much of it low-cost or free, available. Yet, for many city leaders, the data they need is outdated, siloed, or too complex to turn into actionable insights. So, I'm asked, how do we turn the data we have, and the data other agencies have, into something we can use? My answer? I'm seeing a wave of generative AI and products built for that purpose, informed and designed by experts in cities and their needs.

Fundamental to all government is the budget process. Part of that is predicting the national and local economy. The data that is used often lags. We tackled this issue in the last city I worked in by leveraging automated data analytics connected to the most recent national, state, and local data, generating quarterly reports for the City Council. We went one step further, creating a comprehensive economic picture including housing, tourism, and other data sources into a dashboard that updated as data became available. It took a lot of work, and other cities wanted something similar, but it wasn't scalable using city staff.

Step onto the scene a new AI-powered product designed by a team of city economic developers and tech experts. Metropolis IQ Technology, Inc. offers a solution to help cities make data-driven decisions based on economic insights. Imagine having the same clarity for your city’s economy, workforce, and housing that we are starting to get in weather forecasting. With the MIQ Insights platform, city leaders can quickly access economic and workforce data, turn it into clear insights, and make informed decisions. I can also do more complex work like creating specialized reports that cities use to qualify for federal grants.

AI in this context isn’t about replacing human decision-makers; it’s about enhancing their ability to make informed choices. Predictive AI uncovers trends and correlations that might not be obvious, while generative AI automates reports, freeing up time for more strategic work.