San Jose Reshapes AI Coalition Into Nonprofit, Eyes Global Role

The city expects the transition to take approximately nine months.

Apr. 9, 2026 at 11:26pm

Got story updates? Submit your updates here. ›

A highly detailed, glowing 3D illustration of a futuristic AI control panel or data center infrastructure, bathed in neon cyan and magenta lights, conceptually representing the advanced technology powering the next generation of smart city services.San Jose's AI coalition aims to develop standards for using advanced technologies like this to enhance public services while addressing concerns over bias and workforce impacts.San Jose Today

San Jose is converting its GovAI coalition, founded in 2023, into an independent nonprofit organization. This will allow GovAI to pursue philanthropic funding, expand partnerships, and set AI policies and best practices for local government use. The transition is expected to take about nine months, and the nonprofit will be led by a board with members serving as individuals rather than formal representatives of their cities.

Why it matters

As a major tech hub, San Jose is taking the lead in shaping how local governments use artificial intelligence. The city wants to stay ahead of technological changes and develop standards for using AI ethically and efficiently in areas like public safety, transit, and routine government tasks.

The details

The city is using a $150,000 grant from the Packard Foundation to fund the transition of GovAI into a 501(c)(3) nonprofit. The coalition, which has grown from 1,000 to over 3,000 members representing 900 agencies across multiple countries, will now be able to pursue additional funding sources like grants, paid events, and private-sector sponsorships. An executive director selected by the board will oversee day-to-day operations.

  • San Jose founded the GovAI coalition in 2023.
  • The city council unanimously adopted the resolution to convert GovAI into a nonprofit on Tuesday, April 9, 2026.
  • The transition into a 501(c)(3) nonprofit status is expected to take about nine months.

The players

Matt Mahan

The mayor of San Jose, who is currently running for governor of California with strong support from Silicon Valley tech executives.

Khaled Tawfik

The director and chief information officer for the city of San Jose, who chairs the GovAI coalition board.

Peter Ortiz

A San Jose city councilmember who expressed skepticism over AI's potential for bias and discrimination, and called for protections against unintended consequences.

GovAI

A coalition founded by San Jose in 2023 to shape how local governments use artificial intelligence.

Packard Foundation

A philanthropic organization that provided a $150,000 grant to fund the transition of GovAI into a nonprofit.

Got photos? Submit your photos here. ›

What they’re saying

“If any city is going to figure out how to use these tools, use them safely, create the right regulatory and policy environment, and leverage them to enhance public services — it should be San Jose.”

— Matt Mahan, Mayor of San Jose

“I think we also have the responsibility to look at what potential guardrails should be, whether that's municipal jobs or careers, or even in the workplace outside, or just in society as a whole.”

— Peter Ortiz, San Jose City Councilmember

“It's incumbent upon us to make it true that these tools enhance our workforce and productivity, but are not deployed as a labor replacement. If anything, we use technology to get leverage and more productivity impact for our community, but we're going to continue to need people.”

— Matt Mahan, Mayor of San Jose

“This is just the beginning.”

— Khaled Tawfik, Director and Chief Information Officer, City of San Jose

What’s next

The GovAI Coalition Summit, where participants explore AI trends, ethical practices, data management, and technology applications in governance, is scheduled for December 9-11, 2026 at the McEnery Convention Center in San Jose.

The takeaway

San Jose's move to reshape its GovAI coalition into an independent nonprofit demonstrates the city's commitment to shaping the future of AI in local government. By taking a leadership role, San Jose aims to develop standards and best practices that can be adopted by cities around the world as they increasingly turn to AI to improve public services.