San Jose City Council Makes GovAI Coalition a Nonprofit

The City Council in San Jose, Calif., voted unanimously Tuesday to transition the GovAI Coalition into an independent, nonprofit organization.

“AI has the potential to transform how government works — making public services faster, safer and more cost-effective,” San Jose Chief Innovation Officer Stephen Caines told Government Technology via email. “That’s why San Jose founded the GovAI Coalition to share best practices and set a national benchmark for responsible AI use.”

The coalition formed in November 2023, from a video-conferencing call attended by approximately 50 agencies. Today, it has more than 3,000 members across 900-plus government agencies in multiple countries. The coalition, which is open to participation for representatives of government, academia and the private sector, supports sharing information and resources across governments, as there are commonalities in the AI tools available to different organizations.
As San Jose CIO Khaled Tawfik said during the City Council meeting, the nonprofit model supports sustained operations through new opportunities like access to philanthropic funding. Being a city initiative* constrains the coalition’s ability to scale and secure funding, he said.

Transforming the coalition into a nonprofit and obtaining 501(c)(3) status will take about nine months, the CIO said. In the meantime, it will operate under an interim fiscal sponsor. The transition will be funded by the Packard Foundation, with no added impact to the city’s general fund.

As a nonprofit, the coalition board will be comprised of government officials — as it is now, but no seats will be reserved for representatives of any one city, including San Jose. Currently, the board is made of representatives from different governments, but Tawfik serves as the board chair.

“As the coalition transitions into an independent nonprofit, San Jose will continue to lead and shape its growth and impact nationwide,” Caines said.

In the video below of the city’s City Council meeting Tuesday, Tawfik introduced the agenda item to establish the GovAI Coalition as a nonprofit. Mayor Matt Mahan talked about how the coalition has created a model for government to take advantage of AI tools, which he said government should be shaping so officials can harness them to enable better service delivery.

It makes sense, Mahan said, to take this step for “greater long-term sustainability,” emphasizing his hope that San Jose will continue to play a strong role in the coalition’s work. The City Council then voted unanimously in support of this transition.
The city’s leadership on advancing AI responsibly dates to its 2023 release of generative AI guidelines, which generated nationwide engagement; the coalition formed shortly after. Its first deliverables were published in March 2024. A subsequent AI upskilling training playbook, based on the city’s program, was intended to promote AI education in the public sector.

The coalition has delivered value to San Jose government as well, informing the city’s AI pilots and supporting its broader AI ecosystem.

*The GovAI Coalition Summit is hosted by Government Technology in partnership with the GovAI Coalition and the city of San Jose.