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More than 100 mayors attended Bloomberg CityLab’s Mayors Innovation Studio to learn about using artificial intelligence in city government.

Courtesy of Bloomberg Philanthropies

More than 100 mayors descended on Washington, D.C. this week to learn how generative AI tools like OpenAI’s ChatGPT could help them better run their cities.

The mayors sought to learn how the cutting-edge technology could help them do everything from better predicting which areas would be most affected by natural disasters to making it easier for residents to navigate city services.

The roughly four-hour Mayors Innovation Studio, hosted by Bloomberg Philanthropies’ CityLab on Wednesday, is an example of how generative AI tools are making their way into many aspects of life and every level of government. While only 2% of cities surveyed by Bloomberg Philanthropies said they’re actively implementing the technology, 69% said they were actively exploring or testing it and 96% of surveyed mayors said they were interested in using it.

In Washington, where much of the discussion of AI has centered around how Capitol Hill should place broad guardrails on the technology, the session provided a glimpse into how local governments may be among the first to harness the power of AI to serve their constituents, even as federal lawmakers debate lofty principles.

“Cities are places of action, where new solutions hit the ground,” said James Anderson, who leads government innovation programs at Bloomberg Philanthropies, in a phone interview prior to the event. Cities are “the last mile and often the first mile in terms of the innovations,” he added.

James Anderson, head of government innovation programs at Bloomberg Philanthropies, introduces mayors to the Mayors Innovation Studio on AI.

Courtesy of Bloomberg Philanthropies

Policies governing tech have increasingly become the domain of state and local governments as Congress has failed to pass many major tech bills, like those protecting digital privacy or creating guardrails for kids on the internet. Meanwhile, states have taken such matters into their own hands, which many tech companies fear creates a patchwork of regulation that’s difficult to comply with.

The focus of Wednesday’s session was primarily on how generative AI may streamline processes for cities or offer new insights to make them safer or more efficient. The pandemic showcased the power of local governments harnessing data, Anderson noted, when many built dashboards of local Covid cases and hospitalizations.

Early in the session, Mitch Weiss, a Harvard Business School professor and former chief of staff to a former Boston mayor, demonstrated how the group might use ChatGPT to better understand and solve a local issue. Weiss used the example of “storrowing” in Boston, when trucks scrape their tops off while going under a low-clearance bridge.

Weiss prompted the chatbot to channel various experts to give their opinions and come up with solutions to reduce the issue and asked the AI questions like why warnings for low-clearance bridges weren’t working. ChatGPT said drivers were distracted, unfamiliar with the area, or over-relying on GPS.

At one point, he prompted ChatGPT to create a line graph from an open dataset of such incidents in New York City, and many in the room wowed when a graph with a steep drop in incidents quickly materialized. He asked for a hypothesis for what may have improved New York City’s storrowing compared to Boston, and ChatGPT suggested improved infrastructure, better signage, modern GPS and awareness programs may have contributed to the decline.

In one instance, just for fun, he asked ChatGPT for wacky solutions to the problem. The AI chatbot suggested a truck catapult. He also asked for more realistic solutions inspired by the wacky ones, and ChatGPT suggested a designated detour route. 

Using AI for summer job programs and town halls

Later, Weiss prompted ChatGPT to create a form advertising a new summer jobs program with a city and target it in a way that would appeal to teens. The AI came up with the branding of a “Summer Hustle,” and Weiss then prompted it to create a colorful graphic to promote the program.

Weiss also showed mayors how the tool could be used to prep for community board meetings, by asking the AI to generate possible questions from community members, including follow-ups.

Some mayors who said they’ve already played around with generative AI tools said they’ve used it to anticipate town hall questions, summarize articles they haven’t had time to read, create draft job descriptions or draft responses to constituents.

CNBC agreed not to quote individual mayors who participated during the event, which was marketed as a place where mayors could come to learn and freely ask questions about a new technology.

More than 100 mayors attended Bloomberg CityLab’s Mayors Innovation Studio to learn about using artificial intelligence in city government.

Courtesy of Bloomberg Philanthropies

The mayors also heard from several cities already deploying or thinking about the use cases of generative AI in their cities.

The city of Buenos Aires, Argentina, for example, is working on a generative AI model based on ChatGPT with its existing Boti chatbot that residents can text with using WhatsApp. The new generative AI version of Boti is trained to discuss culture and tourism — topics Melisa Breda, undersecretary for evidence-based policies, said they determined to be relatively low risk. Still, the tool hasn’t rolled out yet as Breda said it still needs fine-tuning to ensure its responses fit their criteria.

Boston’s Chief Information Officer Santiago Garces shared the city’s basic guidance to its employees for using the technology: review any outcomes, disclose the use of AI and don’t input sensitive data. Garces said such guidance should weigh the risks with the opportunity for employees in different parts of the government to experiment with it to determine how it can make their jobs more efficient.

Garces also said Boston is exploring how to use generative AI to translate information into specific regional dialects to help enroll residents in services.

Bloomberg Philanthropies and the Center for Government Excellence at Johns Hopkins University announced at the session a new City AI Connect platform, where city staff could continue to share ideas and resources on using AI in their governments.

The event sought to give mayors a starting point for how to think about implementing generative AI into their processes.

“We were hearing … oh my god generative AI, everyone’s talking about it everywhere,” said Anderson. “We understand it could mean a lot for local government. We have no idea where to begin.”

Mayors who spoke with CNBC around the event recognized the potential of generative AI to solve problems in ways that weren’t previously possible.

More than 100 mayors attended Bloomberg CityLab’s Mayors Innovation Studio to learn about using artificial intelligence in city government.

Courtesy of Bloomberg Philanthropies

“This is not a trivial thing,” said Chattanooga, Tennessee Mayor Tim Kelly in a phone interview ahead of the event. “If we can get this right and people can use AI to better access city services, I think it could move the needle.”

Kelly imagined that AI could help residents become more connected to their local governments, by surfacing open board seats that match their interests or simply making it easier for them to get information about recycling.

Columbus, Ohio Mayor Andrew Ginther hopes the technology can someday be used to better predict natural disasters and areas of high traffic accidents as well as streamline the process for residents to obtain government benefits for food.

“There’s great promise with AI really to help us transform local government operations and service delivery,” Ginther said. “We think it’ll allow us to help for better frontline decision-making, more real time information … We think those efficiencies are going to save city staff time and money and we think there are going to be dramatic improvements in resident customer experience. But we’re also going to have to invest in it.”

San Francisco Mayor London Breed, in an interview after the event, envisioned that AI could help the city identify forgotten and contradictory laws on the books, so they could work on clearing unnecessary regulatory hurdles for things like housing.

“We can’t approach it from a place of fear,” Breed said of AI. “It’s coming whether we want it to or not. The question is, are we going to move with it and stay ahead of it to a certain extent, or are we going to fall behind and get run over? … My hope is that we don’t get to that place where we allow this technology to run away from us.”

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Microsoft stock sinks on report AI product sales are missing growth goals

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Microsoft stock sinks on report AI product sales are missing growth goals

Microsoft: Have not lowered sales quotas or targets for salespeople

Microsoft pushed back on a report Wednesday that the company lowered growth targets for artificial intelligence software sales after many of its salespeople missed those goals in the last fiscal year.

The company’s stock sank more than 2% on The Information report.

A Microsoft spokesperson said the company has not lowered sales quotas or targets for its salespeople.

The sales lag occurred for Microsoft’s Foundry product, an Azure enterprise platform where companies can build and manage AI agents, according to The Information, which cited two salespeople in Azure’s cloud unit.

AI agents can carry out a series of actions for a user or organization autonomously.

Less than a fifth of salespeople in one U.S. Azure unit met the Foundry sales growth target of 50%, according to The Information.

In another unit, the quota was set to double Foundry sales, The Information reported. The quota was dropped to 50% after most salespeople didn’t meet it.

In a statement, the company said the news outlet inaccurately combined the concepts of growth and quotas.

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“Aggregate sales quotas for AI products have not been lowered, as we informed them prior to publication,” a Microsoft Spokesperson said.

The AI boom has presented opportunities for businesses to add efficiencies and streamline tasks, with the companies that build these agents touting the power of the tools to take on work and allow workers to do more.

OpenAI, Google, Anthropic, Salesforce, Amazon and others all have their own tools to create and manage these AI assistants.

But the adoption of these tools by traditional businesses hasn’t seen the same surge as other parts of the AI ecosystem.

The Information noted AI adoption struggles at private equity firm Carlyle last year, in which the tools wouldn’t reliably connect data from other places. The company later reduced how much it spent on the tools.

Read the full story from The Information here.

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Waymo expanding to Baltimore, Pittsburgh and St. Louis with manual test drives

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Waymo expanding to Baltimore, Pittsburgh and St. Louis with manual test drives

Waymo partners with Uber to bring robotaxi service to Atlanta and Austin.

Uber Technologies Inc.

Waymo on Wednesday said humans will begin test driving the Alphabet-owned company’s robotaxi vehicles in Baltimore, Pittsburgh and St. Louis.

The three cities represent the latest additions to Waymo’s quickly growing list of cities where the Google sister company is either operating its robotaxis, planning to launch service or starting to test its vehicles. That list now stands at 26 markets.

Waymo will begin manual drives in the trio of new cities this week with hopes to eventually begin serving fully-autonomous rides there, spokesperson Ethan Teicher told CNBC.

Over the past month, Waymo has been aggressively making announcements for new markets and developments at the Google sister company. This comes as tech rivals Amazon and Tesla made advancements in the robotaxi market in 2025. Amazon’s Zoox began offering free rides in Las Vegas and San Francisco, and Tesla this year launched ride-hailing service with human supervisors in the Austin and San Francisco markets.

In November, Waymo announced that it will soon begin manually driving in Minneapolis, Tampa and New Orleans. The company also added Houston, San Antonio and Orlando to its list of cities where it’ll launch service in 2026. Waymo also began offering rides on freeways in the San Francisco, Los Angeles and Phoenix markets, and it named a new finance chief.

With more than 250,000 weekly paid trips, Waymo’s robotaxi service currently operates in Austin, the San Francisco Bay Area, Phoenix, Atlanta and Los Angeles markets. The company in May said it had provided more than 10 million paid rides since launching in 2020.

The new cities further signal that Waymo is increasingly confident its service can work well in locations with colder weather conditions.

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Security startup Verkada hits $5.8 billion valuation in latest funding round led by CapitalG

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Security startup Verkada hits .8 billion valuation in latest funding round led by CapitalG

Filip Kaliszan, CEO of Verkada.

Courtesy: Verkada

Security technology startup Verkada has reached a $5.8 billion valuation after a new funding round led by CapitalG, Alphabet’s venture capital arm, announced Wednesday.

“I think Google saw the opportunity with us in the application of AI and everything we’re driving to apply AI to the physical security industry,” CEO Filip Kaliszan told CNBC’s Deirdre Bosa.

The company said in a release that the investment will be used to bolster its artificial intelligence capabilities and provide liquidity.

The financing totaled $100 million, a person familiar with the terms of the round told CNBC, raising the company’s valuation by $1.3 billion from its Series E funding in February. The person asked not to be named in order to discuss details of the funding.

CapitalG also recently contributed to a $435 million fundraise for cybersecurity startup Armis in November.

The new funding comes as Verkada surpasses $1 billion in annualized bookings across 30,000 customers globally.

The company develops physical security products, including cameras, alarms and sensors, that are connected under a single cloud-based software platform.

Kaliszan said his company serves a broad span of businesses, such as retailers, government properties, schools, and transportation.

For example, TeraWatt Infrastructure, which supplies charging sites to electric vehicles like Google’s Waymo, uses Verkada technology to protect EV facilities.

In September, the company rolled out over 60 new AI features and platform updates, including tools like “AI-Powered Unified Timeline.”

Read more CNBC tech news

The tool can automatically synthesize videos and images from several cameras into a single visual timeline, rather than requiring security teams to dig through multiple videos during an investigation.

“The genius of Filip and the team of Verkada is that they’re leveraging AI as a Rosetta Stone to really help unlock insights from cameras to help companies become safer and more efficient,” CapitalG general partner Derek Zanutto told Bosa.

By capturing over 20 million images per hour, Verkada can provide notable data like foot traffic, occupancy rates, security violations and other trends, Zanutto said.

He added that the physical security is a sleeping $60 billion market that is led by legacy hardware like “cameras that just record, not cameras that think” — a gap that Verkada is hoping to fill.

However, AI-powered technology will not necessarily replace human security guards any time soon.

“I think humans will be providing security to other humans for as long as I can think,” Kaliszan said. “But AI can empower these first responders to be more aware, to have situational knowledge, to know what to do, and in some cases, actually prevent the problems from happening.”

He pointed to the Louvre heist in October, where multiple crown jewels were robbed from the museum, as an opportunity where AI-assisted devices that could actively monitor, then immediately alert security forces, would be more effective than only physical personnel.

“If you could intervene right then, if you could know in real time that that’s happening, the potential for savings and preventing damage is tremendous,” he said.

xAI raises $15B in series E round

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