Local Governments Enter the AI Era... Active Adoption Abroad as Well

Seoul Launches 'Chatbot 2.0' with In-House LLM
More Flexible and Independent Than First-Generation Chatbots
AI Adoption Expands in Local Governments in the UK, Japan, and Beyond

In line with the era of artificial intelligence (AI), local government officials are increasingly adopting AI in administrative tasks. This includes the use of general AI tools such as ChatGPT, as well as cases where local governments implement their own AI systems.

According to the Seoul Metropolitan Government on August 8, the city has launched a new administrative support system called "Chatbot 2.0," which replaces repetitive administrative tasks?such as document search, regulation checks, and report writing?with generative AI. This year, Seoul plans to introduce its own large language model (LLM) on the internal network for pilot operation in select departments, and will gradually expand advanced features linked to internal administrative systems.

Seoul Mayor Oh Sehoon attended the "Creative Administration AI Proposal Ideathon" event held at the Seoul City Hall Multipurpose Hall on the 22nd of last month. Photo by Yonhap News

Until now, the city has provided chatbot services for citizens and employees, but these have all been based on fixed responses using predetermined rules and searches, which limited their ability to generate flexible conversations or handle complex queries requiring contextual understanding. Through the Chatbot 2.0 project, Seoul expects to overcome the limitations of first-generation chatbots and implement a flexible AI administrative support system based on generative AI. With AI providing real-time responses using information linked to internal systems, employees will no longer need to contact departments or request materials individually. According to a survey of Seoul city employees, there is internal demand for generative AI, with 23% citing automatic document drafting and 20% citing document summarization and organization as desired features.

The adoption of Seoul’s own LLM makes the system even more secure. The LLM-based "AI assistant," which operates on a closed internal network, is run in an independent AI environment built within the internal network, reflecting the importance of protecting internal information in public institutions. An external expert advisory panel concluded that building an in-house LLM is appropriate in terms of security and reliability. However, since the full expansion to citizen-facing services requires a cautious approach, the city plans to implement it in stages.

AI administration is also a major agenda at the central government level. On July 25, Minister of the Interior and Safety Yoon Ho-joong expressed his ambition in his inaugural address, stating, "We will move toward a competent and efficient AI democratic government by utilizing artificial intelligence." Minister Yoon also stressed, "Based on our valuable experience in achieving the world's number one e-government and digital government, we must accelerate the AI transition," adding, "The Ministry of the Interior and Safety will take the lead in the public sector AI transition, maximizing government capabilities and efficiency, and will become the epicenter and origin of a fundamental innovation in public administration."

The widespread adoption of AI across society has also penetrated administrative systems in many countries around the world. As local governments face declining numbers of civil servants and financial constraints, there is a growing trend to introduce AI into administration to improve service efficiency. According to a 2024 survey by the Local Government Association (LGA) in the United Kingdom, many local governments in the UK are applying generative AI to various public services. For example, the customer service department of Buckinghamshire County Council has reduced average call handling time by two minutes per call?cutting work time by 33%?thanks to AI’s call summarization and recording capabilities.

Japan, too, has introduced AI administration amid a declining population due to aging and increasing challenges for local governments. Yokosuka City in Kanagawa Prefecture began a pilot introduction of ChatGPT in 2023, using it for drafting press releases, summarizing documents, and generating ideas. Approximately 80% of employees who used ChatGPT reported that their working hours were reduced, resulting in improved efficiency.