Local governments are turning toward artificial intelligence (AI) and data analytics to meet the needs of both citizens and employees, according to the 2025 MNP Municipal Report. The report examines how local governments are using AI — and the challenges and opportunities ahead.

We have created four insights based on the findings from the report to delve deeper into topics such as generative AI, cyber security, and AI-integrated ERP systems. Our team has rounded up these insights to help you address challenges, capitalize on opportunities, and navigate the AI journey with confidence.

Local governments across Canada are eager to embrace AI, but many do not know where to start. This insight discusses how generative AI programs such as Microsoft Copilot offer opportunities for local governments to leverage existing tools without having to adopt a completely new operating system. These solutions can help local governments modernize their operations while maintaining security, efficiency, and ease of use.

Local governments recognize AI’s potential to transform both the citizen and employee experience. According to the 2025 MNP Municipal Report, 31 percent of local governments are actively evaluating how to use AI within their organization. However, many are realizing they are not quite ready to implement a new system. This article examines how AI can transform the citizen experience and provides a roadmap to help guide local governments through the AI journey.

A strong governance framework is crucial to mitigate cyber security risks and protect sensitive data. While many local governments are eager to adopt AI technology, a third of respondents to the 2025 MNP Municipal Report state they have no formal policies or guidelines for AI use. This insight discusses the top challenges facing local governments regarding AI governance and cyber security — and shares best practices to help local governments protect their organizations.

Local government leadership is turning to AI-enabled ERP systems to simplify operations and support smarter governance as modernization climbs higher on municipal priority lists. This article explores how upgrading core platforms can unlock new efficiencies, remove data silos, and empower teams to make confident, evidence-based decisions that deliver real value to their communities.