Consider action to approve a Resolution of the City Council of Watauga adding Policy 14.05, Use of Artificial Intelligence in the Personnel, Administration and Financial Policies and Procedures Manual.

Staff Report & Agenda Item Details

City staff is presenting for Council consideration a proposed Artificial Intelligence (AI) Policy establishing guidelines and expectations for the responsible, ethical, and effective use of artificial intelligence by City officials, employees, contractors, temporary staff, and volunteers who use AI in connection with their official duties. As AI technology continues to become more widely used in the workplace and in government operations, the proposed policy is intended to provide a consistent framework for its use while protecting the integrity of City operations, sensitive information, public records, and the public's trust in City government. The proposed policy does not prohibit the use of AI. Rather, it establishes parameters for when and how approved AI tools may be used in the performance of City business. Permitted uses include administrative and productivity functions such as drafting and proofreading documents, summarizing information, translation of publicly available materials, research assistance, and development of templates and other work products. AI may also be used as a decision-support tool when appropriate; however, the policy makes clear that AI-generated information must be critically reviewed and verified by City personnel and that final decisions remain the responsibility of qualified human officials or employees. AI may not serve as the sole or primary basis for consequential decisions affecting members of the public. A significant component of the policy is the protection of City and individual privacy and information security. Employees and other covered individuals are prohibited from entering protected, confidential, personally identifiable, legally privileged, criminal history, HIPAA-protected, or otherwise restricted information into AI tools that have not been specifically approved to handle that information. The policy also establishes requirements for reporting suspected unauthorized disclosures and requires the use of approved AI t