Early Consideration Response Form
Department Rules Date Item Department Rep. Name/Ext. Councilmember Sponsorship Policy/Ordinance Subject Staff Recommendation܆ GREEN Adopt based on tradeoffs
outlined on next page
܆ YELLOW Refer to Priority Setting
or to Budget Process
܆ RED Recommend Council not
adopt nominated idea
܆ NEEDS CLARIFICATION OR
MORE TIME TO EVALUATE
Staff Evaluation
Is this already underway in a department work plan?
܆ Yes
܆ No
Is this time critical or an emergency?
܆ Yes
܆ No
Will this require substantial resources, staffing, budget, or strategic support? ܆ Yes
܆ No
Criterion to Determine Scale of Project ComplexityProject complexity is determined by scoring the project in each of the 3 criterions below and then summing the score. a. Low Complexity is a sum of 6 or less.b. Medium Complexity is a sum of 7 – 9. c. High Complexity is a sum of 10 or greater.
Total Score =
Scoring Criterion
Low Complexity Medium Complexity High Complexity
Estimated Duration 6 – 9 months
܆ =1 9 - 18 months
܆ =2 More than 18 months
3 =܆
Organizational Complexity (Internal)
Can easily be absorbed into existing work plan
܆ =1 Planned work (future)
܆ =2 Work not currently proposed
3 =܆
Have staff with required skillset/knowledge
܆ =1 Have staff with required skillset/
requires moderate research
܆ =2 Do not have staff with required
skillset/requires significant research
3 =܆
Less than or equal 2 staff required
܆ =1 3 - 4 staff required
܆ =2 More than 5 staff required
3 =܆
(External) 1 Additional department; no
community outreach required
܆ =1 2 Other departments Involved;
some community outreach required
܆ =2 3 or more departments and/or external
partners involved; significant community outreach required 3 =܆
DEPT.
Required
܆ Airport
܆ Auditor
܆ CMO
܆ OEDCA
܆ ESD
܆ Fire
܆ HR
܆ IT
܆ PRNS
܆ Police
܆ Retirement
܆ Attorney
܆ Clerk
܆ CMO –
Budget
܆ Community
Energy
܆ Finance
܆ Housing
܆ IPA
܆ Library
܆ PBCE
܆ PW
܆ DOT
CMO Approval: Date
Economic Development + Information Technology 10/18/2023 C. 1 Nanci Klein (Lead), Khaled Tawfik Mayor Mahan, Vice Mayor Kamei, Incentivizing Artificial Intelligence Innovation Councilmember Cohen 10 /s/ Lee Wilcox 10/18/23
✔
✔
✔
✔
✔
✔
AnalysisExplain the rationale for staff recommendation, including any mitigating factors that need to be considered (recent legislative action, significant work plan changes, etc.). Please address the following as well. GREEN LIGHT: The Administration can implement this nominated idea under its current work plan. Item should be sent to Council to add to department work plan. (1) How will the idea be approached? (2) If adopted, what is its impact and/or tradeoff to the City Council Focus Area or to a department work plan, including strategic support? (3) What is the minimum viable scope to move the idea forward and reduce its complexity? YELLOW LIGHT: The Administration recommends Council send this nominated idea to the Priority Setting Process or to the Budget Process due to (describe cost implications, workload impacts, or other factors). RED LIGHT: The Administration recommends Council not to adopt this nominated idea due to (describe reason implementation would be difficult if not impossible – conflict with other laws, etc.).
Recommendation 2. | OEDCA + ITD—Green On the proposed effort to explore an “AI incubator, accelerator, applied laboratory, and/or co-working space in San José”, this aligns with OEDCA’s work to bring new technology, jobs, and investment to the City. OEDCA and ITD would seek to collaborate with elected leaders, academic leaders, and private entities on joint options and approaches. Depending on the outcome of those conversations, if any City resources were required to move from ideation to implementation, those ideas would need to be discussed as part of the FY24/FY25 budget process. (continued pg. 3)Recommendation 1. a., b., c., d. | OEDCA—Yellow Staff is already targeting AI businesses as part of OEDCA’s ongoing business development around retaining, expanding, and attracting business. However, creating staff capacity to deliver a high-level AI incentives pilot program by Spring of 2024 would require either deprioritzing other Council approved work or new resources, as a pilot program would require more robust outreach, and thoughtfully identifying effective incentives for AI companies, including a possible incentives structure. Specifically, time and staff capacity is required to discuss potential incentives with industry leaders and internal stakeholders, and identify legal (and related) parameters to design the potential program. In addition, any proposed pilot program incentives that have a budget impact would be decided by City Council as part of the FY 2024-2025 budget process. If City Council deprioritizes existing approved work, OEDCA staff will prepare a high-level program design and report back to City Council through a Manager’s Budget Addendum, otherwise staff will seek additional clarification through the Mayor’s March Budget Message as part of the FY 2024-2025 budget process.
Analysis (Continued)
Recommendation 4. | OEDCA—Green OEDCA has capacity to work with current and potential companies to identify potential grants and incentives related to AI development. OEDCA will work with the Mayor and City Council on opportunities to support efforts that would benefit San José’s economy and community opportunities. Recommendation 3. and 5. | OEDCA + ITD—Green The Information Technology Department (ITD) has memo items 3 (adoption of AI tools, ensuring responsible use and maximizing City efficiencies) and 5 (explore and integrate ethics, best practices, and benchmarking into internal AI... through creating or participating in working group entities) in its existing work plan for FY23-24. ITD is working with departments on AI-based solutions, as well as a regional and nationwide coalition to set procurement, security, and privacy standards for use by local governments, as well as integrate ethics and best practices. Work was initiated to assess effectiveness and trustworthiness of new systems in November 2022, when ITD established the AI Review Framework for AI-related procurements and by publishing the City’s Generative AI guidelines. In addition, ITD is currently working with departments to explore pilots for proactive detection of transportation anomalies, language translation/transcription, increasing responsiveness to resident contacts, and others.