# Aiming to boost government efficiency, San Jose trains its 1,000th worker on AI tools > Source: > Published: 2026-06-27 12:30:40+00:00 **Getting your** [Trinity Audio](//trinityaudio.ai)player ready...As California becomes the first [state in the nation to track AI-related job losses](https://www.mercurynews.com/2026/06/25/gov-gavin-newsom-release-first-in-the-nation-tool-to-track-ai-related-job-losses/), San Jose is aggressively training its workforce to use artificial intelligence tools to increase local government efficiency — a move expected to help employees preserve their jobs. The city marked the training of its 1,000th employee this month – with staff now building their own AI tools to use in government operations – as the city moves to improve efficiency while trying to deliver critical services amid a tightening fiscal space. The city wants to train 2,500 employees – or 30% of its entire workforce – by June 2027. San Jose’s recently approved budget cut $50 million, largely by tapping reserve funds, eliminating mostly vacant positions, [and making specific cuts](https://www.mercurynews.com/2026/06/12/san-jose-budget-2026-things-to-know/) – including deferring public safety building projects and scaling back community events and homelessness initiatives. While the move required no mass layoffs, leveraging AI is part of a long-term plan to help remaining employees secure their positions – and maintain current public service levels – within an already lean workforce. According to latest data from the California State Controller’s Office, San Jose operates one of the leanest workforces of any major city in the state. The city employs just one worker for every 111 residents, compared to Oakland’s ratio of one per 69 residents. In neighboring San Francisco – a combined city and county – the ratio stands at one employee for every 20 residents. With little financial room to grow the workforce, efficiency has become critical – and officials said they have already seen benefits from technology training investments. AI tools have helped ensure fire trucks are stocked and ready, while speeding up response times for 311 – San Jose’s non-emergency line that takes care of things like graffiti and illegal dumping, San Jose Mayor Matt Mahan said. “We’ve documented tens of thousands of hours of time saved,” he added. “What’s exciting is that rather than replacing labor, we’re able to shift people’s time to addressing the most critical problems.” Across the United States, governments are increasingly turning to AI to improve city services. San Francisco’s city attorney began using AI last year to analyze municipal codes and local policy, while Oakland is piloting the use of autonomous drones to combat illegal dumping. Meanwhile, California state employees are testing Poppy, a generative AI tool that can produce executive summaries, retrieve data for reports and audits, and automate technical processes. Despite California also embracing AI tools, rapid technological innovation has raised alarms over worker displacement. On Thursday, Gov. Gavin Newsom announced a first-in-the-nation tracker to monitor AI-related job losses. The dashboard will be refreshed monthly, allowing the state to determine if interventions are required – such as job-search support, health-coverage assistance or retraining resources. In light of broader displacement concerns, Mahan emphasized his belief that the program will ultimately protect city workers. “I firmly believe we are able to manage technological change responsibly; it still requires people skills and knowledge,” Mahan added. “We need to empower our workforce, and they will not be displaced by machines.” City Manager Jennifer Maguire echoed this perspective. “As the Capital of Silicon Valley, San Jose has a responsibility to lead on artificial intelligence in a way that benefits residents and prepares our workforce for the future,” Maguire said. “Our vision is to build a city where technology supports safer neighborhoods, faster services, and a stronger quality of life while ensuring AI is implemented responsibly, transparently, and with public trust.” While deploying its use at home, San Jose has led public agencies nationwide in embracing technology through [co-founding GovAI in 2023](https://www.mercurynews.com/2026/04/09/san-jose-govai-nonprofit-ai-coalition-city-government/). Beyond technical expertise, trainings include data privacy, protocols and ethical use. “The program uses a train-the-trainer model, equipping employees to bring AI skills back to their departments and train colleagues directly,” the city said in a press release. “Each AI assistant developed through the AI Upskilling Program helps staff save 100 hours or more each year.” San Jose is home to several AI startups, and the surrounding Bay Area is the birthplace of some of the largest names in AI, including OpenAI and Anthropic. San Jose also hosts the annual GovAI Coalition Summit, where participants explore AI trends, ethical practices, data management and technology applications in governance, including public safety and transit. This year’s summit is scheduled for Dec. 9 – 11 at the McEnery Convention Center.