Developing AI Policies

December 19, 2024

On December 3, 2024, Centralina Regional Council hosted an informative Centralina Learns session titled “Developing AI Policies.” The session addressed the critical need for local governments to prepare for the rapidly evolving landscape of generative artificial intelligence (AI) technology.

The session spotlighted the “Generative AI Policy Guidance Document for Local Governments,” a comprehensive resource developed internally and informed by Centralina’s regional AI working group. This group, comprised of municipal representatives from the nine-county region, was established in early 2024 to pool expertise and research on AI. Over several working sessions, the efforts resulted in the creation of a structured framework and policy template to help municipalities navigate the opportunities and challenges of generative AI.

Attendees learned how the document offers practical insights and actionable guidance to establish effective policies for managing and implementing AI technologies. With this resource, local governments are empowered to confidently explore generative AI’s potential while mitigating associated risks.

The session underscored Centralina’s commitment to fostering regional collaboration and building local knowledge to address emerging technology trends. The Generative AI Policy Guidance Document is now available for member organizations to access via Centralina’s member portal.

Federal funds are commonly passed through state agencies in North Carolina before being awarded to local governments, which can make the original funding source less obvious. Before proceeding with a procurement, local governments should verify whether an award originates from a federal source. This determination affects compliance obligations, including procurement standards, reporting, and audit requirements.

When a construction or repair contract over $300,000 involves a building, the procurement and contract are subject to additional requirements under N.C.G.S. 143-128. Therefore, this question must be answered to determine whether the additional statutory requirements apply to this procurement scenario.

The micro-purchase threshold is a federal procurement threshold under which competitive procurement is not required. The default micro-purchase threshold is $15,000, but local governments may increase the micro-purchase threshold up to $50,000. An explanation of increasing the micro-purchase threshold and a template for the required annual self-certification is available here.