Local governments worldwide are increasingly using artificial intelligence for customer service, operations, infrastructure, environmental management, and surveillance, according to a new report. In the United States, the City of Amarillo uses a virtual assistant handling about 16,000 resident enquiries each month, helping defer a US$1.8 million call centre expansion. In the United Kingdom, two councils use a chatbot named ELLIS to respond across more than 1,000 local government topics. Cumbria County Council introduced a tool to automatically process some parking permit applications and school invoices, saving over one tonne of paper in three months. In Sweden, Helsingborg City equipped waste-collection vehicles with AI image recognition to detect potholes. Boston adopted an AI system to optimise traffic signals, reducing average delays by 13.5% and unnecessary stops by 20% at some intersections. In Australia, Brimbank City Council uses computer vision on waste collection vehicles to identify damaged roadside assets. In China, Chongqing city uses an AI-enabled system to monitor vegetation and identify pest infestations. The report examines how AI is reshaping local government, noting that local governments remain accountable for outcomes even when AI systems make decisions. One London council uses an AI tool to cut the time social workers spend on writing case notes and assessments by up to 60%, while retaining privacy safeguards, consent and human review. The real test is whether AI is used responsibly, transparently and in ways communities can understand and trust.