AI Academy Week 1: Building an AI-Powered Public Sector Organization PDF

B U ILD ING AN AI - P OW ERED PU B LIC S EC T O R ORGANIZATION Robert Hiett Executive Director Upper Coastal Plain Council of Governments  PRESENTATION OVERVIEW 1. The Role of AI in the Public Sector 2. AI Use Case Overview 3. Implementation, AT Tool Types, and Price Models 4. Public...

B U ILD ING AN AI - P OW ERED PU B LIC S EC T O R ORGANIZATION Robert Hiett Executive Director Upper Coastal Plain Council of Governments  PRESENTATION OVERVIEW 1. The Role of AI in the Public Sector 2. AI Use Case Overview 3. Implementation, AT Tool Types, and Price Models 4. Public Sector Use Surveys & Use Cases 5. Best Practices & Implementation Roadmap 6. The Data Development Story 7. Generative AI Overview 8. Type and Cost Models 9. Required Skills 10. Optional Resources 11. Wrap Up  WHAT IS AI? Artificial Intelligence (AI) is a type of computer program designed to think and learn, enabling it to make decisions and perform tasks that typically require human effort, such as analyzing data, solving problems, or providing recommendations  AI’S TRAN SFO RM ATIVE PO TE N TIAL IN PUBLIC SE RVICE S Enhancing public Facilitating data- Ad d re s s i n g s oc i e t a l Examples of AI service delivery with driven policy making c h a l l e n ge s t h rou gh applications in public AI-driven efficiencies and governance p re d i c t i ve a n a l y t i c s services USE CASES ⚬ The public and private sectors have several types of day to day use cases in common. ⚬ AI workforce training could be developed using a core set of AI skills needed in both sectors. ⚬ Specialized branches of AI training could be developed once the core credential is completed.  Pu b l ic Se c t or U s e Cases Rural Transportation Planning: AI summarizes road condition data, analyzes traffic trends, and creates visuals like maps to support funding requests and prioritize critical projects. Example: A county uses AI to identify dangerous intersections and plan safety improvements. Community Policing: AI analyzes crime trends, identifies hotspots, and integrates community feedback to allocate law enforcement resources effectively. Example: A small-town police department uses AI to predict theft patterns and target patrols. Grant Application Assistance: AI identifies funding opportunities, drafts applications, and tracks deadlines to ease administrative burdens. Example: A council uses AI to draft a broadband grant proposal, saving time and effort.  Pri v a te Se c tor U s e Cases Customer Service Automation AI can handle routine customer inquiries, process transactions, and provide real-time support, freeing up employees for more complex tasks. Example: A medium-sized retail business uses AI to answer frequently asked questions, allowing staff to focus on in-store customer interactions. Supply Chain Optimization AI analyzes inventory and sales patterns to help businesses predict demand and reduce waste, ensuring stock levels meet customer needs. Example: A local grocery chain uses AI to anticipate seasonal demand, ensuring shelves are stocked with high-demand items like holiday baking supplies. Customer Feedback Analysis AI reviews customer feedback to identify what customers value most, helping businesses highlight strengths and improve offerings. Example: A home improvement store finds frequent praise for its staff’s expert advice and uses this insight to create a marketing campaign, increasing sales and customer loyalty.  S UC C ESS S TO RI ES Artificial Intelligence (AI) has the potential to significantly enhance employee productivity in public sector organizations. A study by MIT Sloan School of Management examined the impact of generative AI on highly skilled workers. Findings: Participants using AI tools experienced a 38% increase in performance compared to those without AI assistance. When provided with both AI tools and guidance on their use, performance increased by 42.5%. Implications: Employee time can be redirected to more complex tasks. Proper training and integration of AI tools are crucial for maximizing benefits. WHY AI IMPLEMENTATION CAN FAIL Lohrmann, D. (2024, November 10). What factors slow enterprise AI implementations? [Image]. Government Technology. Retrieved from https://www.govtech.com/blogs/lohrmann-on-cybersecurity/what-factors-slow-enterprise-ai-implementations  P UBL I C S E C TOR A I 2024 A significant number of public sector organizations are adopting Artificial Intelligence (AI) technologies, with a notable focus on Generative AI. 12% have already integrated Generative AI technologies. 30% plan to adopt Generative AI within the next 1–2 years. Primary Motivations: Improving operational efficiency (43%). Enhancing communications (29%). Advancing education and workforce development (28%). Enhancing citizen services (21%). Challenges: 85% of leaders express the need for a trusted partner to explore effective Generative AI applications.  NACO AI COMPASS – USE FREQUENC Y PE R S ONAL L IFE W O R K L IFE Source: NACo AI Compass Report 2024 NACO A I C O MPASS – FUNCTI ONAL AR EA USE Source: NACo AI Compass Report 2024 L E A G UE OF CI TI ES AI ADOPTI ON Source: National League of Cities 2024 Toolkit L E A G UE OF CI TI ES AI ADOPTI ON Source: National League of Cities 2024 Toolkit LI NKE D I N / MI CR OSOFT STAFF AI USE 2024 Source: Microsoft / Linkedin 2024 Work Trend Index Shado w AI – The Hidden R is k Shadow AI is the use of AI tools by employees without organizational approval or oversight Use of these tools might improve individual efficiency, their unregulated use can expose organizations to serious risks, including data breaches, compliance violations, and operational inefficiencies. Click here to read the full article!  N A V I G ATIN G C H A L LEN GES IN A I A D O P TION Addressing data Overcoming Bridging the talent and Ensuring public trust privacy, security, and bureaucratic and knowledge gap in AI and transparency in AI ethical concerns regulatory hurdles technologies systems I NTE RN AL RO A D MAP F O R I MP LEMENTATION Conduct an organizational AI assessment survey before doing anything! C OMPON EN T S O F I MPL EMENTATION ⚬ Use Case: Identify problems that need solutions, and establish a small pilot program. ⚬ Data Privacy and Security: Ensure that AI systems comply with data protection regulations and maintain citizen privacy. ⚬ Ethical Use: Develop guidelines for the responsible and unbiased use of AI in government decision-making. ⚬ Staff Training: Invest in training programs to help staff effectively use and manage AI tools. ⚬ Cost-Benefit Analysis: Carefully evaluate the initial investment and long-term benefits of implementing AI solutions. EMBRAC ING C ONTINUOUS LEARNING IN AI PROJEC TS Foster a Culture of Innovation: Encourage experimentation and learning from failures. Invest in Training and Development: Equip employees with the skills needed to leverage AI technologies. Collaborate and Share Knowledge: Promote knowledge sharing within and between organizations to drive AI advancements. THE DATA STORY  AI DATA HIERARCHY Core Knowledge & MODALITIES A new virtual employee!  Data Gathering Data Iteration Preparation DATA Model Monitoring Training CYCLE Model Deployment Evaluation Model Testing Improvement MACH IN E L E AR N IN G AB O U T CATS Core Knowledge Groups things based on labels or patterns  DEEP LEARNING CAT OR DOG Core Knowledge Data Layers & Attribute Features Trained on multiple data points about cats or dogs in order to get it right.  GENERATIVE AI | LLM Generates new information based on what it knows. Uses predictive and similarity analysis to draw conclusions User Question: Can you tell me about this image? Core Knowledge Yes! It is a cat AI walking on a sidewalk!  The Data Governance Environment Unstructured Data Structured Data Cannot be shown in Can be shown in databases databases. with defined fields. Images, audio, video, word Tax records, budgets, utility documents, emails, data, planning data, etc. spreadsheets, etc. Easy to query and requires Will require more storage less storage space. space. A challenge may be data Cumbersome to manage silos. and secure. Inventory, Organize, Strategize! CAPAB ILITIES OF GENERATIVE AI STR ENGTHS: Natural Language Understanding: Ability to comprehend and generate human-like text. Data Summarization: Condensing large volumes of information into concise summaries. Content Creation: Generating new content from known information. Answering Questions: Providing accurate responses to user queries. Data Analysis: Extracting and analyzing data from reports or datasets. ⚬ Including the ability to create visual charts and graphs 14 Text Generation: ⚬ Writing articles, stories, and reports. Data Summarization: ⚬ Condensing large documents. Conversational AI: ⚬ Chatbots and virtual assistants. Image Generation: ⚬ Creating images from textual descriptions. L I MI TATI ONS O F G E N ERATIVE AI Can produce incorrect or nonsensical answers. WEAKNESSES: Sensitive to input phrasing. Requires large amounts of data for training. Depth of understanding a topic or line of thought. CHALLENGES: Maintaining consistency in long conversations. Addressing biases in training data. 16 GOVERNANCE & POLICY TRAN SPAREN CY: FAIR NESS: ACCOUNTAB I LI TY : INC LU SIVITY: Clearly communicate Avoid and mitigate Monitor and evaluate Ensure the AI is the use of AI. biases. AI outputs. accessible to all users. DEVELOP AND IMPLEMENT AN ORGANIZATIONAL LEVEL AI GOV E RNANCE P O L ICY! USE CA S E : UC P COG AI GOVE R NANCE POLI CY KE Y P O L ICY CO MP O NENTS Ethical Responsible Defines AI Provides Oversight Ensures Accountability Includes Risk Assessment Click here to view the policy! Stand-alone Generative AI Assistants: ⚬Use foundational LLMs with enhancements for enterprise applications like single sign-on and data encryption. ⚬Accessed via web browsers and lack access to internal data repositories. ⚬Examples: ChatGPT, Claude, LexisNexis, Gemini. Integrated Generative AI Assistants: ⚬Highly integrated with workplace productivity platforms (e.g., Microsoft 365, Google Workspace). ⚬Can access and utilize internal data repositories. ⚬Examples: M365 Copilot, Adobe AI Assistant, Zoom AI Meeting Assistant. LLM as a Service: ⚬Designed for advanced users to integrate LLMs into their applications with customization for specific data sets and domains. ⚬Typically integrated via APIs and more flexible than the other categories. ⚬Examples: Azure Cloud AI, AWS, Google Cloud AI services. P RI C IN G MO D E LS P ER U S ER: FLA T M ONT HLY CONSUMPTI ON -BAS ED FEE PRICING: Basic cost calculations, but there is a Charges based on system usage, risk of carrying unused licenses typically measured in tokens (example: number of words or characters Staff training should be conducted processed) before wide scale adoption. Cost vs budget is less predictable Examples: ChatGPT, Claude, (example: do you know how much data Perplexity, Gemini. your entire organization will consume?) Some AI tools may have usage or token limits (example risk: what if you run out of usage for the month or year?)  PERPLEXITY Free to use at www.perplexity.ai. Great for research Verifiable responses A web browser on steroids CHATG PT CLAUDE Accessed at www.chatgpt.com Free to use at www.claude.ai Free model with limited capabilities Ability to interact with large files Advanced model costs $20/month Upload up to 5 files ) Upload files Summarize, edit, generate written Generate images and data visualizations Create customizable GPTs content PRIMARY AI INTERACTION METHODS Typing Input Vision Input Chatbot Voice Input File Upload AI Agents PROMPT ENGINEERING: The nontechnical definition of this means that the staff have the knowledge and skills to interact with and effectively use AI tools. No one needs to be a programmer to learn prompt engineering Teach “foundational level” prompt engineering, and don’t rely on cheat sheets from social media influencers. Knowledge can help staff as they think about data management and data organization for AI tool use. COMMON AI TOOL RISK U NT R A INED SECURITY S TAF F FEATURES DATA ADM INISTR ATIVE MANAGEMENT CONTROLS Leadership must understand AI too!! US E C A S E: Safe, Secure, and Affordable AI Ensures Confidentiality UC PC OG A I Optional Member Government Participation PLA TFORM Provision for “UCPCOG Affiliate” Governmental Entities Click here to see the press release! US E C A SE: PUBLI C FAC I NG AI S ER VICE S Click here to hear the podcast!!  OPTIONAL BOOKS Learn Prompt Engineering Train Your Staff to Prompt State/Federal Managers Local Govt Prompts Click here for the book! Click here for the book! Click here for the book! Click here for the book!  R O BE R T HI E TT E X E CU TI VE DI R E CTOR U P P E R COASTAL P LAI N COU N CI L OF G O VE R N M ENTS R HI E TT@U CP COG. OR G SOCIAL MEDIA https://www.linkedin.com/in/roberthiett/