Jacksonville is stepping up its game by using artificial intelligence (AI) to make city budgeting smarter and more efficient. The city has teamed up with C3.ai Inc., an AI enterprise provider, under the leadership of Mayor Donna Deegan. This partnership, which kicked off in January, is all about making the budgeting process for the 2025-26 fiscal year more streamlined, focusing on three key departments: Public Works, Public Libraries, and Parks, Recreation and Community Service.
But that’s not all. The initiative also includes creating an AI-based tool for the Duval County Property Appraiser’s Office. This tool promises to offer quicker and more accurate property valuations, which should help improve property tax revenue forecasts.
Jacksonville is one of the first cities in the U.S. to integrate AI into budget planning. Mayor Deegan believes AI will allow for real-time financial analysis, going beyond the limitations of traditional quarterly reports. She puts it simply: “This is just a tool in that shed. It’s a powerful one, though, that allows us to manage taxpayer dollars with greater precision.”
Wanyonyi Kendrick, Jacksonville’s Chief Information Officer, highlights that previous administrations often overbudgeted or faced high spending at the end of the fiscal year. With AI, the city aims to predict costs better and streamline vendor contracts. Kendrick notes, “An interesting trend is around our larger vendors that they may not charge us consistently for similar work in different parts of the city.” This kind of analysis is tough for humans but manageable for AI systems.
The pilot project is working with three years of financial data from the involved departments. For the 2024-25 fiscal year, their budgets were $58.9 million, $68 million, and $40.86 million, respectively. The AI system will identify spending patterns to guide future budgets.
Phil Perry, the city’s communications officer, mentions that insights from the AI pilot will help in budgeting for services like road maintenance and reducing homelessness. Property Appraiser Joyce Morgan adds, “We are actively examining how these tools can be leveraged to enhance efficiency while maintaining the highest standards of accuracy and equity.”
This three-month AI pilot with C3.ai, costing $500,000, is mostly funded by contributions from Microsoft and C3.ai itself. If successful, the city might consider a long-term AI partnership, pending City Council approval.
There are always concerns about AI replacing jobs, but Deegan assures that the technology will complement, not replace, the workforce. The goal is to identify which departments need more staff and where efficiencies can be realized without filling vacancies unnecessarily.
Jacksonville plans to roll out an AI transparency dashboard soon, following its existing platforms for permitting and public works. Jim Taylor, CEO of the Florida Technology Council, praises Jacksonville for leading in AI budget integration, saying, “What they’re doing is pretty much leading the nation in this area.”
As AI technology continues to evolve, Jacksonville’s approach could become a model for other cities. While the potential for AI to draft budgets autonomously in the future is exciting, Taylor advises that building trust and technological maturity is crucial.
