San Jose mayor faces backlash over spending $35K for ChatGPT licenses for city employees

The funds were used to purchase 89 ChatGPT licenses at roughly $400 per account for municipal staff. According to the Daily Mail, Mahan’s administration has already used the technology for various city functions, including drafting talking points for public events, creating a multi-billion-dollar budget outline, and responding to resident complaints, such as pothole reports.

The city is planning to expand AI usage significantly next year, with a goal of training 1,000 employees to use tools like ChatGPT for tasks ranging from bus routing to crime-solving with surveillance footage.

“The idea is to try things, be really transparent, look for problems, flag them, share them across different government agencies, and then work with vendors and internal teams to problem solve,” Mahan told the outlet. “It's always bumpy with new technologies.”

Some were critical, saying: 'Here’s a real idea for AI that works: Replace Matt Mahan with AI,' one wrote on X. 'After all, AI has been writing Mahon’s speeches & possibly X posts & replies! An “authentic” mayor, indeed.' “If AI is being used in San José government, the results are invisible to the taxpayers footing the bill.

Mahan’s obsession with tech gimmicks is just a distraction from his failure to lead on the issues that matter: public safety, housing, and restoring pride in our neighborhoods,” another wrote.

“San José doesn’t need more tech talk. It needs results,” according to the Daily Mail. “Matt, pass that good stuff you are smoking. SJC is in a recession, a $43 million SJ budget deficit & all factors blamed r Sanctuary/ DEI related,” said another user.

Despite criticism, Mahan has been vocal in advocating for artificial intelligence adoption within government operations. He argues that AI can cut down on repetitive administrative work, allowing city workers to focus on delivering better services to residents.

“Historically, that would have taken hours of phone calls and reading, and you just never would have been able to get those insights,” he explained. “You can knock out these tasks at a similar or better level of quality in a lot less time.”

Still, Mahan acknowledged the limitations of AI, noting, “You still need a human being in the loop. You can't just kind of press a couple of buttons and trust the output. You still have to do some independent verification. You have to have logic and common sense and ask questions.”

San Francisco is also moving to embrace AI. Mayor Daniel Lurie announced plans Monday to roll out Microsoft's Copilot chatbot to nearly 30,000 city workers, including nurses and social workers. San Francisco officials emphasized that the initiative would include “robust privacy and bias safeguards, and clear guidelines to ensure technology enhances - not replaces - human judgment.