AI is becoming increasingly prolific in the public sector — and local governments are no exception to this rise. Local governments have the opportunity to streamline processes, enhance impact, and improve service delivery for customers with AI solutions. In particular, AI can expedite permitting and development review processes for both applicants and agencies, creating smoother customer experiences and helping teams deliver community development services more efficiently. Our experts discuss key areas AI can enhance development code permitting, challenges with implementation, and how your agency can get started.
Development code permitting meets AI: Use cases and benefits
AI can drive customer success for homeowners, developers, and applicants during various stages of the permitting and development review process, including application submission, plan review or development review, inspections, approvals, and ongoing compliance. Here are a few considerations to help you understand the AI-related benefits of development code permitting.
Application submission and compliance
Application intake processes traditionally pose a challenge for public sector building, planning, and licensing teams. Incomplete applications, unclear requirements, and manual review bottlenecks result in delays and frustration for both applicants and staff.
AI presents several opportunities to streamline these processes for customers. First, AI can help applicants define what they can and can’t build based on an agency’s zoning, land use and development codes for property owners and renters. Using digital self-guided permit application tools, applicants can also more easily determine the applications necessary for their project through a series of automated questions.
Agencies can also use AI to automate the initial review of applications and provide real-time feedback to applicants. These AI system tools can instantly flag missing information, detect inconsistencies, and guide applicants to resolve issues before their submission reaches a human reviewer. As a result, applicants receive clearer instructions and can address potential problems early, reducing the likelihood of rejection or delay.
Customer service
Community development departments are under increasing pressure to deliver fast, accurate, and transparent services. AI can help meet these demands by automating routine tasks, freeing up staff to focus on more complex and customer-facing responsibilities.
For example, AI tools can detect code conflicts and assess design compliance, generate priority scores for enforcement, and enable staff to spend more time educating residents about prevention. Similarly, plan reviewers and inspectors can use AI to conduct initial reviews of building plans and documents, speeding up approvals and improving accuracy.
Prior to permit issuance and permit closeout, AI can also support an agency’s quality checks to make sure the customer receives accurate information on a project’s status to prevent delays or unforeseen costs for compliance.
Decision-making and long-range infrastructure planning
By providing data-driven forecasts, AI empowers departments to improve decision-making and strategic planning that ultimately benefits the entire community, ensuring fair and accurate development costs. Departments can leverage AI solutions to analyze infrastructure demand, predict population growth, and assess environmental impacts. These insights help leaders allocate resources, plan budgets, and anticipate service demands with greater confidence to prevent emergency tax increases.
Community engagement
One of the most transformative aspects of AI is its ability to enhance community engagement. AI-powered chatbots can answer resident questions and collect feedback on proposed projects while sentiment analysis tools help gauge public opinion. These technologies ensure that community voices are heard and considered in decision-making, fostering greater transparency and trust between government and constituents.
Implementing AI in local government: Challenges and considerations
Integrating AI into your existing processes can raise several challenges, but the right approach can help you address common roadblocks associated with adoption. Even with strong technical expertise, implementing AI tools takes time and demands deliberation. Some key challenges when considering adoption include data management, change management, ethics, and leadership advocacy:
- Data management. Departments must ensure that data is accurate, secure, and used responsibly, particularly when customer data is involved. Establishing transparent AI systems with clear explanations can help your team understand the rationale behind AI-powered decisions and build trust in your AI tools to support successful adoption.
- Change management. Staff training and change management are equally important. When introducing new AI tools in your community, workshops and collaborative initiatives can help build AI literacy and foster a culture of innovation.
- Ethics. Hand in hand with proper data management is supporting ethical AI principles. Including a “human in the loop” approach can help your team screen for potential bias and support equitable analysis to ensure speed to innovation doesn’t come at the expense of ethical policies.
- Sponsorship. Staff services are often siloed by department, which can sometimes cause missed opportunities for agencies to apply improvements in another area that could create value across the organization. Strong leadership advocacy ensures that success isn’t siloed. Leaders should champion successful AI applications in one area and support usage and adoption in other departments, supporting consistent and up-to-date customer experiences across the organization.
Getting started with AI
AI adoption starts with getting to know your customers. Implementing AI can be a significant undertaking, and it’s important that your investment enhances value for your customers. Does your AI technology enhance customer experience, simplify processes, and save valuable time? Educating your team on appropriate AI use cases can help ensure the right questions are surfaced during selection and evaluation.
Next, pilot AI tools for specific tasks that align with your core functions. Common use cases of AI in local government include permit processing or citizen inquiries, but there are countless opportunities to use AI to streamline operations and enhance productivity. Invest in training and share best practices across all code review and inspection disciplines.
Lastly, engage the community often. It’s important to test AI solutions with end-users to ensure that they meet real needs and mitigate bias. Collaboration with peer organizations and participation in professional networks can provide valuable support and resources.
Responsible innovation is key
AI isn’t just for technologists — it’s a practical tool for every community development department. Training your team on proper AI governance policies can help ensure your approach supports responsible AI usage and minimizes challenges associated with adoption. By embracing AI thoughtfully and proactively, local governments can deliver better services, make smarter decisions, and strengthen public trust.
