Scary or Smart? The Real Risks of Artificial Intelligence You Should Know

7 min read

Scary or Smart? The Real Risks of Artificial Intelligence You Should Know

One of the most frequently cited risks of artificial intelligence is job automation. As AI systems become increasingly capable of performing tasks once reserved for humans, industries ranging from manufacturing to transportation are seeing shifts in workforce needs. In municipal operations, smart traffic systems, automated permit processing, and predictive maintenance tools can streamline services, but they also raise concerns about workforce displacement. According to a 2023 report by the World Economic Forum, 83 million jobs are expected to be lost globally due to automation by 2027, although 69 million new roles may also emerge during the same period, often requiring new skills and training programs¹.

For city governments, the key is not to resist automation but to manage it responsibly. Workforce transition strategies, such as upskilling programs and internal mobility pathways, can help staff adapt to new roles. For example, the City of Boston has implemented digital skills training for municipal employees to help them work alongside AI-powered tools used in data analytics and service delivery². By identifying positions most likely to be affected and investing in human-centered technology integration, municipalities can reduce disruption while enhancing service efficiency.

Deepfakes and Disinformation: A Growing Governance Challenge

Deepfake technology, powered by generative AI, poses a significant challenge for trust in public communication. These synthetic media tools can create convincing fake videos and audio recordings, which may be used to impersonate public officials or spread false information. A 2023 study by the Brookings Institution highlighted the risk of deepfakes in local elections, warning that manipulated content could erode public trust and influence voter behavior³. Municipal agencies must be prepared to address this emerging threat, especially during election cycles or public emergencies.

Practical steps include educating communication teams about signs of manipulated media and partnering with cybersecurity experts to monitor for AI-generated disinformation. The City of San José, for instance, has begun incorporating media literacy into its community engagement strategy, helping residents verify the authenticity of digital content⁴. Local governments should also coordinate with state and federal agencies to access forensic tools that detect deepfakes and establish rapid response protocols for public misinformation incidents.

Cybersecurity: AI as Both a Tool and a Threat

Artificial intelligence is transforming cybersecurity in two directions. On one hand, AI helps detect anomalies, monitor network behavior, and prevent cyberattacks through predictive analytics. On the other, malicious actors are also leveraging AI to automate phishing schemes, break into networks, and generate polymorphic malware that adapts to traditional defenses. A 2022 report by the U.S. Government Accountability Office noted that federal agencies saw a sharp increase in AI-enabled threats, with many local governments lacking the resources to keep pace⁵.

Municipal governments can respond by incorporating AI into their cybersecurity strategies while tightening governance around its deployment. This includes adopting AI-based intrusion detection systems, conducting regular audits of AI tools, and creating internal AI usage policies. The City of Los Angeles has introduced an AI Risk Framework that includes cybersecurity protocols and data governance measures to ensure safe implementation across departments⁶. Investing in cross-training between IT and operations teams can also strengthen organizational readiness against AI-driven cyber threats.

Loss of Privacy: Balancing Innovation with Rights

AI systems often rely on massive datasets to function effectively, raising significant concerns about individual privacy. In municipal contexts, AI is frequently used for predictive policing, traffic monitoring, and service delivery optimization, all of which can involve sensitive personal data. Without strong safeguards, these initiatives can lead to unintended surveillance or misuse. The ACLU has documented several cases where facial recognition systems deployed by local governments misidentified individuals, particularly among minority groups, leading to false arrests and public backlash⁷.

To address these concerns, cities should adopt privacy-by-design principles when implementing AI tools. This means limiting data collection to what is necessary, anonymizing personal information, and being transparent with residents about how their data is used. The City of Seattle has taken a proactive stance by publishing an annual surveillance report and requiring public input before deploying any AI-related technology that collects personal data⁸. These practices help build community trust while enabling responsible innovation.

AI’s Potential: Smart Services and Better Decision-Making

Despite the risks, AI offers significant benefits when used responsibly. Local governments are already harnessing AI to improve service delivery, enhance public safety, and optimize infrastructure. In Chicago, AI-enabled predictive analytics are used to identify buildings at risk of code violations, allowing inspectors to intervene before problems escalate⁹. This proactive approach not only saves resources but also improves outcomes for residents.

Another promising application is in traffic management. Pittsburgh’s use of AI-powered adaptive traffic signals has resulted in reduced travel times and emissions by adjusting lights based on real-time traffic conditions¹⁰. These examples demonstrate that, when thoughtfully implemented, AI can help cities become more responsive, efficient, and sustainable. The key is ensuring that these benefits are distributed equitably and do not come at the cost of privacy, fairness, or transparency.

Preparing Responsibly: What Municipal Leaders Can Do

For municipal leaders, preparing for AI’s impact means more than just adopting new technologies. It requires a strategic approach that includes policy development, staff training, and community engagement. Establishing an AI task force within the city administration can help coordinate efforts across departments, assess risks, and develop standards for ethical AI use. The City of New York has published an AI Action Plan that outlines steps for responsible innovation, including procurement guidelines and accountability measures¹¹.

Community engagement is equally important. Hosting town hall meetings, conducting public surveys, and collaborating with academic institutions can help ensure that AI initiatives align with residents’ values and needs. Municipal leaders should also prioritize partnerships with regional and national organizations to share best practices and access technical expertise. By taking these proactive steps, cities can harness AI’s potential while protecting the public interest.

Staying Ahead: Individual and Institutional Strategies

Individuals working in municipal government can also take practical steps to stay informed and engaged with AI’s evolution. Enrolling in professional development courses, attending workshops, and following updates from organizations like the National League of Cities or the International City/County Management Association can provide valuable insights and tools for implementation. Many universities now offer certificate programs in AI ethics and governance tailored to public administrators.

On an institutional level, cities should consider conducting regular AI readiness assessments. These evaluations help identify gaps in policy, infrastructure, and workforce capabilities. They also support budget planning by revealing where targeted investments will yield the greatest return. By staying proactive, both individuals and organizations can navigate the changing landscape of artificial intelligence with confidence and responsibility.

Bibliography

World Economic Forum. “The Future of Jobs Report 2023.” Geneva: World Economic Forum, 2023.
City of Boston. “Digital Equity and Skills Initiative.” Office of New Urban Mechanics, 2022. https://www.boston.gov.
West, Darrell M. “Deepfakes, Disinformation, and the Threat to Democracy.” Brookings Institution, July 2023. https://www.brookings.edu.
City of San José. “Community Engagement Strategy 2023–2025.” City Manager’s Office, 2023. https://www.sanjoseca.gov.
U.S. Government Accountability Office. “Artificial Intelligence: Emerging Cybersecurity Threats.” GAO-22-105873, 2022. https://www.gao.gov.
City of Los Angeles. “AI Risk Framework for City Agencies.” Office of the CIO, 2023. https://www.lacity.org.
American Civil Liberties Union. “The Dangers of Facial Recognition in the Hands of Government.” ACLU, 2021. https://www.aclu.org.
City of Seattle. “Surveillance Ordinance Annual Reports.” Office of the CTO, 2023. https://www.seattle.gov.
Chicago Department of Innovation and Technology. “Data-Driven Inspections.” City of Chicago, 2022. https://www.chicago.gov.
Rapid Flow Technologies. “Pittsburgh Smart Traffic Signal System.” 2021. https://www.rapidflowtech.com.
City of New York. “AI Action Plan: Responsible Use of Artificial Intelligence.” Mayor’s Office of Technology and Innovation, 2023. https://www.nyc.gov.