Local Governments Urged to Safeguard AI Investments Amid Rapid Market Growth
Local governments are increasingly integrating artificial intelligence (AI) into their operations, particularly in areas like permitting, inspections, and plan review. However, the rapid expansion of the AI vendor landscape, characterized by numerous startups and overlapping products, mirrors past tech bubbles. This has led to concerns about the sustainability and return on investment of these technologies. Despite significant enterprise AI investments, a Massachusetts Institute of Technology (MIT) study found that 95% of organizations report no measurable returns. Local governments are advised to partner with proven vendors that offer stability and public-sector expertise to ensure long-term success and avoid disruptions if vendors exit the market. 
