SAN FRANCISCO (Diya TV) — San Francisco Mayor Daniel Lurie is trying to establish the city as a global leader in artificial intelligence. As part of this effort, the mayor announced a citywide rollout of Microsoft 365 Copilot Chat, an AI-powered assistant tool developed by OpenAI, to nearly 30,000 city workers.
The rollout, part of Lurie’s broader plan to integrate AI into city government, is the largest of its kind in the country. City officials say the move will help staff save time, reduce administrative work, and improve public services.
Since taking office in January 2025, Lurie has built strong ties with tech industry leaders. He added OpenAI CEO Sam Altman to his transition team and has worked closely with major AI firms to make San Francisco the world capital of artificial intelligence.
“San Francisco is the global home of AI, and now, we’re putting that innovation to work for our residents,” Lurie said. “This rollout helps our workers deliver better, faster, and more human-centered services.”
Microsoft Copilot Chat uses OpenAI’s GPT-4o model and will assist city workers such as nurses, social workers, and planners in writing reports, summarizing documents, and managing data. The technology is being introduced at no additional cost under the city’s existing Microsoft license.
The new rollout follows a six-month pilot program involving 2,000 city employees. According to the city’s Director of Emerging Technologies, Jane Gong, 70% of participants saved up to five hours per week. Extrapolated to all city workers, that could mean as much as 7.8 million hours saved each year.
That time savings, based on the city’s average salary, could hold a theoretical value of over $400 million annually. While not a direct budget savings, it means more time spent serving residents instead of doing paperwork.
Michael Makstman, the city’s chief information officer, called it a game-changer. “We’re not just talking about innovation. We’re doing it—responsibly and at scale.”
The city has taken steps to ensure that AI is used safely and responsibly. Copilot Chat runs on Microsoft’s Government Community Cloud platform, which meets strict cybersecurity standards. It includes legal protections for personal and health data.
Updated Generative AI Guidelines released on July 8 ensure all content produced with AI meets privacy and accountability rules. Under these rules, city staff are responsible for anything they create using AI tools.
To support the transition, the city will launch a five-week training program. Live workshops and office hours will help staff use the tools effectively. The city is also working with InnovateUS, a nonprofit focused on public sector innovation, to help train employees in ethical and practical AI use.
With this rollout, San Francisco becomes the largest city in the U.S. to deploy Copilot Chat across its workforce. The city is also a founding member of the national GovAI Coalition, which supports AI innovation in local government.
District 5 Supervisor Bilal Mahmood praised the rollout, calling it “an important next step to complement our amazing city workforce.”
District 2 Supervisor Stephen Sherrill added, “Copilot will help staff spend more time doing meaningful work. The days of coming in on Sundays to do TPS reports are over.”
Lurie’s AI push is also bringing in private investment. OpenAI is expanding its Mission Bay office, now occupying more than 1 million square feet. Databricks has pledged $1 billion to open a new headquarters and keep its annual AI summit in the city through 2030.
The HumanX AI conference is also relocating to San Francisco in 2026, with Moscone Center events projected to generate $600 million in economic impact in 2025 alone.
Former Twitter CFO Ned Segal is now leading the city’s housing and economic development strategy, signaling a pro-business direction focused on tech and innovation.
San Francisco’s approach blends cutting-edge technology, economic development, and public service reform. By placing AI tools in the hands of every city employee, Mayor Lurie aims to set the global standard for how governments can use artificial intelligence responsibly.
“We are the AI capital of the world,” Lurie said. “Now we’re making sure our government reflects that innovation and delivers results for the people of San Francisco.”
